In case of an assessee who owns not more than 10 goods carriages or heavy goods vehicles during the previous year and is engaged in the business of plying, hiring or leasing such goods carriages, then the income of such business is taxable under the head “Profits and gains from Business& Profession”, your net income from goods carriage shall be assumed as Rs. 7,500 per month or part of a month for each Light Goods vehicle and Rs.1,000 per ton per vehicle per month for Heavy Goods Vehicle (Budget 2018- Applicable for FY 2018-19).
- The assessee cannot deduct any business expenses against the income.
- The scheme shall be applicable to individuals, HUF’s and partnership firms excluding Limited Liability Partnership Firms
- An assessee who has possession of a goods carriage, whether taken on hire purchase or on instalments basis and for which the whole or part of amount is still due, shall be deemed to be the owner of that goods carriage.
- Once the presumptive taxation scheme u/s 44AE has been opted by the assessee, he is required to file Income tax return under the presumptive taxation scheme only for a period of 5 years.
- In case a taxpayer has filed the return as a normal taxpayer under presumptive taxation scheme or opted out of presumptive taxation scheme, then he will be ceased to opt for benefit of presumptive taxation scheme for the next 5 years.
- ITR 4 would be applicable under this.