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hw to treat tis income

HITHESH.S.K (CA Final/CS inter) (132 Points)

27 March 2010

hey...one assessee want to take house loan, so she goin to file a return, she is having income from her own bus transport n from one shop...here that bus transport income comes under which head? & to get bank loan whether she should pay tax or can i show income lesser than exempt limit..?

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CA KHAN AURANGZAIB (ERP FINANCIAL CONSULTANT) (85 Points)
Replied 27 March 2010

Bus transport income Comes under the Head " Income from business and Profession"

there are two way to calculate the Tax on Trasnporter Income

He can calculate the profit and loss on the basis of presumptive Income under section 44AF

Calculate the profit and gain under the normal provision (If her income is less than Presumptive income .

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HITHESH.S.K (CA Final/CS inter) (132 Points)
Replied 27 March 2010

thank u khan sir & kiran for reply...

but i think it comes under 44AE...bcz transport business...is passenger transport too comes in 44AE...or just goods transport..

shushantsinghal (BCOM(HONS),C.A) (283 Points)
Replied 27 March 2010

IN MY OPINION JUST SHOW THE ASSESSEE INCOME U/S 44AE AND TAKE INTO A/C THE NO. OF BUS OWNED BY HIM OR HIRE FROM MARKET.......AND JUST SHOW THE PROFIT OF SHOP BY APPLYING 44AF AND SHOW THE PROFIT LESS THAN RS 120000/-.BCZ OF SEC 44AA

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HITHESH.S.K (CA Final/CS inter) (132 Points)
Replied 27 March 2010

thnk u sushanth,....

as per sec 44AA, i hv to limit d icome til1.20....but is it for single business.?...or can i show 3500*12=42000(44AE) n 106000 as a normal business income...(nt as presumptive provision)...which will be 148000...ll it effect the sec 44AA

shushantsinghal (BCOM(HONS),C.A) (283 Points)
Replied 27 March 2010

u can increase the limit of rs 3500/- to say rs 6000/- bcz the sec 44ae state that u can't show less than rs 3500/-

Max Payne (employed) (2569 Points)
Replied 27 March 2010

No hithesh passenger transport does not come in 44AE...

That provision is for leasing and plying GOODS carriages only...

Also pls see if 44AF can be applied in relevant Assessment year..

Upto AY 2009-10, 44AF covered only retail trade....

see which is the relevant assessment year... 44AD and 44AF are amended sections...

HITHESH.S.K (CA Final/CS inter) (132 Points)
Replied 27 March 2010

thnk u G.K.....me fully confused.....its A.y 2009-10 nly ...,i think its better nt to show in prsumptive income...i ll show both in a normal rules....if i show income of Rs 156000 ( transprt = 84000+ shop=72000)...ll it effect sec 44AA...bcz der i shud limit to 1.20...is it for one business or total all business...???