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Meaning Under Sec.44AE

26 July 2020

what is the meaning of actual amount earned under sec.44AE.

whether total receipt as per 26AS can be taken as actual amount earned or less then 26AS can be taken as actual amount earned.

expert opinion required.

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12 Replies

CA ABHAY GUPTA (Practice) (3230 Points)
Replied 26 July 2020

Amount paid/credited in 26AS or amount paid/ credited in books of accounts which ever is higher..

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vikram chouhan (131 Points)
Replied 26 July 2020

Sir,
please suggest for an individual assessee

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annu Goyal (1102 Points)
Replied 26 July 2020

Sec 44AE stands for presumptive taxation for transporter,
This benefit is available is only when during FY transporter have upto 10 vehicles
then he can show 7500/-pm for one vehicle
and on case of 13ton Or more -1000par ton for pm for each vehicle.

vikram chouhan (131 Points)
Replied 26 July 2020

I have 2 vehicles having capacity less then 12MT and have attached both the vehicles in a company and recd month payment in my account after deducting TDS
I have received 620000 on which 6200 has been deducted but I actually earned around 3lakh rupees then why I will show 620000?

annu Goyal (1102 Points)
Replied 26 July 2020

Whether these 2 vehicles are used for whole year

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vikram chouhan (131 Points)
Replied 26 July 2020

Yes used for the whole year

annu Goyal (1102 Points)
Replied 26 July 2020

Then you should go with sec 44AE and show income as calculate as per sec 44AE
7500/- each month for each vehicle and claim refund

vikram chouhan (131 Points)
Replied 26 July 2020

What if I get an intimation as my 26AS shows income of 620000

CA ABHAY GUPTA (Practice) (3230 Points)
Replied 26 July 2020

Amount shown in 26AS is your receipt not an income, your receipt is 620000 but your income on such receipt as per 44AE is 7500 p.m. × 12 month × 2 truck = 180000/- show in this way you will not receive any notice

annu Goyal (1102 Points)
Replied 26 July 2020

As per my opinion, You are engaged in transporter business and having 2 vehicle soo you can claim benefit under sec 44 AE

Now if you want to go with normal provision
As in Form 26As 620000/- is your sale of service
You can claim exp against this income

soo don't worry go with sec 44AE, there will be no notice

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vikram chouhan (131 Points)
Replied 26 July 2020

Ok thanks for your valuable opinion