What is the treatment in case of sale of Trucks in case of Income considered in the sec44AE?

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What is the treatment in case of sale of Trucks in case of Income considered in the sec44AE?

Poll closed Sep 24, 2014.
  1. Whether there is a capital Gain?

    33.3%
  2. what is the taxability

    66.7%
Multiple votes are allowed.
  1. Mohit Pal

    Mohit Pal New Member

    What is the treatment in case of sale of Trucks in case of Income considered in the sec44AE?
     
  2. Mohammad Zeban

    Mohammad Zeban New Member

    It is a applicable for Income Tax under the head of Income from other source
     
  3. VAIBHAV DILIP RANE

    VAIBHAV DILIP RANE Active Member

    First know, Section 44AE :-

    > An Assessee engaged in business of plying, leasing or hiring goods carriage & does not OWN more than 10 goods carriages at any time during the previous year, shall be covered under section 44AE
    > Estimated income from each goods carriage shall be-
    For Heavy goods Vehicle- Rs. 3,500 p.m. (or part thereof) per carriage and
    For other Vehicle- Rs. 3,150 p.m. (or part thereof) per carriage
    > If assessee declared lower Income than such estimated income than, he have to get Accounts prepared u/s. 44AA and same to be Audited u/s. 44AB.
     
  4. NIRAJ JAIN

    NIRAJ JAIN New Member

    As per my concern, it should be taken as IFOS..
     
  5. VAIBHAV DILIP RANE

    VAIBHAV DILIP RANE Active Member

    ** Accounting Treatment :-

    For Sale of Truck,
    > Truck Shall be in Balance Sheet on the day of Sale at written down value,
    > Provide Depreciation before sale, i.e. from First day of Financial Year, up to the date of sale, And get WDV on date of Sale.
    > Reduce the Sale Consideration, from WDV on date of sale.
    > See Profit / Loss arising, and post such profit or loss in Profit & Loss A/c.
    Accounting Treatment ends here,...

    Since P/L on sale, is already has effects in Net Profit / Loss for the year,
    such NP/L for the year can be offer for Income Tax Computation directly under "IFBP", or IFOS as concern,...

    Also keep section 44AE provisions in mind, since you are assess under it.
     
  6. NIRAJ JAIN

    NIRAJ JAIN New Member

    But in any presumptive taxation business we do not have to prepare books of accounts.

    And any deduction allowable under the provisions of sections 30 to 38 shall, for the purposes of computation u/s 44AE, be deemed to have been already given full effect to and no further deduction under those sections shall be allowed :
     
  7. NIRAJ JAIN

    NIRAJ JAIN New Member

    Do correct me , if i have mistaken anything..
     
  8. VAIBHAV DILIP RANE

    VAIBHAV DILIP RANE Active Member

    Under Section 44AE, if you are above the minimum limit as stated, than no need for BOA,..

    But if assessee shows income less than as mentioned in 44AE or shown a loss,.. than BOA is to be maintained u/s. 44AA, and same to be audited u/s. 44AB
     
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