Return filing of cab driver

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sahil (Querist)
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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

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CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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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.

sahil

sahil (Querist)
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11 April 2016 sir can i show his income u/s 44ad

sahil

sahil (Querist)
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11 April 2016 sir can i show this income u/s 44ad

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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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.

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