44ae & 44ad

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Nishtha Narielwala (Querist)
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27 February 2013 Hi!
If an assessee owns 1 truck & runs 1 truck on hire, under the same business name, can the income from the owned truck be shown under section 44AE & that from the rented truck under section 44AD at the same time?

Kindly Help!

Thank you!

Ankit

Ankit (Expert)
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27 February 2013 Dear Nishtha,

I think it should be allowed since there is no specific restriction to availing of 44AD an AE together.

the restriction is only in availing of deduction under sections 30-38

But if the truck is taken on hire purchase, then it is deemed to be owned by the assessee and hence, the deduction under 44AE should be taken.

- Ankit

Nishtha Narielwala

Nishtha Narielwala (Querist)
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27 February 2013 Thank u Ankit!
The other truck is not taken on hire purchase the assessee pays monthly rentals for it!

Ankit

Ankit (Expert)
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27 February 2013 You are welcome Nishtha,

If that is case...then you can claim both 44AD and 44AE together since there is no restriction in the Act on doing so.

- Ankit

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