Income tax section 44ae

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.

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.