jcb hiring business for individual tax treatment?

Show the income ic Cr. of your Capital A/c.

Same is taxable under head "Other Sources."

is this not covered under section 44AD??

No it can't. Show in other sources.

thanks

why in other sources? why not in pgbp?

Giving JCB on rent is not your business.

then what for the JCB was bought? one will purchase JCB for the purpose of renting and not for the personal purpose.

You do not doing any business with JCB. You purchase it for renting pupose only.

Renting is not a business.Thats the reason same is consider as Other Sources Income.

what kind of business can be done with the help of JCB except renting it? Rashmi mam, when it comes in business angle it should be taken as hiring and not renting.

Under which Sec TDS deducted on it.

TDS Liability on Vehicle Hire Charges Paid

When company hires a vehicle on rent for a certain period of time then there is dilemma on payment made to vehicle owner that company will deduct TDS under sec 194C or 194I

Dependency on which assesse will deduct TDS under Sec 194C or 194I

Control on Vehicle – When vehicle is hired with driver on rent and control of the vehicle remain with the owner of the vehicle through driver then TDS will deduct under sec 194C. When vehicle is hired with or without driver but control not remains with owner of vehicle.

Contract of Agreement – When there is agreement between vehicle owners and company for a fixed tenure for fixed amount then TDS should be deducted under the sec 194C not under 194I.

Running & Maintenance-If running & maintenance expenses like petrol or diesel, toll, repair, oil etc. are to be incurred by the person who hired the vehicle the TDS should be ducted under sec 194I. If running & maintenance expenses like petrol or diesel, toll, repair, oil etc. are to be incurred by the owner of the vehicle the TDS should be ducted under sec 194C.

Vehicle is hired for Specific Job-When Vehicle is hired for a specific job like a company make contract with the owner of vehicle to take employees and directors from home to office and return then to home. Then TDS should be deducted under sec 194C not under sec 194I.

TDS under sec 194C

1% TDS deducted where payment is made to an individual or HUF for Contract of work.

2 % TDS deducted where payment is made to other then individual or HUF Contract of work.

Work of Contract includes

Advertising

Broadcasting and Telecasting

Carriage of goods or passengers

Catering

Manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from such customers.

Conditions for non-applicability of Sec 194C

Where single payment is less than Rs. 30000 and aggregate payment during the year is less than Rs. 75000 then Sec 194C is not applicable.

Where there is franchise agreement with mutual obligation and rights.

Where Contractor’s income is less than taxable Slab and has valid Exemption Certificate.

Payment made to non-residential Indian then sec 194C is not applicable, where sec 195 is applicable

TDS under sec 194I

2% TDS deducted where payment is made for rent on Plant & Machinery.

10% TDS deducted where payment is made for rent paid on other than Plant & Machinery.

TDS liability arises when aggregate payment exceeds Rs. 180000.

Condition for non-applicability of Sec 194I

Where rent is paid to Government or Specifies Entities

Where aggregate value of rent paid during year does not exceeds Rs. 18000

Where entities’ Income is exempt u/s 10.

Where rent receivers’ income is less than taxable Slab and has valid Exemption Certificate.