Section 44AE - Trucks owned in name of Self & Partnership Firm

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  1. If Mr. A, a partner of a partnership firm owns 12 trucks out of which, ONLY 9 trucks are used by him for his "OWN BUSINESS" and the rest are used by the PARTNERSHIP FIRM. In that case, can Mr. A file his returns u/s 44AE?
     
  2. Amit Sahni

    Amit Sahni Active Member

    As per my understanding, the Partnership Firm and the Individual both have a separate PAN Card and the limit of 10 vehicles would not be cumulative and would be separate for both Partnership Firm as well as Individual.

    This is only my understanding. Waiting for more people to share their inputs.
     
  3. Amit Sahni

    Amit Sahni Active Member

    By the way, Section 44AE is applicable if the assessee does not own more than 10 vehicles.

    So, if the maximum vehicles that can be owned by a assessee to claim benefit of section 44ae is 10 and not 9
     
  4. Mr Amit Sahni , The documents of title for more than 10 vehicles are in the name of the individual assessee , Income of 9 trucks is shown in individual's books and balance 3 trucks owned by the individual is capitalised in the firm's books and the corresponding revenue for those 3 trucks is recorded in firm's books.
    My doubt is whether the individual can still claim 44AE even though the document of titles for 3 trucks used in the firm is in the name of the individual assessee. By looking at the RC books we can identify that 9+3 i.e, 12 trucks are owned by individual.
     
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