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Section 44AA of Income Tax Act

 

Test Conditions

 

Books of accounts to be maintained

For Any business or Non-specified Profession -

if
income  > Rs. 1,20,000
or
sales/turnover/gross receipts > Rs.10,00,000
in any one of the three years preceding the previous year

(Or likely to exceed in case of new business/profession)

If yes =>

Assessee is required to maintain such books of accounts and other documents as may enable the Assessing Officer to compute the taxable income under Income Tax Act. (No particular set of books are specified)

(It includes any person opting Sec 44AD, 44AE, 44AF, 44BB, 44BBB and claiming profits lower than deemed profits.)

If No =>

Assessee is not required to maintain any books of account.

For Specified Profession*

if
gross receipts > Rs.1,50,000
in ALL the three  years preceding the previous year

(Or likely to exceed in case of new business/profession)

If yes =>

Assessee is required to maintain books of accounts as specified in Rule 6F#

If No =>

Assessee is required to maintain such books of accounts and other documents as may enable the Assessing Officer to compute the taxable income under Income Tax Act (No particular set of books are specified)

   

* Specified Profession:- Legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or authorized representative or film artist.

Explanation : In this rule,—               

                (a) “authorized representative” means a person who represents any other person, on payment of any fee or remuneration before any Tribunal or authority constituted or appointed by or under any law for the time being in force, but does not include an employee of the person so represented or a person carrying on legal profession or a person carrying on the profession of accountancy;

                (c) “film artist” means any person engaged in his professional capacity in the production of a cinematograph film whether produced by him or by any other person, as—

            (i) an actor;

            (ii) a cameraman;

            (iii) a director, including an assistant director;

            (iv) a music director, including an assistant music director;

            (v) an art director, including an assistant art director;

            (vi) a dance director, including an assistant dance director;

            (vii) an editor;

            (viii) a singer;

            (ix) a lyricist;

            (x) a story writer;

            (xi) a screen-play writer;

            (xii) a dialogue writer; and

            (xiii) a dress designer.

# Specified Books of accounts as per Rule 6F

  1. a cash book;
  2. a journal, if the accounts are maintained according to the mercantile system of accounting;
  3. a ledger;
  4. carbon copies of bills, whether machine numbered or otherwise serially numbered, wherever such bills are issued by the person, and carbon copies or counterfoils of machine numbered or otherwise serially numbered receipts issued by him:

Provided that nothing in this clause shall apply in relation to sums not exceeding twenty-five rupees.

  1. original bills wherever issued to the person and receipts in respect of expenditure incurred by the person or, where such bills and receipts are not issued and the expenditure incurred does not exceed fifty rupees, payment vouchers prepared and signed by the person.

Provided that the requirements as to the preparation and signing of payment vouchers shall not apply in a case where the cash book maintained by the person contains adequate particulars in respect of the expenditure incurred by him.

 

ID: 85 | Views: 1208 | Date: 04-05-2013| Posted By:

CA Mohit Jain



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