• Does 'Web Content Writer' have to maintain Book of Accounts?

I have read that only the following professions/freelancers have to maintain book of accounts under 44AA:

Legal
Architectural
Accountancy
Medical
Engineering
Technical consultancy
Interior decoration
Authorized representative
Film artist

The same people also can file under 44ADA
Source: https://www.coverfox.com/personal-finance/tax/section-44aa/

MY QUESTION
Now my question is this. If one is from a profession (ex content writer) that does not belong to any of the professions above, does he have to still maintain book of accounts, or is he not required to maintain regular books (not under 44AA)?

I ask because under ITR3, there is a field that asks "are you not required to maintain book of accounts under 44AA?"

Kindly read carefully and give me a specific answer please. 
Many thanks.
Asked 11 days ago in Income Tax

Hi,

 

Even if your profession is not covered under any of the above profession, then also you may be required to maintain books of accounts as per section 44AA depending upon the turnover and income of your profession.

 

please refer below guidelines to assess whether you are required to maintain books of accounts or not:

(2) Every person carrying on business or profession [not being a profession referred to in sub-section (1)] shall,—

 

(i) if his income from business or profession exceeds one lakh twenty thousand rupees or his total sales, turnover or gross receipts, as the case may be, in business or profession exceed or exceeds ten lakh rupees in any one of the three years immediately preceding the previous year; or

 

(ii) where the business or profession is newly set up in any previous year, if his income from business or profession is likely to exceed one lakh twenty thousand rupees or his total sales, turnover or gross receipts, as the case may be, in business or profession are or is likely to exceed ten lakh rupees, during such previous year; or

Lakshita Bhandari
CA, Mumbai
5275 Answers
364 Consultations

5.0 on 5.0

Section 44AA covers all persons carrying on business or profession subject to limit of turnover or gross receipts. You are also covered by section 44AA subject to fulfillment of turnover or gross receipts limit. 

Vivek Kumar Arora
CA, Delhi
3839 Answers
250 Consultations

5.0 on 5.0

Hello,

 

In relation to any other person that does not belong to any of the professions above(44ADA), the requirement of compulsory maintenance of books of accounts applies if -

either the income from business or profession exceeds Rs 120000 or the turnover or gross receipts exceed Rs 10 Lakhs in any one of the three years immediately preceding the previous year.

I hope this answer satisfies your requirements. For a detailed resolution of your query, you can contact us directly or take a phone consultation.

 

Regards,

CA Hunny Badlani

Hunny Badlani
CA, Madhya Pradesh
2530 Answers
8 Consultations

5.0 on 5.0

Section 44AA prescribes some specific books/special books which are compulsorily required to be maintained by specified professionals as mentioned by you in the list. But those professionals who are not covered in that list are also required to maintain such books (other than specific books/special books) which enables AO to compute taxable income if limits specified in section are crossed.

Hence in your case you are required to maintain such books which can be used by AO (if required) to compute your income and the limits are as follows:

 

A) Individual/HUF:

Income > 2,50,000

or

Turnover > 25,00,000

In ANY of the 3 PPY.

 

B) For Others (Company, Firm etc):

Income > 1,20,000

or

Turnover > 10,00,000

In ANY of the 3 PPY.

Satish Dholwani
CA, Jodhpur
9 Answers

5.0 on 5.0

Hi,

Every assessee being an individual or HUF is required to maintain books of accounts if his income from business or profession exceeds Rs. 2,50,000 or his total sales exceeds Rs. 25,00,000. This is irrespective of the fact from which profession or business you are dealing in. Only in case of specified professions as you mentioned above these limit donot apply to them, they have to mandatorily maitain books of accounts.

Only in case where person declares his income in section 44AD, then only there is no requirement of maintaining books of accounts.

In case you only have income from this Web content writing and you fulfill conditions of section 44AD, and declares the income in this section then ITR 4 will be applicable and there will be no requirement of maintaining books of accounts.

Hope i am able to solve your query

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Thanks & Regards

Shubham Bansal
CA, Amritsar
33 Answers

5.0 on 5.0

If you wish to go strictly by law then a person mentioned below under section 44AA also have to maintain books of accounts even if he is not covered under specific profession.

Thus, if you have a business or profession and total sale exceed Rs. 10 lakh or profit exceed Rs. 2.5 lakh you have to maintain books.

Every person carrying on business or profession [not being a profession referred to in sub-section (1)] shall,—

(i)   if his income from business or profession exceeds one lakh twenty thousand rupees or his total sales, turnover or gross receipts, as the case may be, in business or profession exceed or exceeds ten lakh rupees in any one of the three years immediately preceding the previous year; or

(ii)  where the business or profession is newly set up in any previous year, if his income from business or profession is likely to exceed one lakh twenty thousand rupees or his total sales, turnover or gross receipts, as the case may be, in business or profession are or is likely to exceed ten lakh rupees, during such previous year; or

(iii) where the profits and gains from the business are deemed to be the profits and gains of the assessee under section 44AE or section 44BB or section 44BBB, as the case may be, and the assessee has claimed his income to be lower than the profits or gains so deemed to be the profits and gains of his business, as the case may be, during such previous year; or

(iv) where the provisions of sub-section (4) of section 44AD are applicable in his case and his income exceeds the maximum amount which is not chargeable to income-tax in any previous year,

keep and maintain such books of account and other documents as may enable the Assessing Officer to compute his total income in accordance with the provisions of this Act:

Provided that in the case of a person being an individual or a Hindu undivided family, the provisions of clause (i) and clause (ii) shall have effect, as if for the words "one lakh twenty thousand rupees", the words "two lakh fifty thousand rupees" had been substituted :

 

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement. You can even book phone consultation for further personal assistance.

Thank you.

Naman Maloo
CA, Jaipur
3703 Answers
40 Consultations

5.0 on 5.0

Its mandatory for the persons carrying on specified professions to maintain books of accounts. For others, its not mandatory and is only optional, as long as the receipts do not exceed Rs 50 Lakhs, the threshold limit for tax audit. 

B Vijaya Kumar
CA, Hyderabad
913 Answers
79 Consultations

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