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SECTION 44AE of the INCOME TAX ACT

Updated: Oct 14

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#SECTION44AE

#SECTION194C

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Applicability


  • All classifications of vehicles, whether heavy, medium or lower, are covered under this section.

  • If the assessee is engaged in plying, hiring, or leasing such goods but does not have more than 10 commodities to be transported at any given time during the previous year, the provisions of section 44AE will apply. Carriage.

  • The payer will not deduct TDS under section 194C if the transporter provides the payer with a PAN, regardless of the amount. If the assessee chose this section, no additional business expenses are permitted.


Calculating Income


The monthly income, or a portion of it, for each vehicle, is Rs. 7500.


Other restrictions


  • There will be no depreciation deductions permitted. However, in accordance with the provisions of the Income Tax Act u/s 32, depreciation will be calculated and subtracted from the asset's value on the balance sheet to determine the WDV of the block of an asset.

  • No deduction under the Income Tax Act will be permitted since the income determined in accordance with Section 44AE is estimated and regarded as the assessee's net income.

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