Applicability of Section 44AD in Case of Truck Owner

This query is : Resolved

Sachin Agrawal (Querist)
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09 December 2009 One of Assessee is owner of 9 trucks and has filed his income tax return u/s 44AE even though his gross receipts are more than Rs. 40 Lacs. Kindly suggest if he is liable for tax audit u/s 44AB.

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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09 December 2009 Section 44AE of the Income Tax Act is applicable.

Since the assessee is owning upto 10 trucks (heaving vehicle) hence his per month (or part of month) income of per truck shall be as under :

Rs 3500*9 =31500
For full year income 31500*12 = 3,78,000/-

No tax audit is applicable even if gross reeipts is more than Rs.40.00 Lacs.

With effect from 01 04 2011; the above income per truck shall be deemed at Rs.5,000/- per month.

Considering the illiterate persons running the trucks; the above provisions have been introduced in the Act.

Ca Rakhecha
Surat.

Sachin Agrawal

Sachin Agrawal (Querist)
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09 December 2009 Is there any Case Law regarding the same.

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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10 December 2009 .

Anjani Pratap Tiwari

Anjani Pratap Tiwari (Expert)
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10 December 2009 This is Income tax rule and not a case law.

CMA Arif Farooqui

CMA Arif Farooqui (Expert)
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10 December 2009 agree with experts

Saurabh Aggarwal

Saurabh Aggarwal (Expert)
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21 July 2010 Since, trucks are less than 10, tax audit is not required.

If trucks are more than 10, then tax audit is required.

If trucks are less than 10, then tax audit is required if assessee declares that his income is below threshold limit of Rs. 3150/ Rs. 3500 (Now Rs. 5000) as the case may be.