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Section 44AE

Varun Jain (CA, B.com ) (392 Points)

24 April 2010

all friends , as per section 44AD of income tax a person who is engaged in the business of civil construction whose income is on the presumptive basis is 8% of the total gross receipt.And also no further deduction is allowed as per section 28 to 44.However, loss under the head business profession is allowed to set off u/s 72.

So, I want to know , Is the same provision is applicable in determining the income u/s 44AE and 44AF,And also provision relating to it explain in brief.

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5 Replies

ViveK (.) (312 Points)
Replied 25 April 2010

in sec 44AE

business is of plying hiring or leasing goods carriages

condition-- not more than 10 goods carriages at any time during the year(weather on hire purchase or lease)

calculation of income--

heavy vehicle--- Rs 3500 per vehicle per month(5000 for AS 2011-12)

light vehicle------ Rs 3150 per vehicle per month(4500 for AS 2011-12)

rest provisions are same as section AD

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ViveK (.) (312 Points)
Replied 25 April 2010

sec 44 AF

business-- retail trade

condition---- turnover/gross receipts less than 40 lacs

calculation of income

5% of total turnover/gross receipts(instead of 8% in section AD)

ViveK (.) (312 Points)
Replied 25 April 2010

From AS year 2011-12

sec 44AD and AF will be omitted and new section 44AD will satisfy the need of both section

NEW sec 44AD is as follow

business--- any except covered by sec 44AE

condition--- turnover/receipts less than 40 lacs

calculation of income

8% of turnover/gross receipts

DT Fundas - Tarun rustagi ( Author) (1150 Points)
Replied 25 April 2010

dear varun

no deduction is available for computing the income under these premsumptive income taxation whether it is 44AD or 44AF OR 44AE.

the only deduction is available is if the above is partnership firm then we can deduct the aount of remuniration and interest paid to partners subject to proviso of sec40(b)

vikash rathi (Chartered Accountant) (787 Points)
Replied 25 April 2010

Originally posted by : tarun rustagi
	dear varun no deduction is available for computing the income under these premsumptive income taxation whether it is 44AD or 44AF OR 44AE. the only deduction is available is if the above is partnership firm then we can deduct the aount of remuniration and interest paid to partners subject to proviso of sec40(b)