Section 44AE - Special provision for computing profits and gains of business of plying, hiring or leasing goods carriages - Income Tax - Ready Reckoner - Income Tax

Section 44AE :- Special provision for computing profits and gains of business of plying, hiring or leasing goods carriages A tax payer who owns not more than 10 goods carriage and is engaged in the business of plying, hiring or leasing of goods carriages, the income for such person would be deemed as: Light Goods Vehicle (less than 12,000 Kgs - gross weight vehicle) : 7500 per vehicle per month Heavy Goods Vehicle (more than 12,000 Kgs - gross weight vehicle) : 1000 per ton per vehicle per month. KEY POINT: Gross vehicle weight total weight of the vehicle and load certified and registered by the registering authority as permissible for that vehicle. Unladen weight the weight of a vehicle or trailer including all equipment ordinarily used with the vehicle or trailer when working but excluding the weight of driver or attendant and where alternative parts or bodies are used the unladen weight or the vehicle means the weight of the vehicle with the heaviest such alternative body or part. In respect of a tractor or road-roiler where the gross vehicle weight is not applicable and unladen weight exceeds 12000 Kgs. the profit and gains from each goods carriage shall be at the rate of 1000 per ton of unladen weight for every month or part of the month. An assessee who is in possession of a goods carriage, whether taken on hire purchase or on installments and for which the whole or part of the amount is still due, shall be deemed to be the owner of such goods carriage. Any deduction u/s 30 to 38 shall not be allowed as it is deemed to have given full effect. The assessee have to maintain books of account and get his accounts audited if he declares his income lower than the specified amount. The WDV of any asset used for the purpose of business shall be deemed to have calculated as if assessee has allowed depreciation for each relevant years. NOTE:- The expressions goods carriage , gross vehicle weight and unladen weight shall have the respective meanings assigned to them in section 2 of the Motor Vehicles Act, 1988. (Amendment by Finance Act 2018 , w.e.f. 1-4-2019)