Income from good carriage vehicle do not go with 44AE

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A client with three heavy carriage vehicles opted for Section 44AE last year but now wishes to withdraw due to high tax liability. The query is whether they can file an Income Tax Return (ITR) 3 without an audit, as they lack expense documentation. It's clarified that filing ITR 3 with books of accounts necessitates a tax audit, and for carriage owners, there's no threshold limit for this audit; declaring profit less than the deemed profit under Section 44AE is the sole trigger.

VIKAS KUMAR SHARMA

VIKAS KUMAR SHARMA (Querist)
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03 September 2021 sir,
one of client having 3 heavy carriage vehicle gross weight 25 tons each. Last year opted 44AE for said vehicle. But now he do not wish to go with 44AE due to heavy tax liability.
can we file ITR 3 without audit of account (no documents of expenses) ?
please help to resolve the issue IT BECOMES THE PROBLEM OF ALL CARRIAGE VECHICLE OWNER
regards
vikas

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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03 September 2021 You can file ITR 3 with books of accounts, but tax audit will be mandatory.

VIKAS KUMAR SHARMA

VIKAS KUMAR SHARMA (Querist)
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03 September 2021 SIR
for audit required any threshold limit ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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03 September 2021 For carriage owner's there is no threshold limit for tax audit; just declaration of profit less than the deemed profit as per sec. 44AE is the only cause.

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