Could a person owning more than 10 goods vehicles adopt the presumptive taxation scheme of section 44AE?
According
to PTS scheme of section 44AE, the income will be computed at the rate of Rs.
7,500 per vehicle per month. In this case the taxpayer is eligible for further
deductions from the presumptive income declaration.
- As per section 44AE, no expenses
shall be allowed or disallowed. The income computed at the presumptive rate
will be the final taxable income
- However, if the taxpayer is a partnership firm opting for the presumptive taxation scheme, it can claim deduction on remuneration and interest paid to partners (computed as per the Income-tax Act) from the PTS income computed
- You cannot claim any deduction on depreciation. But the depreciated value of any asset used in the business will be calculated as if depreciation as per section 32 is claimed and has actually been allowed