Income Tax

Increase in threshold limit-books of accounts maintenance us 44AA for Individuals and HUF. New threshold for income 2.5 lakhs and for turnover Rs. 25 lakhs

Increase in threshold limit-books of accounts maintenance us 44AA for Individuals and HUF. New threshold for income 2.5 lakhs and for turnover Rs. 25 lakhs

Budget 2017-18 : Increase in threshold limit for maintenance of books of accounts for Individuals and HUF

The existing provisions of clause (i) and clause (ii) of sub-section (2) of section 44AA of the Act cast an obligation on every person carrying on business or profession [other than those mentioned in sub-section (1) such as 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] to maintain such books of accounts and documents in the previous year to enable the Assessing Officer to compute his total income in accordance with the provisions of Act, provided that the income and total sales or turn over or gross receipts, etc specified in said clauses exceeds rupees one lakh twenty thousand and rupees ten lakhs respectively.

In order to reduce the compliance burden, it is proposed to amend the provisions of section 44AA to increase monetary limits of income and total sales or turn over or gross receipts, etc specified in said clauses for maintenance of books of accounts from one lakh twenty thousand rupees to two lakh fifty thousand rupees and from ten lakh rupees to twenty-five lakh rupees, respectively in the case of Individuals and Hindu undivided family carrying on business or profession.

This amendment will take effect from 1st April, 2018 and will, accordingly, apply in relation to the assessment year 2018-19 and subsequent years.

Share

Recent Posts

  • Income Tax

Deduction u/s 80P denied as return not filed u/s 139(1) but in response to notice u/s 148

Deduction u/s 80P denied as assessee did not file return u/s 139(1) but beyond the due date only in response…

6 hours ago
  • GST

High Court denied pre-arrest bail to accused of fake ITC utilisation

High Court denied pre-arrest bail to accused of fake ITC utilisation on possibility of misusing the concession of pre arrest…

8 hours ago
  • Income Tax

ITR was not non est for no e-verification when AO took cognizance of returned income

Return could not be said to be non est for non e-verification when AO had been taken due cognizance of…

1 day ago
  • Income Tax

Section 43CB & ICDS-III is applicable to contractors not to real estate developers

Section 43CB read with ICDS-III is applicable to contractors and not real estate developers - ITAT In a recent judgment,…

1 day ago
  • Income Tax

Expenses of ESOP are allowable as revenue expenditure u/s 37(1) of Income Tax Act.

Expenses incurred on ESOP are allowable as revenue expenditure u/s 37(1) of Income Tax Act – ITAT Delhi In a…

2 days ago
  • Income Tax

Compliance history of supplier can’t be used to invalidate genuine business transactions of buyer

Compliance history of supplier could not be used to invalidate the genuine business transactions of the buyer especially when the…

2 days ago