Query regardin section 44aa of income tax act..urgent!!!

hi..i am filling itr 4 for one of my client. thr business is reparing of trucks and othr vehicles.. and their gross income is 850000/- but they do not have any proper books of accounts. but nly a book of expenses and income What should i opt while filing itr. whether books of accounts is required to be maintained or not??? if yes what are the consequences. and what all books do we need to maintain. pls help

Replies (1)

Generaly as per Sec 44AA,when ur income from Business or profession likely to exceed rs120000 during current year or exceeded during any year out of 3 preceding previous year,u are liable to Maintain Books u/s 44AA or turn over in the afore said period exceeds rs 10,00,000 liability to Maintain books will arise

so if ur income from business or profession during current year is 1,00,000 but ur turn over is 12,00,000 u r liable to maintain books under section 44AA

i think as u mentioned 8,50,000 as gross receipts we can consider it as turn over but if net income is above 120000 it is better to opt Presumptive taxation under sec 44AD which removes ur liablty to maintain books under sec 44AB provided u should not show income Less than 8% of ur gross turn over

if ur net income is less than 120000,no need to maintain books under section u/s 44AA

pls send me PM once u have confirmed ur query,these enable me to know wheather my assertions are correct or wrong

Reply is highly appreciated,thank u

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