Head of income for taxi driver

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 August 2012 Assessee is a Taxi Driver. He is not employed with any one. He is not an owner of the taxi. He drives the taxi on a daily basis. He pays to the owner of the taxi on a kilometer basis & the maount left over from total fare received, is his income For eg. If he drives 50 km a day, Total fare received Rs. 600, amount paid to taxi owner say Rs. 5 per KM i.e. Rs. 250 (50kn x Rs. 5).

So his income = Total Taxi Fare Received from Passengers - Amount paid to Owner
= 600 - 250
= 350

According to me, his income is taxable under the head Profit / Gain from Business / Profession as he is a professional driver.

He is not taxable under the Head Salary because there is no employer - employee relationship & driver may drive different taxi daily, which may be owned by different owner.

He is also not taxable under the Head Income from Other Sources as he is driving the taxi on a regular & full time basis.

Your view please.

Under which head his income will be taxable?

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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13 August 2012 Income will be taxable under "busines & profession"
Total revenue will be total amount received by you and you will get the deduction of payment made to taxi owners.
Balance amount shall be taxable under business & profession.
You can also get the other expenditure incurred to earn the income.

Querist : Anonymous

Querist : Anonymous (Querist)

13 August 2012 Thanks Amit for your prompt reply

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