TaxTMI 
TaxTMI 
Some lights on section 44AA
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....ome lights on section 44AA<br>By: - tarannum khatri<br>Income Tax<br>Dated:- 3-1-2014<br><br>Some lights on sec 44AA, 44AB, 44AD 44AA: MAINTENANCE OF BOOKS OF ACCOUNTS WHO SHOULD MAINTAIN : * If a person carrying on business / profession and income from such business/ profession has exceeded 1,20,000 in any of the three p.y. or current p.y. (for newly set up business) * If turnover / gross r....
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....eceipts has exceeded Rs 10 lacks in any of the three p.y. or current p.y. (for newly set up business) For business set up in p.y. 12-13 and during that year turnover has exceeded 10 lacks or income has exceeded 1,20,000 , a person should maintain books of accounts. Other cases : If turnover or income has exceeded those limits in p.y. 09-10 or 10-11 or 11-12, a person should maintain books of acc....
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....ounts. Note: limits of 1,20,000 should be increased to 1,50,000 for professions notified in rule 6F. * Where assessee is showing profit under presumptive taxation u/s 44AA, 44BB, 44BBB, he is showing lower profit than prescribed in those sections . * Where assessee is showing profit under presumptive taxation u/s 44AD , he is showing lower profit than prescribed in that section and DURING TH....
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....AT PREVIOUS YEAR HIS INCOME EXCEEDED THE BASIC EXEMPTION LIMIT. SO if assessee has income lower than basic exemption limit or loss , he can show profit less than 8 percent without maintaining books of accounts. BOOKS TO BE MAINTAINED: * Cash book * Ledger * Journal * Bills of income for amounts exceeding Rs. 25 * Bills of exp for amounts exceeding Rs. 50 * Medical practitioner should....
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.... maintain daily cash register and inventory record . THE BOOKS SHOULD BE MAINTAIN FOR A PERIOD OF SIX YEARS FROM THE END OF THE ASSESSMENT YEAR OR IF THERE IS REASSESSMENT , UNTIL COMPLETION OF RE ASSESSMENT. Sec 44 AB : AUDIT OF ACCOUNTS WHO HAVE TO MAKE HIS ACCOUNT AUDITED?? * Person carrying on business and total sales, turnover or receipts has exceeded 1 crore rs. In p.y. * Person carry....
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....ing on profession and gross receipts has exceeded 25 lacks rupees. In previous year * Where assessee is showing profit under presumptive taxation u/s 44AA, 44BB, 44BBB, he is showing lower profit than prescribed in those sections . * Where assessee is showing profit under presumptive taxation u/s 44AD , he is showing lower profit than prescribed in that section and DURING THAT PREVIOUS YEAR HI....
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....S INCOME EXCEEDED THE BASIC EXEMPTION LIMIT. SO if assessee has income lower than basic exemption limit or loss , he can show profit less than 8 percent without making his account audited. HOW TO CALCULATE TURNOVER: When 2 business : clubbed the income of both business When 1 business and 1 profession: get the account audited if turnover of the business exceeds 1 crore or receipt of the profes....
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....sion exceed 25 lacks. Note : Receipt should be from business or profession and not from the sell of fixed assets. While calculating turnover for agents , consider only commission charges. LAST DATE FOR AUDIT IS 30 SEPTEMBER. PENALTY : Non compliance will attract penalty of half percent of turnover or 1,50,000 whichever is lower. SEC 44AD : PRESUMPTIVE TAXATION * It is only for individual, HU....
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....F and firm (not LLP) Carrying on business except business u/s 44AE. * ASSESSEE 's gross receipt should not exceed 1 crore. * Assessee can declare 8 percent or higher sum of his gross receipt as his income under this section and he has no need to maintain accounts or get the accounts audited. * So it assessee is declaring lower income than 8 percent and his total income exceeded basic exempti....
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....on limit , he should get his accounts audited by CA u/s 44AB. * Advance tax provision is not applicable to the assessee following sec 44AD. * ASSESSEE can not get deduction u/s 10AA AND business related deduction of chapter 6A. He can get deduction u/s 80c to 80G. * All deduction u/s 30 to 38 shall be deemed to have been allowed. * Written down value of assets shall be calculated as if the....
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.... depreciation has been actually allowed. * SALARY AND INTEREST of the partners are to be allowed after calculated profit under this section. * If any material supplied by buyer will not be form part of gross receipt. * Assessee can not carry forward unabsorbed depreciation or business loss. * This section is not applicable to business man earning commission income or agency income.<br> Sch....
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