for example: professional income it person gross receipts rs:14 lacs net profit declared 50 percent rs:7 as per sec 44ada provision it returns filed in f.y.20-21. question: a person accounting records maintained compulsory or not compulsory
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This discussion clarifies whether an IT professional filing under Section 44ADA needs to maintain accounting records. The consensus is that if the net profit declared is 50% of gross receipts (Rs. 7 lacs on Rs. 14 lacs turnover), it deviates from the presumptive scheme's requirements. For presumptive taxation under Sec 44ADA, net profit should ideally be 8% of turnover, and turnover must be under Rs. 2 crores. In such cases, maintaining detailed books of accounts is generally not compulsory.