New Delhi, April 12 -- Under Section 44ADA of the Income Tax Act, 1961, an assessee opting for presumptive taxation is not required to maintain books of account, provided income is declared at 50% or more of gross receipts. This relaxation is a key feature of the presumptive scheme. Accordingly, declaring income at 50% without maintaining detailed expense records is in line with the provisions and, by itself, should not trigger scrutiny.

If you choose to declare income below 50% of your gross receipts under Section 44ADA, you are required to maintain prescribed books of account as per Section 44AA. These include cash book, journal, ledger, copies of bills (for transactions exceeding Rs.250) and original bills (for expenses exceeding Rs.5...