[Section-44AA] : Maintenance Of Accounts By Certain Persons Carrying On Profession Or Business. [Sec. 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 so notified by the Board in the Official Gazette shall keep and maintain such books of account and other documents as may enable the Assessing officer to compute his total income in accordance with the provisions of this Act.

The Board has notified the following professions for the purposes of this section—

(i) The profession of authorized representative.

(ii) The profession of film artists.

(iii) The profession of information technology.

Where the gross receipts from these professions do not exceed ` 1,50,000 in any of the three years immediately proceding the previous year in question and in case of newly set up profession the gross total receipts are not likely to exceed ` 1,50,000, such person are required to maintain such books of accounts and other documents as may enable the Assessing officer to compute the taxable income.

Where the gross receipts from these professions are likely to exceed ` 1,50,000 in all the three years immediately preceding the previous year or in case of newly set up profession his gross receipts in the profession for that year are likely to exceed ` 1,50,000, such persons are required to maintain such books of account as may be prescribed under rule 6F.

(2) Every person carrying on business or profession (not being a profession referred to in subsection (1) shall—

(i) If his income from business or profession exceeds ` 1,20,000 or his total sales, turnover or gross receipts exceed or exceeds ` 10 lacs in any one of the three years immediately preceding the previous year keep and maintain such books of accounts and other documents as may enable the Assessing Officer to compute his total income.

(ii) Where the business or profession in newly set up in any previous year and if income from such business a profession is likely to exceed ` 1,20,000 or his total sales, turnover or gross receipts in business or profession are or is likely to exceed ` 10 lacs during such- previous year, such person is also required to keep and maintain such books of accounts and other documents as may enable in Assessing Officer to compute his total income.

No books are prescribed in these cases.

(iii) Business under Sections 44AE, 44BB, 44BBB. In case of persons carrying on business of civil construction, or plying, hiring or leasing goods, or the business of retail or exploration of mineral oil or civil construction in certain turnkey power projects claim that their profit from these type of businesses is lower than the profit computed under these sections, such persons are also required to keep and maintain such books of accounts and other documents as may enable the Assessing Officer to compute the total income of the assessee.

 
 

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Definition of the Head ' Business or Profession'-[Sec.-28]
Compensation Received as Business Income(Section-28(ii))]
Income of a Trade or Professional Association [Section 28(iii)]
Income from Export Incentives is chargeable to Income Tax
Any Amount Received Under certain Agreement for not to Carry on Business [Section 28(va)]
Speculation Business [Explanation to Section 28]
Profit Earned from an Illegal Business
Transfer of certain Assets Specified u/s 35AD in certain circumstances [Section 28(vii)]
Certain Incomes relating to business but not taxable under the head ‘Profits Gains of Business or Profession .
Computation of Income of Business or Profession - General Important Points
General Principles - for Deductions Allowed from Gross Income of Business and Professions
Deductions from Gross Income of Business or Profession [ Section 30 to 44DB]
Expressly Admissible Deductions from Gross Income from Business or Profession [Section 30-36]
Expenditure Incurred in the Field of Scientific Research [Section 35]
Expenses on Research Activities carried on by the assessee himself
Contribution to Approved Institutions to carry on Research is Allowed as Weighted Deductions for Calculating Profits and Gains of Business or Professions.
Expenditure incurred on the acquisition of Patents Rights or Copy Rights [Section 35A] [Applicable for expenditure incurred before 1-4-1998]
Expenditure on know-how [Section 35 AB] [Applicable for expenditure incurred before 1-4-1998]
Expenditure for obtaining License to operate Telecommunication Services [Section 35 ABB]
Expenditure on eligible projects or schemes [Section 35 AC]
Deduction in respect of expenditure incurred on setting up of a Specified Business [Sec. 35AD]
Any amount given to an institution or association [Section-35CCA]
Expenditure on Notified Agricultural Extension Project [Section-35 CCC] [w.e.f. A.Y. 2013-14]
Expenditure on Notified Skill development project [Section-35 CCD] [w.e.f. A.Y. 2013-14]
Amortisation of Certain Preliminary Expenses [Section 35D]
Expenditure on demerger or amalgamation [Section 35DD]
Amortisation of Expenditure Incurred Under Voluntary Retirement Scheme [Section 35DDA]
Expenditure on Prospecting etc., for certain Minerals [Section 35E]
Other Deductions Allowed to Compute Income from Business or Profession   [Section-36]
Interest on Borrowed Capital [Sec. 36(1)(iii)].
Deduction of discount on Zero Coupon Bond [Section 36(iiia)]
Contribution to Provident and Superannuation Fund [Sec. 36(1)(iv)].
Employee’s contribution towards staff welfare schemes [Sec. 36(1)(va)]
Bad debts [Sec. 36(1)(vii)]
Bad debts of Banks, financial institution and industrial investment corporation etc. [Section 36(1)(viia)]
Special Reserve Created and Maintained by Financial Corporation [Section 36(1)(viii)].
Expenditure on Family Planning [Section-36(1)(ix)].
General Or Allowable Deductions [Section 37]
Commission earned by the agents of Life Insurance Corporation, Unit Trust of India, Post Office or Mutual Funds
Legal Expenses in the Interest of Business are Allowable Expenses
Losses incidental to Business Allowed to be Debited.
Expenses Expressly Disallowed In the Case of any ‘Assessee’ [ Section-40a]
Expenses Expressly Disallowed In the Case of any Firm [Section 40(b)]
Expenses Expressly Disallowed In General Cases [Section 40(b)]
Disallowing of certain Expenses under certain circumstances like ‘Payments to Relatives’
Payments exceeding ` 20,000 by cash/bearer cheque [Section 40A (3)].
Provision for the Payment of Gratuity – [Section-40A(7)]
DEEMED PROFITS Under Profits and Gains of Business or Professions [Section 41]
VALUATION OF STOCK for Profit and Gains of Business or Professions
Deduction Of Certain Payments Only If Actually Paid [Section 43B]
Maintenance Of Accounts By Certain Persons Carrying On Profession Or Business. [Sec. 44AA]
Compulsory Audit For The Non-Corporate Assessees [Section-44 AB]
Computation of Income on Estimated Basis [Section 44AD]
Profit from the business of carriage of goods for truck owners [Section 44 AE]
Special provision for computation of income from royalties in case of nonresidents [Section 44DA]
Partly Agricultural and Partly Business Income
Adjustment In The Profit And Loss A/C Prepared By The Assessee
Computation of Profits and Gains of a Non-Resident from Shipping Business— [Section 44B]
Computation of Profits and Gains of business of Oil Exploration [Section 44BB]
Computation of Profits and Gains of the Business of operation of Aircrafts by Non-Resident [Section 44 BBA]
Computation of Profits of Foreign Enterprises [Section 44BBB]
Ceiling Limits in respect of Head Office Expenses [Section 440]
Special Provisions in case of Income of Public Financial Institutions etc. [Section 43D]
 
 
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