WebFeb 6, 2024 · Failure to maintain the accounting records as per the requirements of Section 44AA, a penalty will be levied under section 271A. The maximum penalty that can be charged is INR 25,000. However, providing a reasonable cause for the failure to maintain accounting records may result in no penalty being levied on the taxpayer. WebOct 25, 2024 · Sections 44AA and 44AB were introduced for simplifying the tax compliances of people in business & small professionals. These sections prescribe minimum agreements such as maintenance of books & tax audits required by the entity that falls under the provisions of this section. Maintenance of books & accounts is not mandatory for every …
Maintenance of Books under section 44AA - Kanakkupillai
WebJun 1, 2024 · Section 44AA deals with provision relating to persons who all are liable to maintain Books of Account as per Income Tax. Businesses and professions are required to maintain the books of accounts for income tax purpose. The detailed requirements of different transactions are prescribed under section 44AA. Weblower than the profits and gains specified under Section 44BB i.e. less than 10 per cent of such remuneration, it is the requirement that the assessee must keep and maintain books of accounts and other documents as required under sub-section (2) of Section 44AA and to have his accounts audited and to furnish a report of such audit as sondra guthrie
Books of Accounts and Audit Requirements - Tax2win
WebFeb 18, 2024 · Section 44AA mandates that certain books of accounts must be maintained by taxpayers who fall under its purview. These include: Cash Book: A cash book must be maintained to record all cash receipts and payments made by the taxpayer. Journal: A journal must be maintained to record all non-cash transactions such as sales, … WebJan 13, 2024 · Under Section 44AA of the income tax act, if income from your existing profession is more than Rs. 1,20,000 in the previous three years, you have to maintain books of accounts. The same is applicable if your business’s total sales, turnover, or gross receipts exceed Rs. 10 lakh in any three years before last year. WebFeb 2, 2024 · What records must be maintained under section 44AA? The following records must be maintained by taxpayers under Section 44AA: Cash book Journal Ledger Copies of invoices raised on clients Invoices for expenditures claimed Daily case register Photocopies of bills or receipts issued for more than Rs. 25 sondra fisher realtor