01 November 2013
when a person gets some income from truck hiring which is shown as other income in computation.where the purchase of truck should be treated?either in capital a/c or as fixed asset of business or in other way.But it is not used for business work.
02 November 2013
can i show it in capital account by passing following journal entry capital a/c......................Dr To Bank a/c in capital a/c i will show that amount taken for purchase of truck.if no,please clarify my doubt clearly.
02 November 2013
If you show it under individual file then you can not claim depreciation on such trucks my dear friend... Treat it business income and just relax, No maintenance of books...
Applicable: Assessee engaged in business except plying, hiring or leasing goods carriages and who owns not more than 10 goods carriages anytime during the previous year. However unlike s. 44AD, there is no condition of maximum turnover of the assessee. Assessee shall be deemed to owner of goods vehicles taken on higher purchase or on instalment, whether whole or part of the amount is payable, when such vehicles are in possession of such assessee.
Applicable to class of taxpayer: Any assessee.
Presumptive or estimated income: Presumptive or estimated income is dependable on the nature of goods vehicle:
— Heavy goods vehicle Rs. 5,000 per heavy goods vehicle for every month or part of the month;
— Other than heavy goods vehicle Rs. 4,500 per such goods vehicle for every month or part of the month.
Terms goods carriage and heavy goods vehicle shall have meaning as per Motor Vehicles Act, 1988.
Higher or lower income: Assessee at his option can claim such higher/lower amount earned by him. Assessee can also claim to have earned income lower than specified amount, subject to fulfilment of conditions as to maintenance of books of account etc. and assessment of such assessee would be made u/s 143(3) ie scrutiny assessment.
Maintenance of books of account: Assessee offering income on presumptive basis is not required to maintain books of account & other documents as prescribed u/s 44AA and audit u/s 44AB. However in case assessee claims that he has earned income lower than specified amount, Ss. 44AE(7) and 44AA(2)(iii), mandates him to maintain books of account and other documents as specified u/s 44AA, get them audited from the accountant and furnish report as required u/s 44AB.
Deduction from presumptive income: No deduction is allowable under provisions of sections 30 to 38. However in case of partnership firm remuneration to partner and interest on partner’s capital is allowable. For the computation of allowable partner’s remuneration, book profits would be deemed income less interest on capital. Further written down value of any depreciable asset of such business shall be calculated as if depreciation has been actually allowed.
Advance tax: No specific provision exempting assessee’s from payment of advance tax.
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