Section 62
Section 62: maintenance of books of account
Section 62 is the Income-tax Act, 2025's rule on who must keep books of account for tax purposes. It applies compulsorily to people carrying on a "specified profession," and to other businesses or professions once their income or turnover crosses defined thresholds - this is the successor to what taxpayers used to know as Section 44AA of the old Act.
This explanation is AI-assisted and pending review by our CA/CS team. It is general information, not professional advice - always cross-check against the bare law text above or talk to our tax team for guidance specific to your situation.
Who must maintain books
Section 62(1) requires books of account to be kept and maintained, sufficient to enable the Assessing Officer to compute total income, by:
- Any person carrying on a specified profession, always; or
- Any person carrying on business, or any other profession, if the conditions in Section 62(2) are met.
The income/turnover thresholds for other businesses and professions
| Category | Threshold |
|---|---|
| General case | Income from business or profession exceeds ₹1,20,000, or sales/turnover/gross receipts exceed ₹10,00,000, in any one of the three tax years immediately preceding the relevant tax year |
| Newly set-up business/profession | Income is likely to exceed ₹1,20,000, or sales/turnover/gross receipts likely to exceed ₹10,00,000, during the tax year in which it is set up |
| Presumptive-scheme assessee claiming lower income | Where an assessee under Section 58(2) or Section 61(2) (Table Sl. Nos. 4 and 5) claims income lower than the deemed profits under those sections |
| Individual or HUF (modified thresholds) | Income from business or profession exceeds ₹2,50,000, or sales/turnover/gross receipts exceed ₹25,00,000 |
What counts as a "specified profession"
Section 62(4) defines "specified profession" as legal, medical, engineering, architectural, accountancy, technical consultancy, interior decoration, information technology or company secretary practice, or any other profession the Board notifies for this purpose.
Section 62(3) authorises the Board to prescribe the books and documents to be maintained (including inventories where necessary), the particulars they must contain, the form, manner and place of maintenance, and the retention period.
Frequently asked questions
Do all professionals have to maintain books of account?
Anyone carrying on a "specified profession" - legal, medical, engineering, architectural, accountancy, technical consultancy, interior decoration, IT or company secretary practice, or a Board-notified profession - must always maintain books under Section 62(1)(a).
At what income level does an ordinary business have to start maintaining books?
For most assessees, once income from the business/profession exceeds ₹1,20,000 or turnover exceeds ₹10,00,000 in any of the preceding three years (or is likely to in a newly set-up business). For individuals and HUFs, these thresholds are higher - ₹2,50,000 of income or ₹25,00,000 of turnover.
How does Section 62 connect to the presumptive taxation sections?
If an assessee taxed under Section 58(2) or Section 61(2) (Table Sl. Nos. 4 and 5) declares income lower than the deemed presumptive profit, that alone triggers the books-of-account requirement under Section 62(2)(c), regardless of the income/turnover threshold.
Related sections
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Get help setting up compliant books of accountLast updated 9 September 2026