If a person owns only one vehicle and he uses it to transport the goods and providing other services too a company. Here my query is that whether he has to file return under 44 AD or 44AE.
03 August 2020
For income from transportation, assessee can file return under section 44EE. For other services, you need to specify what kind of services you provide to the company to answer your query.
09 August 2020
One major difference as compared to Section 44AD is that “person” in this section includes every person i.e. an individual, HUF, firm, company, etc.
In case, you are adopting the provisions of section 44AE, your income will be computed @Rs. 7,500 per vehicle per month during which the vehicle is owned by you and where the part of the month would be considered as a full month.
And if the actual income is higher than the presumptive rate, i.e., higher than Rs. 7,500, then such higher income can also be declared as per the wish of the taxpayer.
Further, you can declare income at a lower rate (i.e., at less than Rs. 7,500 per goods vehicle per month) but if you do so, and your income exceeds the basic exemption limit, then you will be required to maintain the books of accounts u/s 44AA and to get your accounts audited u/s 44AB.
The provisions relating to the admissibility of deductions, depreciation, written down value of the asset, advance tax, maintenance of books of account and audit of accounts are same as discussed above. Only a partnership firm can claim the further deduction on account of remuneration and interest paid to partners.
For example, if you are engaged in the business of plying, hiring or leasing of goods carriage and you own 7 vehicles throughout the year, then your income u/s 44AE shall amount to Rs. 6,30,000/- (i.e. Rs. 7500 x 7 vehicles x 12 months).
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