An individual assessee has a turnover of Rs.38 lacs for financial yr 08-09. His income comes out to be Rs.60000/- for the year as per income tax act. He doesn't opt for presumptive taxation:
My question is whether he is required to maintain books of accounts?
Yes , offcourse he is required to maintain proper books of account if he is not choose presemptive income scheme.
Explanation of section 44 AA of Income tax Act, 1961
1) If a person is in specifed profession and his gross receipt Rs 150000 in last three p.y. then he is liable to maintain proper books of accounts ( Chartered Accountant.CS, Doctor, Film Artist or any notified profession )
2) If he is not in any specified profession then limit of Rs 150000, reduced to RS 120000.
Yes, if u are not going for presumtive taxation, then you have to maintain your books, and be taxed as per ur income as per the income...
ya certainly he require to maintain the buks.
Dear all,
I was also holding the same view as u all r holding but when I saw the Supplementary study paper 2009 issued by the institute page no. 22 for May2010 containing amendments for the Direct Taxes, It says that since the income is below the taxable limit, the assessee is not required to file return at the very first place. and since no return is required to be filed, maintainance of books is not necessary.!!!!!!!!!!!!
For the suppourt of my reply, i m attaching that portion of the file:
Pls reply to the above..!!!!!!!!!!!!
The relevant file is also attached for reference. Pg. no. 22.!!!!!!!!!!!
CAclubindia
