The Statutory Brief

IT Act 1961 → 2025 / Section 44AA

Business income

Section 44AA → Section 62

Maintenance of books of account

Section 44AA of the old Income-tax Act, 1961 · new section 62 under the Income-tax Act, 2025

New reference Section 62

Income-tax Act, 1961Section 44AA

  • Specified professionals must maintain books
  • Others: if income exceeds ₹1.2 lakh or turnover ₹10 lakh in any of three preceding years
  • Individuals/HUFs: ₹2.5 lakh income / ₹25 lakh turnover
  • Also where presumptive income is claimed lower

Applies to FY 2025-26 (AY 2026-27) and earlier years.

Income-tax Act, 2025Section 62

  • Same rules, now section 62
  • Thresholds ₹1,20,000 / ₹10 lakh; ₹2,50,000 / ₹25 lakh for individuals and HUFs
  • Specified professions now include IT and company secretary
  • Books, particulars and retention period to be prescribed (62(3))

Applies from tax year 2026-27 (from 1 April 2026).

What changed

Renumbered; thresholds unchanged.

Practice notes

  • Failure to maintain books attracts penalty under the new penalty provision (old 271A → 441).

These are summaries, not the statutory text. Read the bare Act for both sections on the Income Tax Department's official site, which also has a side-by-side comparison utility.

Frequently asked

What is the limit for maintaining books under the new Income Tax Act 2025?

Section 62: income above ₹2.5 lakh or turnover above ₹25 lakh for individuals/HUFs (₹1.2 lakh / ₹10 lakh for others); specified professionals must always maintain books.

What is section 44AA called in the new Income-tax Act, 2025?

Section 44AA of the Income-tax Act, 1961 corresponds to Section 62 of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).

What changed in section 44AA under the new Income Tax Act?

Renumbered; thresholds unchanged.

Is section 44AA still applicable for FY 2025-26?

Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 44AA of the 1961 Act. Section 62 of the 2025 Act applies from tax year 2026-27.

Related sections

44AB→63Tax audit of accounts for businesses and professions above turnover limits44AD→58Presumptive taxation for small businesses and professionals40A(3)→36Disallowance of cash expenses above ₹10,000 a day (and related-party payments)