Income tax section 44ae

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MOHD AZID

TAX LAWYER

96 Points Posted on 12 March 2015

My client doing the transport business. He has not own any trucks. He recieved order from paper mills on phone. Then he calls to truck owners, after that truck owners send their trucks to paper mills & my client issue his firm transport firm bilti. My client recieved all freight payment by cheques from paper mills & made cash payment to truck owners.

can my client file his ITR u/s 44AE?

If not, then tell other provisions.

Looking for earliest reply.

Regards

Replies (2)

Maniraja

CHARTERED ACCOUNTANT

46 Points Posted on 12 March 2015

Dear Sir,

Based on my understanding of Sec.44AE of income tax act. Your client hiring trucks as per requirement. In the Sec.44AE it clearly specifies that Hiring of trucks also covered.

So you can file income tax return U/s 44AE of Presumptive taxation.

Kuldipsinh Jadeja

Job

320 Points Posted on 25 June 2015

It is worth to note that as per section 44AE of Income Tax Act, 1961, Taxpayer should be engaged in the business of plying, hiring or leasing of goods carriage AND who does not own more than ten goods carriages at any time during the previous year.

So both the conditions should be satisfied to apply the provisions of section 44AE. His Income would u/s 44AE would be deemed to be Rs.7,500/- per goods carriage per month (or part of a month) during which the goods carriage is owned by the taxpayer.

Since your client is not the owner of trucks he cannot claim the provisions of section 44AE. Normal provisions as applicable for profits and gains of business or profession would be applicable.