Section 44AE

This query is : Resolved

CA Ysil Karunai (Querist)
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15 March 2010 A assessee receiving a salary of Rs.25000/- p.m is only source of income, perhaps he aviled a car loan of Rs. 650000/- and bought a new car and gives the car running on hire at a monthly hire charges of for Rs. 25000/-.
Query:
1. Whether the one car running on hire is taxable on presumptive basis u/s 44AE? if yes, it is mandatory for the assessee to register his proprietory business and obtain a PAN?
2. Rs. 25000 p.m is actual hire charges recieved by the assessee, whether this should be taxable or Rs. 1250/- p.m. U/s 44AE taken into account?
3. If assessee shows his hire income under other sources and claim related expenses, it is permissible?

CA Ashok Kumar Sahu

CA Ashok Kumar Sahu (Expert)
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15 March 2010 one car running on hire is taxable on presumptive basis u/s 44AE.

It is not mandatory for the assesses to register his proprietary business and obtain a PAN if his taxable income is less then basic exemption limit ie 1,60,000/-.

your income in u/s 44AE is - 3150*12=37800/- but u have salary income also because of that u/h PGBP show income of Rs. 37,800/-. if you want to show below income then u want to prepare books if A/cs and Tax Audit.

If u want to show IOS it's not permissible as per my opinion.

CA Ysil Karunai

CA Ysil Karunai (Querist)
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17 March 2010 Since the assessee recieves actual hire charges Rs. 25000 p.m, in this case whether actual receipt amount should be taken or it can taken on presumptive basis ie., Rs. 3150 p.m

CA Ashok Kumar Sahu

CA Ashok Kumar Sahu (Expert)
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17 March 2010 assessee recieves actual hire charges Rs. 25000 p.m is not imported because of no expense and dep. is allowed, so this case actual receipt amount should be not taken.

It can taken on presumptive basis ie., Rs. 3150 p.m

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