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Sec- 44ae [plying, hiring, or leasing goods cairrages]

Anuj Mehta (Assistant) (221 Points)

31 March 2013

Individuals:

A: 9 goods cairrages

B: 9 goods cairrages

A (HUF): 9 goods cairrages

Partnership firm (Partners- A & B):

AB Firm: 9 goods cairrages

Can all of them be assessed seperately u/s 44AE? Would your ans be different it were AB Pvt Ltd ?

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3 Replies

CA CS Nirmal Pagaria (Fresher) (90 Points)
Replied 31 March 2013

Anuj Ji,

Under section 44AE An assessee engaged in plying, hiring, or leasing of goods carriage& Assessee owned not more than 10 vehicles during previous year. Then this provision sall be applicable. Under this provision u may declare presumptive income of assessee. It is applicable on all assesee even if they are resident or not.

In ur case u can assess income of above business in sec. 44AE including company. Further no deduction would be allowed us 30 to 38. however in case of partnership, further remuneration, interest(us 40b, 184,185) shall be allowed.

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Anuj Mehta (Assistant) (221 Points)
Replied 31 March 2013

what if they incorporate another partneship firm and again own 9 goods cairrages?

so in all 3 individuals & 2 partnership firms.. all below 10 vehicles. can all of the assessee be assessed u/s 44AE?

wont be like evading tax or something? & its a Partnership firm (Partner & Individual are the same.. do seperate entity like in companies)

Nazia (Asst Manager - Finance) (139 Points)
Replied 01 April 2013

Assessment of firm & individuals are separate as per Income tax act, though profit of firm is clubbed in partner's income, firm & partners can be individually assessed under sec 44AE. No harm.

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