44AA & 44AD, Income Tax

[Tushar More]

Dear All,

As we all know, that maintenance of Books of Accounts u/s 44AA is not required, if a person opts for presumptive taxation u/s 44AD, and a person opting for such scheme may even declare income greater than the income deemed u/s 44AD (i.e., income greater than deemed 8% of turnover). So in case a person opting for 44AD declares income greater than 8%, is it necessary for him to mantain books of accounts. The law is silent in this regard.

However, it is specifically mentioned in sec 44AA that, if a person declares income lower than income deemed u/s 44AD, and his income is greater than the minimum taxable limit, than he has to maintain books u/s 44AA.

What if the person declares income greater than 8%, which is beyond the minimum taxable limit?

Please clarify.