Section 44AE of Income Tax Act "Special provision for computing profits and gains of business of plying, hiring or leasing goods carriages"
44AE. (1) Notwithstanding anything to the contrary
contained in sections 28 to 43C, in the case of an assessee,
who owns not more than ten goods carriages at any time
during the previous year and who is engaged in the business
of plying, hiring or leasing such goods carriages, the
income of such business chargeable to tax under the head
"Profits and gains of business or profession" shall be
deemed to be the aggregate of the profits and gains, from
all the goods carriages owned by him in the previous year,
computed in accordance with the provisions of sub-section
(2).
(2) For the purposes of sub-section (1), the profits and
gains from each goods carriage,-
(i) being a heavy goods vehicle, shall be an amount equal to
one thousand rupees per ton of gross vehicle weight or
unladen weight, as the case may be, for every month or part
of a month during which the heavy goods vehicle is owned by
the assessee in the previous year or an amount claimed to
have been actually earned from such vehicle, whichever is
higher;
(ii) other than heavy goods vehicle, shall be an amount
equal to seven thousand five hundred rupees for every month
or part of a month during which the goods carriage is owned
by the assessee in the previous year or an amount claimed to
have been actually earned from such goods carriage,
whichever is higher.
(3) Any deduction allowable under the provisions of sections
30 to 38 shall, for the purposes of sub-section (1), be
deemed to have been already given full effect to and no
further deduction under those sections shall be allowed :
Provided that where the assessee is a firm, the salary
and interest paid to its partners shall be deducted from the
income computed under sub-section (1) subject to the
conditions and limits specified in clause (b) of section 40.
(4) The written down value of any asset used for the purpose
of the business referred to in sub-section (1) shall be
deemed to have been calculated as if the assessee had
claimed and had been actually allowed the deduction in
respect of the depreciation for each of the relevant
assessment years.
(5) The provisions of sections 44AA and 44AB shall not apply
in so far as they relate to the business referred to in
sub-section (1) and in computing the monetary limits under
those sections, the gross receipts or, as the case may be,
the income from the said business shall be excluded.
(6) Nothing contained in the foregoing provisions of this
section shall apply, where the assessee claims and produces
evidence to prove that the profits and gains from the
aforesaid business during the previous year relevant to the
assessment year commencing on the 1st day of April, 1997 or
any earlier assessment year, are lower than the profits and
gains specified in sub-sections (1) and (2), and thereupon
the Assessing Officer shall proceed to make an assessment of
the total income or loss of the assessee and determine the
sum payable by the assessee on the basis of assessment made
under sub-section (3) of section 143.
(7) Notwithstanding anything contained in the foregoing
provisions of this section, an assessee may claim lower
profits and gains than the profits and gains specified in
sub-sections (1) and (2), if he keeps and maintains such
books of account and other documents as required under
sub-section (2) of section 44AA and gets his accounts
audited and furnishes a report of such audit as required
under section 44AB.
Explanation.-For the purposes of this section,-
(a) the expressions "goods carriage", "gross vehicle weight"
and "unladen weight" shall have the respective meanings
assigned to them in section 2 of the Motor Vehicles Act,
1988 (59 of 1988);
(aa) the expression "heavy goods vehicle" means any goods
carriage, the gross vehicle weight of which exceeds 12000
kilograms;
(b) an assessee, who is in possession of a goods carriage,
whether taken on hire purchase or on instalments and for
which the whole or part of the amount payable is still due,
shall be deemed to be the owner of such goods carriage.
What are Amounts not deductible? Section 40 of Income Tax Act 1961
What are Profits chargeable to tax? Section 41 of Income Tax Act 1961
Section 43AA Taxation of foreign exchange fluctuation
Section 43CB Computation of income from construction and service contracts
Section 44ADA Special provision for computing profits and gains of profession on presumptive basis