## Compulsory Maintenance of Books of Account — Section 44AA
### Four categories of persons liable to maintain books
1. Persons carrying on notified professions (Note 1).
2. Persons carrying on business/profession other than notified professions (Note 2).
3. Persons declaring income lower than presumptive income under Section 44AE, 44BB, or 44BBB.
4. Persons to whom Section 44AD(4) applies.
### Note 1 — Notified Professions [Section 44AA(1)]
| Gross receipts | Books / records to maintain |
|---|---|
| Exceed ₹1,50,000 in all 3 preceding years (existing), or likely to exceed ₹1,50,000 in the current year (newly set up) | Maintain as per Rule 6F: Cash book, Journals (for accrual basis), Ledgers, copies of bills > ₹25, original bills for values > ₹50, payment vouchers if value ≤ ₹50. Doctors additionally maintain daily case registers and inventory registers. |
| Other cases | Maintain reasonable records for the A.O. to compute total income. |
### Note 2 — Other than Notified Professions [Section 44AA(2)]
| Assessee Type | Existing B/P | New B/P |
|---|---|---|
| Individual / HUF | Income > ₹2,50,000 or Turnover > ₹25,00,000 (in any of the 3 preceding years) | Income likely > ₹2,50,000 or Turnover likely > ₹25,00,000 in the current year |
| Others | Income > ₹1,20,000 or Turnover > ₹10,00,000 (in any of the 3 preceding years) | Income likely > ₹1,20,000 or Turnover likely > ₹10,00,000 in the current year |
### Penalty — Section 271A
₹25,000 penalty for failure to maintain or retain the required books.
### Notified professions include
Legal, medical, engineering, architectural, accountancy, technical consultancy, interior decoration, authorised representative, film artist (actor, cameraman, director, music director, art director, editor, singer, lyricist, story/screenplay/dialogue writer, dress designer), company secretary, and information technology professionals.
### Place & retention
- Place: Principal place of business (if single) or the respective place for each business/profession (if multiple).
- Retention period: Minimum 6 years from the end of the relevant assessment year.