Special provision for computing profits and gains of business of plying, hiring or leasing goods carriages
To whom the provision of section 44AE are applicable ?
The provision of this Section is applicable to every person (i.e. Individual/HUF/Firm/LLP/Company)
Eligible Business
Who is engaged in the business of plying, hiring or leasing such goods carriages and who does not owns not more than 10 goods carriages at any time during the previous year.
Presumed Income
For Heavy Goods Vehicle
Higher of the followings:-
✓ Rs.1000 per ton of gross vehicle weight or unladen weight for every month or part of a month during which the heavy goods vehicle is owned by the assessee in the previous year, or
✓ An amount claimed to have been actually earned from such vehicle
Other than Heavy Goods Vehicle
Higher of the followings:-
✓ Rs.7500 for every month or part of a month during which the goods carriage is owned by the assessee in the previous year, or
✓ An amount claimed to have been actually earned from such Goods carriage
Important Points
✓ No deduction shall be allowed under section 30 to 38 (including Depreciation or Unabsorbed Depreciation)
However, where the assessee is a firm, the salary and interest paid to its partners shall be deducted from the income computed under this section subject to the condition and limits specified in section 40(b)
✓ To compute presumptive income, ownership is relevant. Actual put to use is not relevant.
✓ An assessee, who is in possession of a goods carriage, whether taken on hire purchase or on instalments and for which the whole or part of the amount payable is still due, shall be deemed to be the owner of such goods carriage.
✓ Assessee may claim lower income than presumptive, after maintaining Books of Accounts and getting Tax Audit.
✓ Heavy Goods Vehicle means any goods carriage, the gross vehicle weight of which exceeds 12000 Kgs.
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