Sec 44ae - if owns more than 10 vehicles

How to compute the income of an assessee who owns more than 10 vehicles and having turnover less than 60 lakhs (say 59,90,000/-) ??

- Sec. 44AE is not applicable (it is applicable to those having max 10 vehicles).

- If Sec 44AD is applicable, then his presumptive income shall be 4,79,200/- which is less than the maximum presumptive income of an assessee having 10 vehicles only (5000x10x12 = 6,00,000/-) !!!!!!

Please try to solve this...

vinodaca74 @ gmail.com

 

 

Replies (3)

Dear Sir

With due respect section 44AD states that the scheme is applicable for any business except business already covered in 44AE

it bluntly says that business covered under section 44AE and it does not specify person covered in 44AD

so as to my openion the business itself is excluded and not the person covered / uncovered in section 44AE

please correct me if I am wrong

the normal provision would be applicable to the assessee

 

Regards

Agreed with Mr. Mahesh.

Dear Mahesh, Thank you very much for your valuable comments. But still my doubt is there.

As you told, Sec 44AD is not applicable. Forget about that section.

Now, in case of an assessee who owns 20 heavy vehicles, claims that his total income is Rs. 5 Lakhs only. (His turnover is Rs. 59,90,000/-).

Does he need to get his accounts audited ? If so, on what basis ?

Sec. 44 AE is not applicable, since he owns more than 10 vehicles.

Sec 44AB is not applicable , since his turnover is less than 60 Lakhs.

Please note that the income offered by him is less than that necessarily to be offered by an assessee who owns 10 heavy vehicles only.

So, the law applies in a liberal way to those who owns 11 vehicles or more, than to those small assessees having 10 or less vehicles.

Please correct me if I am wrong.

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