Income-tax Act, 2025, Section 62 (Old Section - 44AA): Maintenance of books of account

Section 44AA of the Act requires certain persons to maintain books of account. The provisions of this section read with Rule 6F of the Income Tax Rules, 1962 relate to maintenance of books by assessee as well as prescribe the list of books to be maintained.

The provisions of Sec 44AA are as:

44AA. (1) Persons carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or authorised representative or film artist are required to maintain books of account and other documents as may enable the Assessing Officer to compute his total income.

If their gross receipts exceed Rs. 1.5 Lakh in all the three years preceding the previous year then books prescribed in Rule 6F are required to maintained.

44AA. (2) Every person carrying on business or profession [not being a profession referred to in sub-section (1)] shall maintain books of account -

i) if his income from business or profession exceeds 1.2 Lakh or his total sales, turnover or gross receipts, as the case may be, exceeds 10 Lakh 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 1.2 Lakh or his total sales, turnover or gross receipts, as the case may be, in business or profession are or is likely to exceed 10 Lakh ; 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.

[Provided that in the case of a person being an individual or a HUF (Hindu undivided family), the provisions of clause (i) and clause (ii) shall have effect, as if for the words “1.2 Lakh”, has been substituted by the words “2.5 Lakh”.

Provided further 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  “10 Lakh”, has been substituted by the words “25 Lakh”.