Answer ( 1 )

  1. An assessee who does not wish to compute profits and gains as per section 44AE i.e.,
    a) Rs. 7,500 per month or part of the month for each goods carriage during which the goods vehicle is owned by the taxpayer in the previous year. Part of the month would be considered as full month. (not applicable from A.Y 2019-20)
    If the actual income is higher than the presumptive rate, then such higher income can be declared if the taxpayer wants to declare as such.

    b) Rs. 7,500 per month or part of the month for each goods carriage (other than heavy goods vehicle) / Rs. 1000 per ton of gross vehicle weight per month or part of the month in case of heavy goods vehicle, during which the goods vehicle is owned by the taxpayer, in the previous year or actual amount earned whichever is higher . Part of the month would be considered as full month. (applicable from A.Y 2019-20)

    then profits and gains from such business shall be computed as per the normal provisions of the Income Tax Act.

    – Further, the assessee shall also be required to keep and maintain such books of account and other documents as are required under section 44AA and get them audited and furnish a report of such audit as required under section 44AB.

    – In other words, an assessee, who adopts section 44AE, is not required to maintain books of account under section 44AA or get them audited under section 44AB .

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