Question:
According to Section 44AA(2)(i) of the Income-tax Act, 1961, a person carrying on business must maintain books of account if income from business or profession exceeds:
According to Section 44AA(2)(i) of the Income-tax Act, 1961, a person carrying on business must maintain books of account if income from business or profession exceeds:
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Section 44AA → Books of accounts mandatory if income>₹1,20,000 or turnover>₹10 lakh.
Updated On: Nov 30, 2025
- ₹1,20,000
- ₹50,000
- ₹5,00,000
- ₹10,00,000
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The Correct Option is A
Solution and Explanation
Step 1: Understanding Section 44AA(2)(i).
This provision mandates compulsory maintenance of books of account by certain professionals and businesses depending on income or turnover levels.
Step 2: Income limit.
If the income from business or profession exceeds ₹1,20,000 in any of the three preceding years, the assessee must maintain books.
Step 3: Conclusion.
Therefore, the correct income threshold is ₹1,20,000.
This provision mandates compulsory maintenance of books of account by certain professionals and businesses depending on income or turnover levels.
Step 2: Income limit.
If the income from business or profession exceeds ₹1,20,000 in any of the three preceding years, the assessee must maintain books.
Step 3: Conclusion.
Therefore, the correct income threshold is ₹1,20,000.
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