SECTION 44AA l MAINTENANCE OF ACCOUNTS BY PROFESSIONALS

407-408. Requirement of maintaining books of account by professionals to apply in respect of accounting years commencing on or after April 1, 1976

1. Section 44AA casts a legal obligation for maintenance of books of account by persons specified therein. This section has come into force with effect from April 1, 1976.

2. The Board have examined the question as to the date from which provisions of section 44AA are applicable. The requirement contained in sub-sections (1) and (2) of section 44AA regarding maintenance of books of account and documents will apply only in relation to books of account and documents in respect of accounting years commencing on or after April 1, 1976.

Circular : No. 205 [F. No. 201/50/76-IT(A-II)], dated 27-7-1976.

409. ‘Other professions’ notified under sub-section (1) for the purposes of compliance of requirement

NOTIFICATION 1

In exercise of the powers conferred by sub-section (1) of section 44AA of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby notifies for the purposes of the said sub-section the following professions, namely :

(a)  the profession of authorised representative; and

(b)  the profession of film artist.

Explanation : In this notification,—

(a)  “authorised representative” means a person, who represents any other person, on payment of any fee or remuneration, before any Tribunal or authority constituted or appointed by or under any law for the time being in force, but does not include an employee of the person so represented or a person carrying on legal profession or a person carrying on the profession of accountancy;

(b)  “film artist” means any person engaged in his professional capacity in the production of a cinematograph film, whether produced by him or by any other person, as—

  (i)  an actor;

(ii)  a cameraman;

(iii)  a director, including an assistant director;

(iv)  a music director, including an assistant music director;

(v)  an art director, including an assistant art director;

(vi)  a dance director, including an assistant dance director;

(vii) an editor;

(viii)       a singer;

(ix)  a lyricist;

(x)  a story writer;

(xi)  a screen-play writer;

(xii) a dialogue writer; and

(xiii)       a dress designer.

Notification : No. SO 17(E), dated 12-1-1977.

NOTIFICATION 2

In exercise of the powers conferred by sub-section (1) of section 44AA of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby notifies the profession of Company Secretary for the purpose of the said sub-section.

Explanation : In this notification, ‘Company Secretary’ means a person who is a member of the Institute of Company Secretaries of India in practice within the meaning of sub-section (2) of section 2 of the Company Secretaries Act, 1980 (56 of 1980).

Notification : No. SO 2675, dated 25-9-1992.

Notification 3

In exercise of the powers conferred by sub-section (1) of section 44AA of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby notifies the profession of information technology for the purposes of the said sub-section.

Notification : No. SO 385(E), dated 4-5-2001.