Increase in presumptive income for transport operators [Section 44AE]
Please help whether the changes given below would be applicable in NOVEMBER 2010 Examination or not??? Because in the links below the files uploaded by icai has created a confusion for me?? Kindly go through both the files before answering Regarding Section 44AE..
https://www.icai.org/post.html?post_id=6097
(i) Under section 44AE, a presumptive scheme is available to assessees engaged in business of plying, hiring or leasing goods carriages. The scheme applies to an assessee, who owns not more than 10 goods carriages at any time during the previous year. Such assessees opting for the presumptive scheme are not required to maintain books of account under section 44AA or get them audited under section 44AB.
(ii) The presumptive income per vehicle of transport operators under this scheme has been increased from Rs.3,150 per month to Rs.4,500 per month for vehicles other than heavy vehicles and from Rs.3,500 per month to Rs.5,000 per month for heavy vehicles with effect from A.Y.2011-12. (Month includes part of a month also).
(iii) However, the assessee has the option to declare in his return of income, an
amount higher than the presumptive income so calculated, claimed to have
been actually earned by him from such vehicle.
(iv) Example
Let us take the case of Mr.Y, who owns 5 heavy goods vehicles and 3 light
goods vehicles. For the P.Y.2009-10, his presumptive income under section
44AE would be Rs.26,950 [(5 × 3,500) + (3 × 3,150)]. For the P.Y.2010-11, his
presumptive income under section 44AE would be Rs.38,500 [(5 × 5,000) + (3
× 4,500)]. Therefore, consequent to this amendment, his presumptive income
would go up by Rs.11,550 (i.e., Rs.38,500 – Rs.26,950) for the A.Y.2011-12.
(Effective from A.Y.2011-12)
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