Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Advice on income u/s 44ad

payal (Job) (227 Points)

17 March 2012

Whether a person running passenger buses can claim income U/S 44AD since 44AD specifies good carriage vehicle only?

Reply
Follow
Share

11 Replies

(Guest)

YES, 44AD can be claimed...

Upgrade to CAclubindia Pro. Subscribe Now!

payal (Job) (227 Points)
Replied 17 March 2012

but 44AD say only good carriage vehicle , not passenger vehicle.

so on wat basis we can claim income U/S 44AD?

(Guest)

Section 44AD applies to only "eligible business"......as per the section "eligible business" means-any business EXCEPT the business of plying, hiring or leasing goods carriages referred to in section 44AE.

Hence, 44AD can be applied in this case...

Riddhi Bhuva (Article Student CA Final) (93 Points)
Replied 17 March 2012

44AE Says About goods carriage Vehicle & nt 44AD.

CA Shree Jain (Chartered Accountant) (1572 Points)
Replied 17 March 2012

Section 44AE. SPECIAL PROVISION FOR COMPUTING PROFITS AND GAINS OF BUSINESS OF PLYING, HIRING OR LEASING GOODS CARRIAGES.

Upgrade to CAclubindia Pro. Subscribe Now!

Prateek Agarwal (Sr. Executive - Finance & Accounts) (1732 Points)
Replied 17 March 2012

Hi Payal,

Sec 44ad is applicable for eligible business which stands for any business except the business of plying, hiring or leasing goods carriage.

If business is of plying passengers in buses, it can be claimed u/s 44ad.

There is no specific mention of ONLY goods carriage. It was in erstwhile Section 44ae.

Warm Regards

Prateek

Devendra (Chartered Accountant) (4775 Points)
Replied 17 March 2012

You can show your income u/s 44AD ie. as Presumptive Income 8% of the Gross Receipts.

Regards,

Devendra Kulkarni

Ankit (CA Final) (75 Points)
Replied 17 March 2012

when opting for presumptive income u/s 44AD, what books of accounts we have to maintain as per income tax and what is the limit for tax audit

Valerian Dsouza (Manager Audit & Taxation) (413 Points)
Replied 18 March 2012

Section 44AD (presumptive taxation) @ minimum 8% profit of the of the turnover should be offered to Income Tax, if the turnover is less than 60 lakhs, no books of accounts required to be maintained under IT Act. No Tax audit requirement, applies to all business except plying, hiring or leasing goods carriage which is covered u/s.44AE.

However, This scheme is not applicable to persons earning income in the nature of commission or brokerage or carrying on any agency business. Proposed to amend this scheme as per budget 2012-13 proposals, which will take retrospective effect from 1^st April, 2011.

Section 44AD Limit is proposed to be raised to 1 crore in Union budget 2012-13