Section 44AA : Books of Accounts to be maintained

Section 44AA

The Income-tax Act does not prescribe any specific books of account to be maintained by a person engaged in business or in non-specified profession. However, as per Section 44AA read with Rule 6F such a person is expected to keep and maintain such book of account and other documents as may enable the Assessing Officer to compute his total income in accordance with the provisions of the Act, if:-.

Particulars Individual or HUF Any other assessee
In case of existing business or profession, income or gross turnover in any one of the 3 preceding previous years exceeds the following-

a. Income from business or profession
b. Turnover/gross receipts in the business or profession



Rs. 2,50,000
Rs. 25,00,000




Rs. 1,20,000
Rs. 10,00,000
In case of newly setup business or profession, income or gross turnover of the first previous year is likely to exceed the following-

a. Income from business or profession
b. Turnover/gross receipts in the business or profession



Rs. 2,50,000
Rs. 25,00,000



Rs. 1,20,000
Rs. 10,00,000

For companies the books of account are prescribed under the Companies Act. Further, the Institute of Chartered Accountants of India has prescribed various Accounting Standards and Guidelines that are required to be followed by the business entities As regards the maintenance of books of account by a professional, who is engaged in specified profession has to maintain certain prescribed books of account, if the annual receipts from the profession exceed Rs. 1,50,000 in all the three years immediately preceding the previous year (in case of newly set up profession, his annual receipts in the profession for that year are likely to exceed Rs. 1,50,000).

Specified profession covers profession of legal, medical, engineering, architectural, accountancy, company secretary, technical consultancy, interior decoration, authorised representative, film artist or information technology.

Case Laws on Section 44AA

Watch our Video on Section 44AB