Who is required to maintain books of accounts as per income tax act?
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Section 44AA mandates the maintenance of books of accounts by certain professionals and businesses, depending on their income, turnover, and the nature of business. 🏢 A. Specified professions include: Legal Medical Engineering Architecture Accountancy Technical consultancy Interior decoration Film aRead more
Section 44AA mandates the maintenance of books of accounts by certain professionals and businesses, depending on their income, turnover, and the nature of business.
🏢 A. Specified professions include:
Legal
Medical
Engineering
Architecture
Accountancy
Technical consultancy
Interior decoration
Film artists
Authorized representatives
Company secretaries
Information technology professionals
✅ Required to maintain books if:
📘 Such professionals must maintain books as per Rule 6F (covered later below).
🏢 B. Businesses (Non-specified professions)
✅ Books required under Section 44AA(2) if:
Income from business or profession exceeds ₹2,50,000 in any one of the 3 preceding years
OR
Turnover or gross receipts exceed ₹25,00,000 in any of the 3 preceding years
💼 C. Persons not covered above but opting out of presumptive taxation (Section 44AD/44ADA/44AE)
If the person:
Declares income less than the presumptive rate
AND
Their income exceeds the basic exemption limit,
➡️ Books of account must be maintained.
Sumamry:
Turnover > ₹ 25 lakh
opt-out
exemption
limit