Section 44ad

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 March 2014 there is a transporter(individual) who has its total income around 60 lakhs with no claim under 10AA or deductions of any income under C, and also he doesn't own any lorry,Nor the transporter have any commission or agency income.
so,would he be covered under presumptive income or not.

If applicable,Is there other way out in which there won't be any need of tax audit, nor the transporter have to show 8% income.

How is it possible?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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11 March 2014 The assessee is an eligible assessee as per Section 44AD.

Accordingly he can show presumptive income and file ITR 4S .

Querist : Anonymous

Querist : Anonymous (Querist)

28 June 2014 What if such transporter assessee has income from more than 2 house properties..and still he wants to file itr with presumptive income, then which he needs to be file.

I mean, which ITR form is applicable to assessee having presumptive income along with more than one house property income.

Also, please let me know that will there be any tax complications, if the total income after deducting exempt income becomes less than 8% of turnover,under computation of income.

And if he files itr 4 then will such income be treated as presumptive income???

Please Guide me.....

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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23 July 2025 You’ve asked an insightful multi-part question about a transporter (individual) wanting to opt for presumptive taxation under Section 44AD, and its interplay with:

Income from house property

ITR form to be used

Minimum 8% income requirement

Whether ITR-4 (not ITR-4S) can still be considered under presumptive

Let’s break this down step by step.

✅ 1. Is the transporter eligible for Section 44AD?
Yes, since:

He is an individual (resident).

His turnover is below ₹2 crore.

He does not have income from commission or agency.

He is not covered under Section 44AE, since he doesn't own goods vehicles.

🔍 Note: If he did own goods vehicles, then Section 44AE would apply instead of 44AD.

So yes, Section 44AD is applicable in this case.

✅ 2. What if he has income from more than 1 house property? Which ITR form applies?
If the assessee:

Opts for presumptive income under Section 44AD, and

Has more than one house property (say, two rented houses or one rented + one self-occupied),

then:

✅ He cannot file ITR-4S (Sugam) (as it allows only one house property).

✅ He must file ITR-4 (not ITR-4S).

In ITR-4, he can still declare presumptive income under Section 44AD in the appropriate business schedule.

✅ 3. What if total income is less than 8% of turnover?
This is critical.

Under Section 44AD(1):

Assessee must declare minimum 8% (or 6% if digital receipts) of gross turnover as income.

If he wants to declare lower than 8%, then:

He must maintain books, and

He must get a tax audit under Section 44AB(e), if total income exceeds the basic exemption limit.

💡 Example:

Turnover = ₹60 lakhs

8% = ₹4.8 lakhs

If he shows income less than ₹4.8 lakhs AND his total income > ₹2.5 lakh (basic limit),
→ then audit is mandatory.

So, there is no legal way to avoid audit if income shown is 1 house property? ✅ Yes
Can he file ITR-4? ✅ Yes (required in this case)
Can he avoid audit if he declares <8% income? ❌ No, unless total income ≤ ₹2.5 lakh
Can presumptive income be shown in ITR-4? ✅ Yes, in business income schedule

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