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Querry on 44AE

16 October 2020

If X&Y are two brothers and they have 5 heavy vehicles and the owners of vehicles on papers are both X&Y.
If they both files their income tax return separately under sec 44AE then how they will show their income?

Is it necessary to make partnership deed b/w both of them?

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9 Replies

prasad Nilugal (3909 Points)
Replied 16 October 2020

How many truck own by X and how many Y out of 5 . Official purchase Invoice in the name of X and Y .

Mohd Khalid (492 Points)
Replied 16 October 2020

All trucks are owned by both of them by investing eqaul amount of money

ayusmita (Tax consultant) (5885 Points)
Replied 16 October 2020

As per the provisions of section 44AE for heavy good vehicles income will be computed at the rate of rs 1000 per ton of gross vehicle weight for every month or part of a month during which the heavy good s vehicles is owned by taxpayers

my personal veiws are as per your saying that they owned by investing same amount and owned the five equally
then divide the income equally between them
as per the act it is calculated for every month hence a year has 12 months
divided by 2 we get 6 month each for two brothers simultaneously for each 5 vehicles
but make sure one brother don't get Feb all the times
my personal veiws I might be wrong
but make sure to do a partner ship deed between them dividing the .....

Mohd Khalid (492 Points)
Replied 16 October 2020

But make sure one brother don't get Feb all the times
my personal veiws I might be wrong
but make sure to do a partner ship deed between them dividing the .....
I didn't get your the above point

ayusmita (Tax consultant) (5885 Points)
Replied 16 October 2020

Sorry for that line I want to delete
I meant divide the income as per 6 month each and make sure to do a partner ship deed

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Mohd Khalid (492 Points)
Replied 16 October 2020

It is compulsory to do partnership deed

ayusmita (Tax consultant) (5885 Points)
Replied 16 October 2020

If you do it's better my opinion

Mohd Khalid (492 Points)
Replied 16 October 2020

Ok
But how I will show the income of both brothers separately in ITR 4

MAHARAJA SELVA ESWAR (285 Points)
Replied 24 October 2020

For each of your brothers you have to file itr 4 separately.
Then show the half of the total income for each of them .
You will be filing tow forms of itr 4