maintainance of books of accounts by audited firm u/s 44AA

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Harshit asked over 3 years ago

Whether a firm which is audited u/s 44 AB is required to maintain prescribed books of accounts u/s 44 AA

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10 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Anil Dhawan answered almost 3 years ago

A firm is required to maintain prescribed books of Accounts u/s 44 AA if below mentioned are complied with : 1. income from business or profession exceeds Rs 1,20,000 in any of the three previous years; or 2. Turnover or gross receipts have exceeded Rs. ten lakh in any of the three previous years This limit is not applicable if the firm is carrying on specified profession like legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or any other profession as is notified by the Board in the Official Gazette. The conditions for Audit u/s 44 AB is : 1. Person Carrying on business & turnover exceeds 1 Crore. 2. Person Carrying on profession if gross receipt exceeds 25 lakhs 3. Person carrying on business and covered under provision 44 AD / 44AE/44BB/44BBB & claims his income from the said business to be lower than the deemed profit and gains computed under the relevant section & and his income exceeds the maximum amount which is not chargeable to income-tax in any previous year.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 acharya answered almost 3 years ago

Section 44AA is applicable for those specified persons who need to maintain books in a specific format. Say for Example - A DOCTOR He needs to maintain separate kind of specific books apart from the normal Cash Book, Bank Book, General Ledger, etc., Specific Book in sense His Patients Register, Inventory Book to find out list of equipments used, unused, etc.

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Open uri20170510 32134 ng4pv?1494421709 SONIYA answered over 3 years ago

**A firm is required to maintain prescribed books of Accounts u/s 44 AA if below mentioned are complied with :** 1. income from business or profession exceeds Rs 1,20,000 in any of the three previous years; or 2. Turnover or gross receipts have exceeded Rs. ten lakh in any of the three previous years This limit is not applicable if the firm is carrying on specified profession like legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or any other profession as is notified by the Board in the Official Gazette. **The conditions for Audit u/s 44 AB is :** 1. Person Carrying on business & turnover exceeds 1 Crore. 2. Person Carrying on profession if gross receipt exceeds 25 lakhs 3. Person carrying on business and covered under provision 44 AD / 44AE/44BB/44BBB & claims his income from the said business to be lower than the deemed profit and gains computed under the relevant section & and his income exceeds the maximum amount which is not chargeable to income-tax in any previous year. **Therefore a firm which is audited u/s 44 AB is compulsorily required to maintain prescribed books of accounts u/s 44 AA.**

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 chetna answered over 3 years ago

Section 44AA is applicable for those specified persons who need to maintain books in a specific format. Say for Example - A DOCTOR He needs to maintain separate kind of specific books apart from the normal Cash Book, Bank Book, General Ledger, etc., Specific Book in sense His Patients Register, Inventory Book to find out list of equipments used, unused, etc. So Section 44AA governs those specific persons who are into the field of legal, engineering, accounting, interior decorator and other services as Notified by CBDT, So in Simple words "SPECIFIC PERSONS MUST MAINTAIN EXTRA BOOKS APART FROM THEIR NORMAL BOOKS MAINTAINED U/S 44AB"

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Prabhash answered over 3 years ago

Hi Friend, Audit of Books of Accounts is governed u/s 44AB of the income tax act 1961 and Maintenance of Books of Accounts is governed u/s 44AA of the said act. These two provisions are separate provisions and does not have any relation with each other. Hence audit of accounts does not warrant maintenance of books of accounts. For Audit - In case of business the limit is Rs.1Crore and for Profession it is Rs.25Lac For Maintenace of Accounts - In case of profession or business are as follows:- Category A - Specified profession whose gross receipts do not exceeds Rs.150000 in any 1 or more years of preceding 3 years Category B - Specified profession whose gross receipts exceeds Rs.150000 in all the 3years of preceding the PY. Category C - Non specified profession whose gross receipts exceeds Rs.120000 in all the 3 years of preceding the PY. Category D - Non specified profession/business whose gross receipts/turnover exceeds Rs.120000 in any of the 3years of preceding the PY.

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Open uri20170510 32134 1c996lj?1494421732 Anil answered over 3 years ago

Every person carrying on the **Legal, Medical, Engineering, Accountancy or Interior Decoration or any other profession as notified by CENTRAL BOARD OF DIRECT TAXES (CBDT)** are required to maintain such books of accounts & other documents as may enable the Assessing Officer to compute Assessee’s total income.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 sapare Bhavani Bai answered over 3 years ago

Hello Harshit, To get accounts audited U/s 44AB,the assessee has to maintain books of accounts.If the assesee has not maintained books of accounts then no audit is required as per a specified case law. As per section 44AA of income tax act the following persons has to maintain books of accounts 1.Every person carrying on specifed profession shall maintain books of accounts(specified professional-legal,medical, engineering, accounting, technical consultant, interior decoration/any other profession as notified by CBDT. 2.every person (other than those specified in 1)carrying on business or profession shall A.if his total income from business or profession exceeds 120000or his total turnover or gross receipts exceeds 1000000 in any of the three years immediately proceeding the previous year B.in case of newly set up if his income is likely to be exceed 120000/ if turnover or gross receipts exceed 1000000 in such previous year C.where profits are deemed to be profits under section 44AE/44BB/44BBB and the assessed claims his income lower than the deemed profits D.where profits are deemed to be profits under sec 44AD and the assessed claims his income lower than the deemed.income has to maintain books of accounts

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 ajay pandey answered over 3 years ago

As per Sec.44AA , Prescribed Books: - In case of Specified Profession if Gross Receipts exceed Rs.150000/- in all 3 years immediately preceding previous year. Any Books of Accounts: - In case of Specified Profession if Gross Receipts are less than 150000/- in any of 3 years immediately preceding previous year then assessee has to maintain books of accounts. In case of Non Specified Profession if Total income exceed Rs.120000/- or Gross Receipts exceed Rs .1000000/- in any of 3 years immediately preceding previous year. As per Sec.44 AB, Audit of accounts is compulsory; In case of Business: - If Total Sales/ Gross Turnover exceeds Rs 1 Crore in any previous Year. In case of Profession: - If Gross Receipts exceeds Rs 25 Lakh in any previous Year. As Prescribe turnover Or Income in case of Audit is higher than Maintenance of Books Of Accounts so it can be concluded that if audit is applicable then books should be maintain.

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Open uri20170510 32134 1ive9a3?1494421760 purvi answered over 3 years ago

Hi, Audit of accounts Of Certain Persons Carrying On Business Or Profession is compulsory; In case of Business: - If Total Sales/ Gross Turnover exceeds Rs 1 Crore in any previous Year. In case of Profession: - If Gross Receipts exceeds Rs 25 Lakh in any previous Year. Yes, the Firm which is audited u/s 44 AB is required to maintain prescribed books of accounts u/s 44 AA The very purpose of introduction of the provisions of audit under section 44AB was to ensure that the books of account and other records are properly maintained, that they faithfully reflect the income of the taxpayer and claims for deduction are correctly made by him ------------------------------------------------------------------------

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Ketan answered over 3 years ago

Dear Harshit Every person carrying on legal, medical, engineering or architectural profession, or profession of accountancy or technical consultancy or interior decoration or any other profession as is notified by the CBDT are mandatorily required to keep and maintain such books of account and documents as may enable the AO to compute his total income in accordance with the provisions of the I.T. Act. Authorised representatives, Film Artists, Company Secretaries and Profession of Information and Technology have been notified by the CBDT as notified professions.

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