BooksIQBooks of account are MANDATORY if (a) profession-income exceeds ₹1.5 L OR profession turnover exceeds ₹25 L in any of 3 preceding years; (b) business income exceeds ₹1.2 L OR turnover exceeds ₹10 L (₹2.5 L / ₹25 L for individuals / HUF). Higher thresholds for some professions.
Key points
- §44AA mandates maintenance of books of account by: (1) SPECIFIED PROFESSIONS (legal, medical, engineering, architectural, accountancy, technical consultancy, interior decoration, authorised representative, film artist, company secretary, information technology) — books MUST be kept where TOTAL GROSS RECEIPTS from the profession exceed ₹1,50,000 in ALL THREE preceding years (₹50,000 if newly setup) — Rule 6F prescribes the specific books (cash book, journal, ledger, copies of bills, original bills > ₹50).
- (2) OTHER BUSINESS or NON-SPECIFIED PROFESSION — books MUST be kept if INCOME exceeds ₹1,20,000 (₹2,50,000 for individuals and HUFs) OR TURNOVER exceeds ₹10 lakh (₹25 lakh for individuals and HUFs) in any one of the THREE preceding years.
- (3) PRESUMPTIVE assessees (44AD / 44ADA / 44AE) who DECLARE PROFITS LOWER than the presumptive rate AND whose income exceeds the basic exemption limit — must maintain books AND get a §44AB audit.
- Books must be kept for SIX YEARS from the end of the relevant AY.
- Penalty under §271A: ₹25,000.
Reference: §44AA read with Rule 6F, ITA 1961 — under ITA 2025 (FY 26-27 onwards), this is §62
This page is general information for Indian businesses, current as of the
financial year shown above — not legal or tax advice. Tax law changes,
and how a provision applies depends on your specific facts. Confirm the
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