Section 44ae

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kunal (Querist)
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21 September 2013 xyz ltd. engaged in the business of renting of goods carriage
rent is on monthly basis
all the repair& maint., driver salary, diesel expense are borne by the person who use goods carriage..

now please tell whether xyz ltd. opts for presumptive taxation u/s 44AE considering the facts that all the rent received by co. is pure income??

Nikhil Kaushik

Nikhil Kaushik (Expert)
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21 September 2013 Since its is a limited company, it is not a eligible assessee under 44AD and hence cannot claim presumptive income under 44AD.

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kunal

kunal (Querist)
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21 September 2013 SORRY SIR.. U/S 44AE

Nikhil Kaushik

Nikhil Kaushik (Expert)
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21 September 2013 In case of 44AE, your income shall be deemed to equivalent to Rs 5000 per month for heavy good vehicle and Rs 4500 per month for vehicle other than heavy good vehicle. This shall be only if the assessee has 10 or less than 10 such vehicles.

However, if your income is less than this, you may maintain books of accounts as mentioned in 44AA and get the tax audit done under 44AB.

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kunal

kunal (Querist)
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21 September 2013 sir please consider the mentioned facts in the query

Nikhil Kaushik

Nikhil Kaushik (Expert)
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21 September 2013 Kunal. what is the monthly rental income the company is making? how many vehicles are there?

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kunal

kunal (Querist)
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21 September 2013 there are less than 10 vehicles..

and monthly rental is Rs 3 lacs

kunal

kunal (Querist)
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21 September 2013 is renting of trucks on a monthly basis covered under the meaning of leasing ??

Nikhil Kaushik

Nikhil Kaushik (Expert)
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21 September 2013 i believe it should. Provided you satisfy all other requirements of the section 44AE, you should be able to claim benefits mentioned therein.

kunal

kunal (Querist)
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21 September 2013 thank you sir!

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