hw to treat tis income

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

                                           or

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

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..

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

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

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/-

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...

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...???

Agree with G.K. anna.....

44AE for business of leasing and plying goods carriage......

Regarding Loan - normally bank allows loan upto three or four  times of income shown by the assessee.....

It is always advisable to pay some tax.............

Hi everyone,

my question is in intrium budget 2009  sec 44 AD amended that every up to 40 lakhs turnover optional to pay 

8 % tax however it is effetive from 1.4.10

Now in FA 2010 Amended Tax audit limit Rs.60 lakhs .

So how above amendment implemented.

plz reply.

60 lakhs should be substituted for 40 lakhs for this Section from period starting from 01.04.2010..so will be applicable from A.Y. 2011-2012