In this advance learning we will learn about the provisions relating to maintenance of books of account as given in section 44AA. These provisions are as follows:
The provisions relating to maintenance of books of account can be classified as follows:
Provisions relating to a person engaged in specified profession.
Provisions relating to a person engaged in non-specified profession.
Provisions relating to a person engaged in business.
Let’s first understand the meaning of terms “specified professions” and “non-specified professions”.
For the purpose of maintenance of books of account, following professions are treated as “Specified professions”:
Authorised representative (*)
Film artist ($)
(*) “Authorised representative” means a person who represents any other person on payment of any fee or remuneration before any Tribunal or authority constituted or appointed by or under any law for the time being in force, but does not include an employee of the person so represented or a person carrying on legal profession or a person carrying on the profession of accountancy.
($) “Film artist” means any person engaged in his professional capacity in the production of a cinematographic film, whether produced by him or by any other person as an actor, a cameraman, a director, a music director, an art director, a dance director, an editor, a singer, a lyricist, a story writer, a screenplay writer, a dialogue writer, and a dress designer.
For the purpose of maintenance of books of account following professions are treated as “non-specified professions”:
“Non-specified professions” means professions other than “Specified professions” mentioned above.
Provisions in case of an assessee carrying on a specified profession, whose gross receipt exceeds Rs. 1,50,000 :
Every person carrying on specified profession, whose gross receipt from such profession exceeds Rs. 1,50,000 in all the three years immediately preceding the previous year (in case of new profession if the gross receipts of the first year are likely to exceed Rs. 1,50,000), shall maintain such books of account and other documents as are prescribed by rule 6F (see list given below).