Tax audit turnover

A Person has Truck Plying as well as Trading Business... His Gross receipts from truck plying of 2 Trucks is 47,28,432 in Bank Statement and that from Trading is 26,75,250...My Querry is

1) Whether he can show income of 120000 u/s 44AE and 8% of 2675250 u/s 44AE?

2) As his total receipts in bank account is  74,03,682 ,whether he will be liable to TAX Audit?

3)However Transport income in 26AS is 4,78,250. Is there any problem in Showing higher turnover u/s 44AE?

Replies (6)

since individual's turnover has exceeded 60lacs, tax audit is mandatory, 44AE does not apply. There cannot two seperate assessments and returns for the same individual.

At the outset it is important to note the provision of section 44AE (5) which states as under : The provisions of sections 44AA and 44AB shall not apply in so far as they relate to the business referred to in sub-section (1) and in computing the monetary limits under those sections, the gross receipts or, as the case may be, the income from the said business shall be excluded. Therefore, the provision of section 44AB and 44AA is not applicable to Truck business. So tax audit may not be applicable as turnover from trading business is not in excess of 60 lacs. So best way out is claim 44AD on Rs. 26 lacs T/O of trading business. And claim 44AE for income of two trucks. If the income exceeds the bare minimum of 120000/- for the 2 trucks then disclose higher income as per accounts. The fact that 26AS does not reflect income will not create any problem.

its better to disclose income For  plying hiring vehicle at Rs.5,000 per month per vehicle (as per section 44AE) therefore income under this source will be 5000*12*2= 120000/-

for other business take benefit of 8% of gross amt. turnover (under section 44AD), or otherwise to get done Tax  Audit under section 44Ab if profit % is below 8% for this business 

 

Thanks a lot Mr Vineet Jaiswal and Mukesh Kumar.... I would further like to know that Should I disclose the entire turnover of Rs 4728432 u/s 44AE with profit of Rs. 120000 in return??? 

 

You don't need to disclose Gross turnover from vehicle& need not worry about what amt. shown in 26AS statement. You have to mention only no of vehicles you have operated during the year. Software will automatically calculate your income u/s 44AE of Rs. 120,000/-. Disclosing no of vehicle is sufficient for Revenue Department.   

Ok Thanks

 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured ARTICLESHIP 06 October 2026
Semi Qualified

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
07 October 2026
Senior Account Manager

Amplio Invest

Mumbai

M.Com

View Details
Company
Featured 27 October 2026
semi-qualified CA

Saini Pati Shah & Co LLP, Chartered Accountants

Mumbai

CA Final

View Details
Company
28 October 2026
Assistant Director/ Associate Director-Finance & Accounting

Krea University

Chennai

CA

View Details
Company
15 October 2026
Senior Accountant

Continental Belting Pvt Ltd

Mumbai

B.Com

View Details
Company
ARTICLESHIP 01 October 2026
Articled Assistant

KPSN & Associates LLP

Chennai

CA Inter

View Details
Company
30 September 2026
Senior Accounts Executive

Codeboard Technology

Chennai

MBA

View Details
Company
ARTICLESHIP 08 October 2026
ARTICLE TRAINEE

S.B.G. & CO. CHARTERED ACCOUNTANTS

New Delhi

CA Inter

View Details