Income from Car lease and tDS deducted under section 194IA

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This discussion clarifies how to declare income from a car lease where TDS was deducted under section 194IA. It explains that while code '08001' covers both sections 44AD and 44AE, car leases are specifically assessed under section 44AD as presumptive income, not 44AE (which is for goods vehicles). You don't need to file a full Profit & Loss account or Balance Sheet if assessed under 44AD, but certain mandatory details and column 6 of the Balance Sheet must be completed.

SHIVANI RASTOGI

SHIVANI RASTOGI (Querist)
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25 September 2021 Could you please confirm where to reflect income received from Car lease & tDS deducted under section 194IA, if I treat it as a Business income then what will be the nature of business code

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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25 September 2021 Declare it under head PGBP; code '08001' ...

SHIVANI RASTOGI

SHIVANI RASTOGI (Querist)
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25 September 2021 Thankyou Sir, please confirm code 08001 under 44AD as this code cover 44AD/AE?
Is it necessary to fill BS or its ok if we fill no account case in BS

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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25 September 2021 Though code '08001' pertains to both sec 44AD & 44AE; but car being passenger vehicle, can only be assessed under sec.44AD (under presumptive assessment). Not being goods vehicle cannot be declared under sec.44AE of the act.
No need of filling P&L & BS, when assessed under sec. 44AD of the act, but fill column 6 in BS & mandatory details in P&L acc...

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