For AY 2019-20, the following provision for the calculation of taxable income under section 44AE shall be applicable.
But For AY 2018-19, there is no change.. ..
As per My opinion a truck owner cannot earn such money which critaria given by income tax department . If a gross vehicle weight for 17 MT TRUCK ( 10 WHEEL)= 8.5 MT VEHICLE WEIGHT+ GOODS CAPACITY 17 MT THEN TAXABLE INCOME IS 8.5+17= 25.5*1000 = 25500 PER MONTH , THAT IS NOT POSSIBLE , EARLIER THIS FIGURE WAS RS 7500/MONTH.
Here, the rates are charges over gross vehicle weight or unladen weight only.........
So, in the example.... it will be 8,500/- PM.... for unladen weight of 8.5 MT Truck....
SIR as per section 44AE -
GROSS VEHICLE WEIGHT OR UNLADEN WEIGHT AS THE CASE MAY BE
As per definition in Motor Vehicle Act - unladen weight applicable for tractor or roller (having only self weight, not of goods) and gross vehicle weight is applicable for other heavy goods vehicle (having weight of goods also)
so i think income will be 25000/- per month
@ Ritesh..
Thanks to point out the mistake...
Actually in above case the truck as specified in the example is just 8.5MT gross weight and hence its not considered heavy vehicle if its gross weight is below 12 MT, and hence only rs. 7,500/- PM will be charged.
Please note the clarification issued under the act as...
Following sub-section (2) shall be substituted for the existing sub-section (2) of section 44AE by the Finance Act, 2018, w.e.f. 1-4-2019 :
(2) For the purposes of sub-section (1), the profits and gains from each goods carriage,—
(i) being a heavy goods vehicle, shall be an amount equal to one thousand rupees per ton of gross vehicle weight or unladen weight, as the case may be, for every month or part of a month during which the heavy goods vehicle is owned by the assessee in the previous year or an amount claimed to have been actually earned from such vehicle, whichever is higher;
(ii) other than heavy goods vehicle, shall be an amount equal to seven thousand five hundred rupees for every month or part of a month during which the goods carriage is owned by the assessee in the previous year or an amount claimed to have been actually earned from such goods carriage, whichever is higher.
Explanation.—For the purposes of this section,—
(a) the expression "goods carriage" shall have the meaning assigned to it in section 2 of the Motor Vehicles Act, 1988 (59 of 1988);
(a) the expressions "goods carriage", "gross vehicle weight" and "unladen weight" shall have the respective meanings assigned to them in section 2 of the Motor Vehicles Act, 1988 (59 of 1988);
(aa) the expression "heavy goods vehicle" means any goods carriage, the gross vehicle weight of which exceeds 12000 kilograms;
Or as specified earlier .... if gross weight is 25.5 MT is taken as heavy goods vehicle..... as per motor vehicle act...
For IT sec. 44AE only unladen weight is taken for taxation, which is just 8.5 MT i.e Rs. 8,500/- PM.
but 44 ae says
Gross vehicle weight or unladen weight as the case may be
just clarify in which case gross vehicle weight and in which case unladen weight will be applicable
If we see on it dept website tax tools and fill income u/s 44 AE only gross vehicle weight is asked, there is no place for unladen weight
Yes Dear,
You are right. Departmental tools are calculating it based on Gross weight. As such the unladen weight is just for tractors or other vehicles as per Motor act. It also gives impression that for heavy goods vehicles sec. 44AE is no more lucrative, only small vehicles owners may adopt it. Thanks again for the enlightenment.
But sir As per Motor Vehicle Act
“gross vehicle weight” means in respect of any vehicle the total weight of the vehicle and load certified and registered by the registering authority as permissible for that vehicle;
which include the wait of the vehicle and goods both
so in the above example the gross vehicle weight = 8.5 + 17 = 25.5
Yes, agreed. I retify to the interpretation.
CAclubindia
