Who is required to maintain accounts u/s 44AA?

(1) Every person carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or any other profession as is notified by the Board in the Official Gazette shall keep and maintain such books of account and other documents as may …

What is the subject matter of section 44AA?

Maintenance of books of accounts by Professionals: Section 44AA of Income Tax Act and rule 6F of Income Tax rules deal with the provisions regarding maintenance of books of accounts under Income tax Act.

What is the limit of 44AA?

In the case of a taxpayer whose turnover was less than Rs 25 Lakh, but having total income above the maximum amount not chargeable to tax, are excluded from maintenance of books of accounts as per 44AA.

What is section 28 of Income Tax Act?

Section 28: Profits and gains of business or profession Section 28 of Income Tax Act, 1961 – Profits and gains of business or profession. The following income shall be chargeable to income-tax under the head “Profits and gains of business or profession” 1. Income of Business or Profession carried on by the assessee. 2.

Who is liable for tax audit u/s 44AB?

Ans: ​​​As per section 44AB, following persons are compulsorily required to get their accounts audited : A person carrying on business, if his total sales, turnover or gross receipts (as the case may be) in business for the year exceed or exceeds Rs. 1 crore.

Is 44AA applicable to 44ADA?

Section 44ADA offers a scheme of presumptive taxation of profits and gains arising from professions mentioned under Section 44AA(1) of the Income Tax Act, 1961. The benefit of section 44ADA can be taken only by those specified professionals whose annual gross receipts are under Rs 50 lakh.

What is Section 44AA and 44AB?

Sections 44AA and 44AB were introduced for simplifying the tax compliances of people in business & small professionals. These sections prescribe minimum agreements such as maintenance of books & tax audits required by the entity that falls under the provisions of this section.

What is difference between 44AA and 44AB?

An assesses who opts for the benefits under section 44AD is not required to maintain books of account that are required to be maintained under section 44AA. The assessee who opts for the benefits under section 44AD is also not required to get his accounts audited as required under section 44AB.

What is Section 269SS of Income Tax Act?

What is Section 269SS? As per Section 269SS, any deposit or loan or any specific amount should not be accepted or taken from any person other than by an account payee bank draft, account payee cheque, or through electronic clearing system via bank account, if: The amount of deposit or loan or specified sum is Rs.

What are the items falling under section 28?

(v) 1 any interest, salary, bonus, commission or remuneration, by whatever name called, due to, or received by, a partner of a firm from such firm: Provided that where any interest, salary, bonus, commission or remuneration, by whatever name called, or any part thereof has not been allowed to be deducted under clause ( …

What is the difference between 44AB and 44AD?

If a person who has failed to opt the provisions of presumptive taxation under section sec 44AD(1) and his income is above the basic exemption limit, then he will be required to get his books of accounts audited u/s sec 44AB(e) even if he declares profits above 8% or 6% of turnover.

What is specified profession u/s 44AA 1?

For the purpose of section 44AA and Rule 6F legal, ‘specified professions’ includes … medical, engineering, architectural, accountancy, technical consultancy, or interior decoration or any other notified profession [i.e., authorised representative, film artist, company secretary and information technology].

What is SEC 44aa (2)?

Sec 44AA (2) requires persons carrying on business to maintain books of accounts in certain cases. If a person is carrying on business, he is required to maintain books if his turnover exceeds Rs. 10,00,000 or his profits from business exceeds Rs. 1,20,000 in any of the three preceding years.

What are the conditions for applicability of SEC 44AB (E)?

The two conditions for applicability of Sec 44AB (e) can be summarized as: a) The assessee is not eligible for presumptive taxation u/s 44AD for subsequent 5 years , due to opting of presumptive taxation u/s 44AD in any previous year and not opting sec 44AD in any of subsequent 5 consecutive Assessment years.

Who are the persons covered under Section 44AE?

For the purpose of this section, persons may be classified as follows: Person carrying on specified Profession. Person carrying on other than Specified Profession. Person carrying on Business. Person covered under Sections 44AE, 44BB, 44BBB and 44AD (Presumptive Income Basis).

What is the maintenance of books of accounts under section 44aa?

For most of the people carrying on a business or profession, maintenance of books of accounts has always been a trick question. There are many misconceptions about the maintenance of accounts under section 44AA of Income Tax Act,1961. An assessee need not maintain the books in every case.