Is 44AA compulsory?
The persons who are filling their return of income under the presumptive income scheme like under section 44AD or 44ADA or 44AE or 44AF etc are not require to compulsorily maintain books of account u/s 44AA.
Who is required to maintain books of accounts US 44AA?
As per the provisions of section 44AA of Income Tax Act, every person carrying on the below profession must compulsorily maintain books of accounts: Legal. Medical. Engineering.
What is the limit for 44AA?
Audit Requirements
| Category of taxpayer | When audit is compulsory |
|---|---|
| An individual involved in a profession | Gross receipts exceed Rs.25 lakh (Rs.50 lakh from FY2016-17) |
| An individual involved in a business | Gross receipts, turnover, or total sales exceeding Rs.1 crore (Rs.2 crore from FY2016-17) |
Are you liable to maintain accounts as per section 44AA means?
1) Maintenance of accounts by certain persons carrying on profession. then assessee is required to maintain such book of account as may be prescribed (i.e. prescribed under Rule 6F), otherwise he is required to maintain such books of accounts or documents from which Assessing Officer is able to complete the assessment.
Is it compulsory to maintain books of accounts?
If the sale/turnover/gross receipts from the business or profession is more than Rs. 25,00,000 or the income from business or profession is more than Rs. 2,50,000 in any of the 3 preceding years, then books of accounts will be compulsorily maintained.
Which profession is not specified profession under section 44AA?
As per section 44AA and rule 6F, the profession of “Teacher” is a non-specified profession and, hence, the provisions of section 44AA are applicable to her and she is either liable to maintain such books of account and other documents as may enable the Assessing Officer to compute her taxable income under the Income- …
Which profession is non specified profession u/s 44AA?
44AA(1)] ie CA, doctors, Lawyers we can opt for presumptive taxation u/s 44ADA by offering 50% of gross receipt as taxable income. There are certain other professions which are not specified u/s44AA(1) such as sport coaches or qualified Teacher (who undertakes tutorial), Marketing advisor, Freelancers.
Who are not required to maintain books of accounts?
So a person who is not engaged in any business and derives his income from salary etc is not required to maintain any books of accounts. As far as the persons engaged in business or profession is concerned, they can be classfied in two parts.
How many years are books of accounts maintained?
6 years
INCOME-TAX ACT, 1961
Assessees are required to preserve the specified books of account for a period of 6 years from the end of the relevant assessment year, i.e., for a total period of 8 previous years.
What is specified profession u/s 44AA 1?
For the purpose of section 44AA and Rule 6F legal, ‘specified professions’ includes … medical, engineering, architectural, accountancy, technical consultancy, or interior decoration or any other notified profession [i.e., authorised representative, film artist, company secretary and information technology].
How many years can income tax go back?
The amended law allows the department to go back 11 years (i.e. 10 years from the end of the assessment year in which the notice is received) if total income that has escaped tax is suspected to be more than Rs 50 lakh; it’s four years if escaped income is below Rs 50 lakh.
Is not filing tax returns a crime?
Failing to file a tax return can be classified as a federal crime punishable as a misdemeanor or a felony. Willful failure to file a tax return is a misdemeanor pursuant to IRC 7203. In cases where an overt act of evasion occurred, willful failure to file may be elevated to a felony under IRC 7201.
Can I file ITR for last 10 years?
Individuals can file returns for the previous years. This can only be done for the two years preceding the current financial year for which the returns have to be filed. Taxpayers are provided a two year period during which returns can be filed.
How many years can you legally not file taxes?
There is generally a 10-year time limit on collecting taxes, penalties, and interest for each year you did not file. However, if you do not file taxes, the period of limitations on collections does not begin to run until the IRS makes a deficiency assessment.
What happens if you don’t file taxes for 5 years?
Penalties can include significant fines and even prison time. Luckily, the government has a limited amount of time in which it can file a criminal charge against you for tax evasion. If the IRS chooses to pursue charges, this must be done within six years after the date the tax return was due.
What will happen if I don’t file ITR?
Non-filing of ITR can lead to imprisonment, where the term can vary between 3 months and 2 years. Non-filing of ITR can lead to imprisonment, where the term can vary between 3 months and 2 years.
Is it a crime to not file a tax return?
It’s illegal.
The law requires you to file every year that you have a filing requirement. The government can hit you with civil and even criminal penalties for failing to file your return.
What happens if you never file taxes?
If you fail to file your taxes on time, you’ll likely encounter what’s called a Failure to File Penalty. The penalty for failing to file represents 5% of your unpaid tax liability for each month your return is late, up to 25% of your total unpaid taxes. If you’re due a refund, there’s no penalty for failure to file.
At what age can you stop filing taxes?
65
There is no magic age at which you’re allowed to stop filing taxes with the IRS. However, once you’re over the age of 65, your income thresholds that determine if you’re required to file will change.
Is it a crime to not file taxes?
It’s illegal. The law requires you to file every year that you have a filing requirement. The government can hit you with civil and even criminal penalties for failing to file your return.
Is it compulsory to file ITR every year?
If the taxes deducted/ deposited during the financial year exceeds the actual tax liability, then ITR filing is mandatory for individuals to claim income tax refund. This is mandatory even if gross total income is below the basic exemption limit, depending on the income tax regime chosen.
What if I have not filed ITR for last 5 years?
Consequences of Not Filing Income Tax Returns for Past Years
Penalty – Individuals who have failed to file their tax returns for previous years before the cut off date are liable to pay a penalty of Rs 5000, which will be levied by the taxation authorities.
Can you go to jail for filing taxes wrong?
You cannot go to jail for making a mistake or filing your tax return incorrectly. However, if your taxes are wrong by design and you intentionally leave off items that should be included, the IRS can look at that action as fraudulent, and a criminal suit can be instituted against you.
How many years can you go without filing taxes?