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Section 44AE

kannangs (B.Com) (35 Points)

31 March 2020

My brother doing the transport business. He has not own any trucks. He is hiring trucks from other trucks owners. Can his income covered u/s 44AE or if there is no provision please give some advice. looking for earliest reply.

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8 Replies

Mili Haria (Business) (88 Points)
Replied 31 March 2020

Section 44AE is applicable for persons who are owning vehicles..as ur brother is not owning any vehicle..he is ineligible to opt for the presumptive scheme..he would be required to comply with the normal provisions of the income tax act.

2 Like

CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 31 March 2020

ownership of vehicle is MUST

your brother is NOT eligible for the presumptive taxation u/s 44AE

Abhishek Agarwal (article) (55 Points)
Replied 01 April 2020

Is he is eligible for 44AD then??

RAJA P M ("Do the Right Thing...!!!") (127133 Points)
Replied 01 April 2020

If he is not dealing commission basis then Yes, he can eligible u/s 44ad...

1 Like

kannangs (B.Com) (35 Points)
Replied 01 April 2020

Actual transaction In last FY (2018-2019)

Freight Received Rs.3,10,000 (1% TDS Rs.3,100 Deducted under 194C) (Income from Own Truck)

Freight Received Rs.8,50,000 (1% TDS Rs.8,500 Deducted under 194C) (Income from Hiring Trucks)

can i use Both section 44AD and 44AE ? what is business code for 44AD?

Pls kindly give some suggestions.

Spurto Consultancy Services (Consultant) (1891 Points)
Replied 01 April 2020

Yes, you can use the benefit of the both the sections of presumptive income 44AD & 44AE

RAJA P M ("Do the Right Thing...!!!") (127133 Points)
Replied 01 April 2020

@ Mr Kannan GS.,

As per Your query.,

Your brother can opt sec 44ad and 44ae...

kannangs (B.Com) (35 Points)
Replied 01 April 2020

Originally posted by : kannangs
	Actual transaction In last FY (2018-2019) Freight Received Rs.3,10,000 (1% TDS Rs.3,100 Deducted under 194C) (Income from Own Truck) Freight Received Rs.8,50,000 (1% TDS Rs.8,500 Deducted under 194C) (Income from Hiring Trucks) can i use Both section 44AD and 44AE ? what is business code for 44AD? Pls kindly give some suggestions.