Sec. 44AE of Income Tax Act, 1961

[Rajan Kumar and associates]

Whether a person doesn't own Motor Vehicle, but having the same on hire/lease. is he eligible to opt Presumptive Taxation u/s 44AE?

AI Summary

Whether hirers/lessees of goods carriages can claim presumptive taxation under Section 44AE despite not owning the vehicles Issue concerns whether a taxpayer who does not own goods carriages but hires or leases them can opt for presumptive taxation under Section 44AE. The provision refers to an assessee who 'owns not more than ten goods carriages,' creating a statutory tension: a purposive reading supports inclusion of operators who carry on hiring/plying/leasing using leased vehicles, while a strict textual reading limits the benefit to owners. Return forms requiring registration number and ownership status reflect this ambiguity. Practical resolution depends on facts and risk appetite; taxpayers should consider filing under general provisions, seek professional advice, or obtain an authoritative ruling for certainty.