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1 t is applicable only to small goods transporters who
Own not more 10 goods carriages( anytime during the year)
and
are in business of plying / hiring / leasing of goods carriage
2 In this Case, 7500 p.m. per vehicle is treated as Income.
Part of Month is treated as full month for Computation
(Earlier, limit was 5000 p.m per vehicle for Heavy goods vehicle and 4500 for Other goods Vehicle)
Example
Truck Purchased on 1 April=7500*12=90000 p.a. is PGBP Income
Truck purchased on 1 Jan=7500*3=22500 p,a is PGBP Income (Jan to March are 3 months)
Truck purchased on 4 Jan=7500*3=22500 p,a is PGBP Income (Part of month is full month)
In case of old truck purchased in last year,=7500*12=90000 p,a is PGBP Income
3.This Section is for All Assessees including Companies and LLP
Following is the profit and loss of Goods Transport Business
What is PGBP Income as per Section 44AE?
| Particulars | Case 1 | Case 2 | Case 3 | Case 4 |
| No of Trucks | 2 | 8 | 8 | 11 |
| Income from trucks | 700000 | 4000000 | 4000000 | 6000000 |
| Less | ||||
| Expenses | 400000 | 3800000 | 4100000 | 5200000 |
| Profit/loss | 300000 | 200000 | -100000 | 800000 |
| Particulars | Case 1 | Case 2 | Case 3 | Case 4 |
| No of Trucks | 2 | 8 | 8 | 11 |
| Income per Month per truck | 7500 | 7500 | 7500 | Not Applicable |
| PGBP Income per month | 15000 | 60000 | 60000 | Not Applicable |
| PGBP Income per annum | 180000 | 720000 | 720000 | Not Applicable |
Question 2
Can in Case 1,assessee show PGBP income of 300000 in ITR ?
View AnswerYes,assessee can show PGBP income more than or equal to Rs 7500 p,m
Question 3
Can in Case 2,assessee show PGBP income of 200000 in ITR ?
View AnswerYes, but he has to compulsory maintain books of accounts and get the accounts audited under Section 44AB.
Question 4
Can in Case 3,assessee show loss of 100000 in ITR ?
View AnswerYes, but he has to compulsory maintain books of accounts and get the accounts audited under Section 44AB.
Question 5
Mr. X commenced the business of operating goods vehicles on 1.4.2014. He purchased the following vehicles during the P.Y.2014-15. Compute his income under section 44AE for A.Y.2015-16 Would your answer change if the two light goods vehicles purchased in April, 2014 were put to use only in July, 2014?
| Type of Vehicle | Number | Date of Purchase |
| (1) Light Goods Vehicles | 2 | 10.4.2014 |
| 1 | 15.3.2015 | |
| (2) Medium Goods Vehicles | 3 | 16.7.2014 |
| 1 | 2.1.2015 | |
| (2) Heavy Goods Vehicles | 2 | 29.8.2014 |
| 1 | 23.2.2015 |
Since Mr. X does not own more than 10 vehicles at any time during the previous year 2014-15, he is eligible to opt for presumptive taxation scheme under section 44AE. Rs 7,500 per month or part of month for which each goods carriage is owned by him would be deemed as his profits and gains from such goods carriage.
| 1 | 2 | 3 | 4 |
| Number of Vehicles | Date of purchase | no. of months for which vehicle is owned | no. of months for which vehicle is owned |
| 2 | 10.4.2014 | 12 | 24 |
| 1 | 15.3.2015 | 1 | 1 |
| 3 | 16.7.2014 | 9 | 27 |
| 1 | 2.1.2015 | 3 | 3 |
| 2 | 29.8.2014 | 8 | 16 |
| 1 | 23.2.2015 | 2 | 2 |
| 10 | Total | 73 |
Therefore, presumptive income of Mr. X under section 44AE for A.Y.2015-16 is Rs 5,47,500, being 73 × Rs 7,500. The answer would remain the same even if the two vehicles purchased in April, 2014 were put to use only in July, 2014, since the presumptive income of Rs 7,500 per month has to be calculated per month or part of the month for which the vehicle is owned by Mr. X.
Note:-All Other Points similar to Section 4AE
(4) No deduction of any expenses under section 30 to 38 is allowed
(5) If the assessee feels that his profit is less than 7500 p.m per vehicle, then he has to compulsory maintain books of accounts and get the accounts audited under Section 44AB.
(6) They can claim other deduction like chapter VIA dedication (80C) etc. or section 40(b) Deduction for partners.
(7) They also do not have to pay advance tax on this Income.
(8) Capital Gains will be computed assuming Depreciation has been charged on Assets
NON APPLICABILITY
(1)Holdng more than 10 trucks during anytime
If a person had 12 trucks and later on he sold 2 then he is not covered under the section as he had more than 10 trucks during the previous years
2. Passenger Transport Business(Cab Business) not covered
3 Note:- Here,date of purchase is important,not put to use
