Applicability of section 44ad or section 44ae to transporter

Tax queries 2031 views 3 replies
1) One of our client is in the business of Goods Transport. 2) He owns 4 vehicles for Transport of Goods. His 40% of business comes from his own vehicle and rest 60% from hiring the vehicle from other Transporter. In short he uses his own vehicles as well as vehicles from other transporter for his customer. 3) His total turnover is between 1 cr to 2 cr. 4) He receives transport charges from customer and pays to other transporter as expenes. He is not an agent between his customer and other transporter. Request you to guide whether, he is eligible for presumptive taxation under Section 44 AD or Section 44AE.
Replies (3)

He can declare income from his 4 goods vehicle u/s, 44AE; along with other business income under normal provision. File ITR3.

Originally posted by : Dhirajlal Rambhia
He can declare income from his 4 goods vehicle u/s, 44AE; along with other business income under normal provision. File ITR3.

Can we declare other income u/s 44AD?

No, the transporter cannot opt for presumptive assessment u/s. 44AD of the act...


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