Who is liable for section 44AA?
If the income from the profession is more than INR 1,20,000 or total turnover, sales or gross receipts exceed INR 10,00,000 in all 3 preceding years, such business is required to maintain books of accounts and other necessary documents.
Who is required to maintain accounts u/s 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 as is notified by the Board in the Official Gazette shall keep and maintain such books of account and other documents as may …
Are you liable to maintain accounts 44AA?
As per the provisions of section 44AA of Income Tax Act, every person carrying on the below profession must compulsorily maintain books of accounts: Legal.
Which profession is not specified profession under section 44AA?
As per section 44AA and rule 6F, the profession of “Teacher” is a non-specified profession and, hence, the provisions of section 44AA are applicable to her and she is either liable to maintain such books of account and other documents as may enable the Assessing Officer to compute her taxable income under the Income- …
Is Section 44AA applicable to partnership firm?
The presumptive taxation scheme under section 44ADA was previously applied to all the resident professionals referred to in section 44AA. Now onwards, it applies only to the resident individual, Hindu Undivided Family (HUF) or a partnership firm, other than LLP.
What is difference between 44AD and 44ADA?
The scheme of section 44AD is designed to give relief to small taxpayers engaged in any business, except the following businesses: > Business of plying, hiring or leasing of goods carriages referred to in section 44AE….Meaning of presumptive taxation scheme.
| Particulars | Amount |
|---|---|
| Taxable Business Income | XXXXX |
Which of the following type of assessee can opt scheme u/s 44AD?
presumptive taxation scheme
The following persons are eligible to opt for the presumptive taxation scheme of Section 44AD: Resident Individual. Resident Hindu Undivided Family. Resident Partnership Firm (with the exclusion of Limited Liability Partnership (LLP) Firms)
What is 44AA of Income Tax Act?
Category A: Such books of accounts as may enable the Assessing Officer to compute total income in accordance with the provisions of Income Tax Act, 1961.
Can Assessee claim both 44AD and 44ADA?
If we take the above view then sec 44AD and sec 44ADA can be simultaneously be opted and tax can be paid accordingly under each section.
Who Cannot opt for 44AD?
A person who is earning income in the nature of commission or brokerage cannot adopt the presumptive taxation scheme of section 44AD. Insurance agents earn income by way of commission and, hence, they cannot adopt the presumptive taxation scheme of section 44AD.
Who is not an eligible assessee u/s 44AD?
Apart from above discussed businesses, a person carrying on profession as referred to in section 44AA(1)is not eligible for presumptive taxation scheme. A person who is earning income in the nature of commission or brokerage cannot adopt the presumptive taxation scheme of section 44AD.
What was section 44aa of Income Tax Act 1961?
Section 44AA of Income tax Act,1961- Maintenance of accounts by certain persons carrying on profession or business 1. Section 44AA prescribes two categories of books of accounts and other documents:-
What is the applicability of section 44aa / 44AB / 44AD?
Applicability of Section 44AA/44AB/44AD of Income Tax Act, 1961-2021 * The payment or receipt, by a cheque drawn on a bank or by a bank draft, which is not account payee, shall be deemed to be in cash
Can a person opt for presumptive taxation under Section 44AD?
A person who is engaged in any profession as prescribed under section 44AA (1) cannot adopt the presumptive taxation scheme of section 44AD. The assessee can opt for the taxation scheme as per section 44ADA. Moreover, you must declare 50% of gross receipts as your presumptive income.
Do you have to maintain books of accounts under 44aa?
However, for taxpayers who claim that their income from the business is lower than the presumed income calculated as per that section, the taxpayer must maintain books of accounts specified under section 44AA. the taxpayer shifts from the presumptive taxation under section 44AD/44ADA to normal taxation.