Return filing of cab driver
This query is : Resolved
10 April 2016
dear sir,
A cab driver is providing services to co. like ola and get tds deducted u/s 194C.
there is no principal to employee relationship b/w them.
My query are that
1.under which head in IT return he show this income salary/ pgbp/ other source
2. can he file return for a/y 2015-16 without penalty of rs.5000 as it is a refund case.
3. is penalty of rs.5000 is decided by assessing officer after filing of return or it is to be paid while filing return
Message likes :
1 times
10 April 2016
1. You have to show income under the head pgbp.
2. Yes he can file the return for AY 2015-16.
3. Penalty is generally not levied and depends upon the discretion of the AO. It is not required to be paid while filing the return.
2. Yes he can file the return for AY 2015-16.
3. Penalty is generally not levied and depends upon the discretion of the AO. It is not required to be paid while filing the return.
21 July 2025
Yes, the cab driver can show his income under section 44AD if he is carrying on a business and meets the eligibility criteria:
Turnover (gross receipts) up to ₹2 crore
Business other than profession, plying, hiring or leasing goods carriages
Declares a presumptive income at 8% (6% if receipts are digital payments) of gross turnover
Since cab driving through platforms like Ola is considered a business activity and not employment or profession, 44AD can apply here.
So in short:
Show income under Profits and Gains from Business or Profession (PGBP)
Use section 44AD presumptive taxation (8% of gross receipts)
File return accordingly using ITR-4S or ITR-4 depending on income sources
This will simplify filing and avoid maintaining detailed books of accounts.
Turnover (gross receipts) up to ₹2 crore
Business other than profession, plying, hiring or leasing goods carriages
Declares a presumptive income at 8% (6% if receipts are digital payments) of gross turnover
Since cab driving through platforms like Ola is considered a business activity and not employment or profession, 44AD can apply here.
So in short:
Show income under Profits and Gains from Business or Profession (PGBP)
Use section 44AD presumptive taxation (8% of gross receipts)
File return accordingly using ITR-4S or ITR-4 depending on income sources
This will simplify filing and avoid maintaining detailed books of accounts.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Tax on Deemed Capital Gain
- Exiting partner in partnership firm in gst portal
- CLOSING STOCK QUERY
- Type of Capital Gain
- Error in uploading Form 10BD
- Applicability of Books of Account for Commission Income (Sections 194D & 194H)
- TDS _Long term Capital Gain ref.sec 214 Table 2
- Consequences of Non-Deduction of TDS under Income Tax???????????????
- Difff in ais receipts and gst turnover
- Grand in aid
- Account freezed for Ineligible ITC Scrutiny for GST Annual Return
- TDS on property - Form 141 query
- Seeking Advice: High Tax Shortfall on Job Switch + Let-Out House Property Loss in FY 2025-26
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
