Section 44 ae

This query is : Resolved 

28 December 2011

Good Morning Sir,

My client has transportation business of a truck hiring, he is not owning any truck but taking trucks on rent and doing his business of transportation and he earned income of rs. 4,25,148/- (net profit)
so pls suggest me how to deal with such income?

Also suggest what will be tax implication if he also owns one truck along with above business?

thank you

CA Siddhartha Bhardwaj (Expert)
28 December 2011

1. Section 44AE is applicable only to an assessee who OWNS goods carriages.

If a person takes goods carriage on hire and further sublets the same, then Section 44AE is not applicable to such income.

In such a case, the income will be computed as per the normal provisions of the Act.

2. If the person also owns 1 truck, then he has TWO sources of income.

For the income from OWNED truck, Section 44AE will be applicable and for the other normal provisions will be applicable.

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