U/s 44ae

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 November 2012 A assessee having 5 truks and his turnover for the f.y. 2011-12 is Aprrox. Rs. 75 Lacs.

Whether he is file his Income Tax Return under/sec 44 AE (i.e. showing truck plying Income) or Audit compulsorily U/s 44 AB.

Please give your valuable suggestions.

CA. Subhash Dangi

CA. Subhash Dangi (Expert)
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08 November 2012 Section 44AE

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.

Based on above provisions, the assessee can file his income tax return u/s 44AE as the condition of of maximum turnover of the assessee is not applicable.
Assessee offering income on presumptive basis u/s 44AE is not required to maintain books of account & other documents as prescribed u/s 44AA and audit u/s 44AB.

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