Section 44AE of the Income Tax Act 1961: this article is about the relaxation provided to the heavy goods carriage owner having the heavy goods transportation of the goods under section 44AE of the Income Tax Act. This relaxation was given to the transportation vehicle owner because they were doing regularly strikes throughout the country for the relaxation to be given to them as they form integral part of the economy of the country.Section 44AE and the Section 44AD are the sections where the presumptive basis to the businesses. Section 44AE deals with the dealers which has the business of plying or leasing of goods carriage where as Section 44AD deals with the presumptive of the other Businesses.
What is exactly all about Section 44AE ?
If the transport owner shows the PAN card to the person to whom he is giving services and so required to take payment from such person than such person would not require to deduct TDS as he has shown the PAN and thus not required to deduct the TDS.In case of the transport agency, the maximum cash limit to be paid to the other person is limited to Rs 20000 in normal situations while in this situation any payment made by the transport agency to the other party than this limit would be Rs 35000 which is very much beneficial to the transport agency as there payments are mainly paid in cash only.
If the assesse want to show the lower income than the prescribed income under section than the tax payer needs to maintain such books of account irrespective of the turnover or the inventory or purchases than such tax payer would also require to get the books of the account audited.