Minimum income in transport buisiness

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jatin (Querist)

28 June 2014 i have transport buisiness 2 light good vehicle one in my name and other in my uncle firm name and on instalment which i pay in cash i want to know how the net taxable income is calculated or what is minimum income thai is to be declared for income tax talking into account all deductions(e.m.i maintainance,depriciation,fuel cost,driver salary and others)

and also do i need to maintain record of expenses like maintainance cost,fuel amount or we can trake it as random )

Nikhil Kaushik

Nikhil Kaushik (Expert)

28 June 2014 you have an option of offering income under presumptive taxation under section 44AE. other prepare maintain books of accounts along with proper evidence of expenses incurred and claim the actual net income..

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Rupesh Jain

Rupesh Jain (Expert)

28 June 2014 you can declare the income form truck u./s 44AE @ 4500 per month or part of month for light and rs.5000/- per month or part of month for hearvey vehicle as net income. for that no document required.

otherwise you can maintain the book of account and file return .

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jatin

jatin (Querist)

28 June 2014 what if net actual income is more than minimum value that is to be declared under sec 44ae

1. do we need to keep record of actual expense
2. if we declare minimum value as net income then is there is any issue as per it law

Nikhil Kaushik

Nikhil Kaushik (Expert)

28 June 2014 there is no problem in offering income higher than 44AE limit.

it is only where the income is less than 44AE, books are to be maintained.

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jatin

jatin (Querist)

28 June 2014 all the expense like insurance,maintainance,depriciation,fuel cost,driver cost are included in minimum value

do we simply declare minimum value as our net value and submit return

Nikhil Kaushik

Nikhil Kaushik (Expert)

28 June 2014 once you go under 44AE, it is assumed that all the expenses including depreciation have been provided. 44AE implies net taxable income.

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jatin

jatin (Querist)

28 June 2014 lastly

if i have 2 vehicle then i have to show 4500*2=9000 as my monthly taxable income
so 108000 as my anual taxable income from which 80c deductions are applicable

and file the return no issue in that

Nikhil Kaushik

Nikhil Kaushik (Expert)

28 June 2014 yes there is no issues with that...

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jatin

jatin (Querist)

01 July 2014 do we need to have current account for buisiness income or we can use savings account for that

jatin

jatin (Querist)

08 July 2014 my accountant has declared income from buisiness as 50 % of net income recieved as per section 44 ad is it correct but as per section 44 ae net monthly income is 4500 in case og l.g.v if less than 10

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