Hiring vehicle to carrying passengers to companies tax treat

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MANJUNATHA M.R (Querist)
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27 November 2012 Dear Experts, One my friend having TATA SUMO hiring to carry passengers to companies on monthly basis he received money deducting TDS. They issued TDS Certificate 16A (194c payment on contractors).Income from hiring vehicle is presumptive income or business income and which ITR he should file and what is the percentage of profit he can shown in the return. Please advise me Thanks in advance.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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27 November 2012 He can opt for presumptive taxation u/s 44AD and show 8% of gross receipt as his income. NO expense shall be allowed from such income.

MANJUNATHA M.R

MANJUNATHA M.R (Querist)
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27 November 2012 Dear Siddhartha Bhardwaj Sir Shall I shown expenses on gross receipts to prepare P & L Account. If yes what are the expenses admissable u/s 44AD and what is percentage of depreciation? it is a commercial vehicle or normal vehicle under IT ACT 1961

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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27 November 2012 1. As I said NO expenses are allowed from such income. You DO NOT have to prepare a Profit & Loss Account for income tax purpose.

2. Depreciation shall NOT be allowed separately. It is deemed to have been allowed.

MANJUNATHA M.R

MANJUNATHA M.R (Querist)
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27 November 2012 Dear Sir He is planning to construct house by availing housing loan from nationalised bank. For this purpose bank people have ask P & L Account and balance Sheet. What is the procedure? Is it Computation of total Income is enough? Please clarify me.
Thanks

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