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Tax audit

Kailash (Proprietor) (39 Points)

10 June 2013

If an assessee has a business with a turnover of more than Rs.1 crore and he is also the owner of 2 trucks, can he declare his income from trucks u/s 44AE on presumptive basis???

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3 Replies

Rahul Jalan (Chartered Accountant) (121 Points)
Replied 10 June 2013

Yes , he can declare his income under 44AE if he owns not more than 10 goods carriages even if the turnover exceeds Rs 1 crore since there is no such condition mentioned in the section... Further maintenance of books of accounts and tax audit is also not required in respect of such business ...

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CA AMAN KAMALIA (CA) (88 Points)
Replied 10 June 2013

IN THIS CASE SECTION 44AE WILL NOT BE APPLICABLE AS THE TURNOVER EXCEDED 1 CRORE. IN THIS CASE AUDIT IS COMPULSORY

Rahul Jalan (Chartered Accountant) (121 Points)
Replied 11 June 2013

@ Mr. Aman - there is no such condition for presumptive taxation under sec 44AE in regard to turnover...the only condition is that assessee must not own more than 10 carriages at any time during the previous year... Further sub section 5 of sec 44AE clearly states that the gross receipts of such business shall be excluded for calculating the monetary limit of sec 44AA and 44AB. So if an assessee has only this business (referred in sec 44AE) whose turnover exceeds Rs. 1 crore , tax audit is no required .. It is really surprising to see such an erroneous reply from a CA...