9911796707
TMI BlogMaintenance of books of account: Clause 62 of the Income Tax Bill, 2025 vs. Section 44AA of the Income Tax Act, 1961X X X X Extracts X X X X X X X X Extracts X X X X ..... pe and technological advancements since the enactment of Section 44AA of the Income Tax Act, 1961. Section 44AA of the Income Tax Act, 1961, serves as the existing legal framework governing the maintenance of accounts by individuals and entities engaged in business and professional activities. This section has been instrumental in setting the standards for financial record-keeping, ensuring compliance with tax regulations, and enabling accurate income computation. Objective and Purpose The primary objective of Clause 62 is to update and refine the requirements for maintaining books of account, aligning them with contemporary business practices and technological advancements. The clause aims to enhance the accuracy of income computation, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve coverage of various sectors. Section 44AA of the Income Tax Act, 1961 * Sub-section (1): Requires individuals in specified professions to maintain books of account, similar to Clause 62, ensuring that professionals maintain adequate records for income computation. * Sub-section (2): Sets income and turnover thresholds for businesses and professions not covered under sub-section (1), with provisions for newly set-up businesses and those claiming lower income than deemed profits. * Sub-section (3) and (4): Allows the Board to prescribe the types of records to be maintained, their particulars, and retention periods, ensuring standardized practices across different sectors. Practical Implications Clause 62 of the Income Tax Bill, 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thresholds and conditions, the clause ensures that the requirements remain relevant and effective in preventing tax evasion and ensuring accurate income computation. The provision also emphasizes the use of technology in record-keeping, facilitating easier compliance and verification by tax authorities. Section 44AA of the Income Tax Act, 1961, has been instrumental in ensuring compliance with tax laws and preventing tax evasion. However, modernization is necessary to address contemporary challenges and incorporate technological advancements. By updating thresholds and conditions, the provision can remain effective in ensuring accurate income computation and compliance with tax laws. Full Text: Clause 62 Maintenance of books of ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
