Presumptive Income U/s 44AE

[CA AJAY KUMAR AGRAWAL]

A transporter getting trucks on hire basis (per day or per month) & doing misc. transporting work. For that he collects payment from factories (after TDS) Can he opt for presumptive taxation u/s 44AE as he is not the owner of trucks? What if his total turnover (gross receipt from such misc. work) during the year is more than ₹ 1 Crores? & under which head his income will be assessed.

[DR.MARIAPPAN GOVINDARAJAN]

In my view he cannot.

AI Summary

Presumptive taxation under section 44AE not available to transporters hiring trucks; income assessed as business income. A transporter hiring trucks on a daily or monthly basis and collecting payments for miscellaneous transport services asked whether he could opt for presumptive taxation under section 44AE; the reply states he cannot, and that such receipts should be assessed as business income rather than under the presumptive scheme.