Bus. of Plying,Hiring Goods Carriages


Bus. of Plying,Hiring Goods Carriages

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Income Tax
Business of Plying, Hiring or Leasing Goods Carriages [Section 44AE]

Business of Plying, Hiring or Leasing Goods Carriages [Section 44AE] [W.e.f. A.Y. 2015-16]

 

The existing provisions of section 44AE provides for presumptive taxation in the case of an assessee who is engaged in the business of plying, hiring or leasing goods carriages and not owning more than ten goods carriages at any time during the previous year. Income from the said business is calculated as under:

 

 

Type of Goods carriage

Amount of presumptive income

Heavy goods vehicle (HGV)

` 5,000 for every month (or part of a month) during which the goods carriage is owned by the taxpayer.

Vehicle other than HGV

`4,500  for every month (or part of a month) during which the goods carriage is owned by the taxpayer.

 

The amount of presumptive income was revised by the Finance (No. 2) Act, 2009. Further, the existing

provisions make a distinction between HGV and vehicle other than HGV for specifying the amount of presumptive income.

 

Considering the erosion in the real values of the amount of specified presumptive income due to inflation over the years and also in order to simplify this presumptive taxation scheme. the Finance (No. 2) Act, 2014 has provided for a uniform amount of presumptive income of ` 7,500 for every month (or part of a month) for all types of goods carriage without ally distinction between HGV and vehicle other than HGV.


The assessee may declare a higher income than that specified above.


The expression "goods carriage" shall have the meaning assigned to it in section 2 of the Motor 

Vehicles Act, 1988 [Explanation]. back

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