26AS of an assessee states 620000 on which 1% TDS has been deducted u/s 194c, he has not made any investment during the previous year and will not do till 30th June for claiming deduction u/s80c.
Assessee is engaged in business of transport of goods.
if he Opt for 44ae than he will be having tax liability of around 31000 which he does not want to pay.
just because 26AS states 620000 he need to show his income atleast 620000.
questions :
1) whether he can show gross receipt u/s 44AD as definition of vehicle in Sec.44AE states only for "truck" ?
2) whether he can show receipt net of all related expenses
3) how can he save his tax liability ( except audit )
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Presumptive scheme u/s 44ae
Replies (4)
Any assessee who is eligible for Sec.44 AE is specifically outside the scope of Sec.44AD....so you are not eligible for taxation on deemed basis u\s 44AD....Further 44AE covers all goods carriages..it is not about only for trucks
Whether Assessee whose TDS has been deducted under 194C can show gross receipt u/s 44AD
Option 1 - offer income on the basis of number of trucks
option 2 - prepare books of accounts and offer income on actual basis. check for tax audit applicability
You cannot show gross receipt under 44AD because transportation of goods is specifically excluded.
option 2 - prepare books of accounts and offer income on actual basis. check for tax audit applicability
You cannot show gross receipt under 44AD because transportation of goods is specifically excluded.
Sec.44 AD apply on eligible business....and here eligible business means Any business except busniess referred in 44AE whose Turnover or gross reciepts in P.Y. does not exceed 2 crore....TDS deduction of contracter is not a basis for taxation under 44 AD...it is irrelevent
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