RENT RECEIVED FROM VEHICLE HIRED BY COMPANY

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This discussion clarifies the tax implications for a client earning income by hiring out their heavy goods vehicle to a company. It addresses whether the income should be declared under 'Business Income' or 'Other Sources', and confirms that expenses related to the vehicle, such as repairs, maintenance, and loan interest, can be deducted. The conversation also touches upon TDS implications and presumptive taxation options like Section 44AE and 44AD for multiple vehicles.

raghavendra b

raghavendra b (Querist)
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18 May 2024 DEAR SIR,

MY CLIENT OWNED HEAVY GOODS VEHICLE (16WHEELS) AND ATTATCHED TO THE COMAPNY. THE COMPANY DID NOT DEDUCT TDS U/S 194C BUT IN FORM 26AS SHOWING BUSINESS RECEIPT OF RS 64300. BUT AS PER SECTION TDS SHOULD DEDUCTED IF THE CONTRACT BETWEEN THE CLIENT AND COMPANY. IS THERE ANY PROBLEM TO CLIENT OR NOT
MY CLIENT ALSO DOING OTHER MAIN BUSINESS PHOTOGRPHY AND VIDEOGRAPHY.

THE INCOME FROM CONTRACT HIRED FROM THE COMPANY SHOULD BE DECLARED IN OTHER SOURCE OR BUSINESS INCOME.

PLEASE GUIDE ME

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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18 May 2024 Must have been Vehicle Hire Contract.

raghavendra b

raghavendra b (Querist)
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18 May 2024 Thank you Sir for your reply,

Hire charges received from the company is taxable under business head or other sources because he is doing video and photography for marriage and functional accassions or if declared u/s 44ae of presumptive taxasation but he is not doing transport business only renting his vehicle.

I want your suggestions

regards

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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18 May 2024 He can declare it under Business head.

raghavendra b

raghavendra b (Querist)
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18 May 2024 THANK YOU SIR FOR YOUR REPLY,

HE HAS TO DECLARE BUSINESS 1 PHOTOGRAPHY AND BUSINESS 2 AS HIRING CHARGES RECEIVED FROM THE COMPANY.

HE CAN ALSO DEDUCT EXPENSES LIKE REPAIRS AND MAINTANANCES, LOAN TAKEN ON VEHICLE, OIL AND DIESEL EXPENSES, BECAUSE MONTHLY HE RECEIVED HIRING CHARGES RS 65000/- MONTHLY HE HAS PAYABLE EMI 53178/- ONLY INTEREST IS DEDUCTABLE EXPENSES.

REGARDS

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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18 May 2024 Yes, correct.
TDS will be deducted once the rental income exceeds Rs. 2.40L.

raghavendra b

raghavendra b (Querist)
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18 May 2024 THANK YOU SIR FOR REPLY,

COMPANY IS LIABLE DEDUCT TDS FROM HIM, SO HE DEDUCT EXPENSES AND INCOME FROM THE VEHICLE IN THE ITR

REGARDS

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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18 May 2024 Yes, Correct. All the expenses incurred to derive the income.

raghavendra b

raghavendra b (Querist)
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18 May 2024 THANK YOU SIR FOR ALL YOUR REPLIES,

REGARDS

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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18 May 2024 You are welcome.

raghavendra b

raghavendra b (Querist)
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11 July 2025 Dear Sir,

one of another client owned 2 light weight carriage vehicle 8 tonn and 10 tonn, his total rental income from vehicle upi receipts gross 17,55,157/- how to calculate his income opt for u/s 44ae or business head u/s 44ad

thank you sir

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