India - Income Tax Act 2010 - Saarc

1.285 CH. IV - COMPUTATION OF BUSINESS INCOME S. 44AAcomputing the income under any other provision of this Act and not being in thenature of capital expenditure) solely for the purposes of protection or advancementof the common interests of its members, the amount so fallen short(hereinafter referred to as deficiency) shall, subject to the provisions of thissection, be allowed as a deduction in computing the income of the associationassessable for the relevant assessment year under the head “Profits and gains ofbusiness or profession” and if there is no income assessable under that head orthe deficiency allowable exceeds such income, the whole or the balance of thedeficiency, as the case may be, shall be allowed as a deduction in computing theincome of the association assessable for the relevant assessment year under anyother head.(2) In computing the income of the association for the relevant assessment yearunder sub-section (1), effect shall first be given to any other provision of thisAct under which any allowance or loss in respect of any earlier assessment yearis carried forward and set off against the income for the relevant assessmentyear.(3) The amount of deficiency to be allowed as a deduction under this section shallin no case exceed one-half of the total income of the association as computedbefore making any allowance under this section.(4) This section applies only to that trade, professional or similar association theincome of which or any part thereof is not distributed to its members except asgrants to any association or institution affiliated to it.]58[Maintenance of accounts by certain persons carrying on profession or business.5944AA. (1) Every person carrying on legal, medical, engineering or architecturalprofession or the profession of accountancy or technical consultancyor interior decoration or any other profession as is notified 60 by the Board in theOfficial Gazette shall keep and maintain such books of account and otherdocuments as may enable the 61 [Assessing] Officer to compute his total incomein accordance with the provisions of this Act.(2) Every person carrying on business or profession [not being a professionreferred to in sub-section (1)] shall,—(i) if his income from business or profession exceeds 62 [one lakh twenty]thousand rupees or his total sales, turnover or gross receipts, as thecase may be, in business or profession exceed or exceeds 63 [ten lakh]rupees in any one of the three years immediately preceding theprevious year; or58. Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976.59. For relevant case laws, see Taxmann’s Master Guide to Income-tax Act.60. For specified professions, see Taxmann’s Master Guide to Income-tax Act.61. Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.1-4-1988.62. Substituted for “forty” by the Finance (No. 2) Act, 1998, w.e.f. 1-4-1999. Earlier “forty” wassubstituted for “twenty-five” by the Finance Act, 1992, w.e.f. 1-4-1993.63. Substituted for “five hundred thousand” by the Finance (No. 2) Act, 1998, w.e.f. 1-4-1999.Earlier “five hundred thousand” was substituted for “two hundred and fifty thousand” bythe Finance Act, 1992, w.e.f. 1-4-1993.