44AD - Exemption from maintaining books under 44AA

[VENKAT S]

Can a person claim exemption from maintaining books of account under Sec 44AA(2)(i) by filing his return under 44AD of the Act? Under which provision/circular/instruction can the assessee claim such benefit?

AI Summary

Can a person claim exemption from maintaining books under Section 44AA(2)(i) by filing under Section 44AD? An individual inquired whether a person can claim an exemption from maintaining books of account under Section 44AA(2)(i) by filing a return under Section 44AD of the Income Tax Act. The response clarified that an eligible assessee could claim such an exemption if they meet the conditions of Section 44AD. However, if the provisions of Section 44AD(4) apply and the total income exceeds the non-taxable limit, the assessee must maintain books and get them audited as per Section 44AA(2) and Section 44AB. Failure to comply with Section 44AD conditions requires maintaining books of accounts.