Whether a person running passenger buses can claim income U/S 44AD since 44AD specifies good carriage vehicle only?
Section 44AD applies to only "eligible business"......as per the section "eligible business" means-any business EXCEPT the business of plying, hiring or leasing goods carriages referred to in section 44AE.
Hence, 44AD can be applied in this case...
44AE Says About goods carriage Vehicle & nt 44AD.
Section 44AE. SPECIAL PROVISION FOR COMPUTING PROFITS AND GAINS OF BUSINESS OF PLYING, HIRING OR LEASING GOODS CARRIAGES.
Hi Payal,
Sec 44ad is applicable for eligible business which stands for any business except the business of plying, hiring or leasing goods carriage.
If business is of plying passengers in buses, it can be claimed u/s 44ad.
There is no specific mention of ONLY goods carriage. It was in erstwhile Section 44ae.
Warm Regards
Prateek
You can show your income u/s 44AD ie. as Presumptive Income 8% of the Gross Receipts.
Regards,
Devendra Kulkarni
Section 44AD (presumptive taxation) @ minimum 8% profit of the of the turnover should be offered to Income Tax, if the turnover is less than 60 lakhs, no books of accounts required to be maintained under IT Act. No Tax audit requirement, applies to all business except plying, hiring or leasing goods carriage which is covered u/s.44AE.
However, This scheme is not applicable to persons earning income in the nature of commission or brokerage or carrying on any agency business. Proposed to amend this scheme as per budget 2012-13 proposals, which will take retrospective effect from 1st April, 2011.
Section 44AD Limit is proposed to be raised to 1 crore in Union budget 2012-13
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