Section 44AE : Income Tax Return of Transporter : ट्रांसपोर्टर इनकम टैक्स रिटर्न कैसे भरें
- Section 44AE provides for presumptive scheme of taxation (the scheme) in case of an assessee engaged in business of plying, hiring and leasing goods carriages.
- The scheme is optional.
- The scheme applies to an assessee who owns not more than ten goods carriages during the previous year.
- Only the ‘owner’ of the vehicle can opt for presumptive taxation
- Section 44AE(1) specifically provides that the provision of the section would apply only to an assessee who owns not more than ten goods carriages during the previous year and who is engaged in the business of plying, hiring or leasing such goods carriages.
- The owner of vehicles can opt for presumptive taxation under the scheme even he gives vehicles (owned by him) on hire or lease. Thus , the owner need not actually operate the vehicles.
- Operator Can not claim section 44AE benefit
- The person who merely operates the vehicle would not be eligible to opt for presumptive taxation. CBDT videCircular No. 684, dated 6-6-1994had also clarified the same as under:
- “The scheme applies to persons owning not more than ten trucks. It is not applicable to the persons who do not own any truck but operate truck taken on hire.”
w.e.f AY 2019-20 , Now there is distinction between heavy goods vehicle and other than heavy goods vehicles
As per Budget 2018 : The reason for the amendment given in the Memorandum (page 9) is as under:
“It is necessary to mention here that the legislative intent of introducing this provision was to give benefit to small transporters in order to reduce their compliance burden. Even though the profit margins of large capacity goods carriages are higher than small capacity goods carriages, the tax consequences are similar which is against the principle of tax equity.”
heavy goods vehicle
| in case of heavy goods vehicle (as specified therein), the income would be higher of the following: |
| ■ | an amount equal to Rs. 1,000 per tonne of gross vehicle weight or unladen weight, as the case may be, per month or part thereof for each goods vehicle; or | |
| ■ | an amount claimed to be actually earned. |
other than heavy goods vehicles
| ♦ | Clause (ii) of the sub-section provides that in case of vehicles other than heavy goods vehicles, the income would be higher of the following: |
| ■ | an amount equal to Rs. 7,500 per month or part thereof for each goods vehicle; or | |
| ■ | an amount claimed to be actually earned. |
Illustration
Suppose, an assessee owns 10 goods carriages during the year as under:
| Vehicle | Gross Weight in kg | Presumptive income in Rs. | |
| AY 2018-19 (FY 2017-18) | AY 2019-20 (FY 2018-19) | ||
| 1 | 7,500 | 7,500 | 7,500 |
| 2 | 9,000 | 7,500 | 7,500 |
| 3 | 10,000 | 7,500 | 7,500 |
| 4 | 12,000 | 7,500 | 7,500 |
| 5 | 12,650 | 7,500 | 13,000 (1000*13 tonnes)* |
| 6 | 15,125 | 7,500 | 15,000 (1000*15 tonnes)* |
| 7 | 17,000 | 7,500 | 17,000 (1000*17 tonnes) |
| 8 | 20,000 | 7,500 | 20,000 (1000*20 tonnes) |
| 9 | 22,000 | 7,500 | 22,000 (1000*22 tonnes) |
| 10 | 25,000 | 7,500 | 25,000 (1000*25 tonnes) |
| Income per month | 75,000 | 1,42,000 | |
| No. of Months | 12 | 12 | |
| Total business income | 9,00,000 | 17,04,000 | |
[1000 kg = 1 tonne]
* It is not clear whether only absolute number of tonnes are to be considered or
it is to be rounded off to the nearest tonne. In absence of guidance, it is rounded off to the nearest tonne.
| section 2 of the Motor Vehicles Act, 1988. The Motor Vehicles Act, 1988 defines following expressions:
|
| ■ | “goods carriage” means any motor vehicle constructed or adapted for use solely for the carriage of goods, or any motor vehicle not so constructed or adapted when used for the carriage of goods. | |
| ■ | “gross vehicle weight” means in respect of any vehicle the total weight of the vehicle and load certified and registered by the registering authority as permissible for that vehicle. | |
| ■ | “unladen weight” means the weight of a vehicle or trailer including all equipment ordinarily used with the vehicle or trailer when working, but excluding the weight of a driver or attendant; and where alternative parts or bodies are used the unladen weight of the vehicle means the weight of the vehicle with the heaviest such alternative part or body.
Newly inserted clause (aa) of the Explanation defines the expression “heavy goods vehicle”. It means any goods carriage, the gross vehicle weight of which exceeds 12000 kilograms. |
Note : any goods carriage vehicle of which gross vehicle weight exceeds 12000 kilograms is considered as “heavy goods vehicle” irrespective of its unladen weight.