Question

A Truck Operator assessee owns three heavy goods vehicles for 8 months 14 days, four medium
goods vehicles for 7 months 8 days and two light goods vehicles for 9 months 23 days during the
previous year 2018-19. He did not keep any account for freight receipts and expenses. Cost of
vehicles is Rs. 80 lakh. Heavy goods vehicles unloaded weight is 14 ton per truck
Estimate his income from business u/s 44 AE of Income Tax Act, 1961 for the Assessment
Year 2019-20.​

Answer 1

Answer:

To give relief to small assessees, the Income-tax Law has incorporated a simple scheme commonly known as Presumptive Taxation Scheme. There are three schemes viz. the scheme of section 44AD, Section 44ADA and section 44AE. An assessee adopting these provisions is not required to maintain the regular books of account and also exempt from getting the accounts audited. In this advance learning we will cover the provisions of the presumptive taxation scheme provided in section 44AE.

The scheme of section 44AE is designed to give relief to small assessees engaged in the business of goods carriage. The detailed provisions in this regard are as follows: