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Ramesh Sharma
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Asked: 2021-08-25T21:58:21+05:30 In:

Who is eligible for presumptive taxation scheme of section 44AE?

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Who is eligible for presumptive taxation scheme of section 44AE?
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    1. Enlightened

      1. Who Can Opt for Section 44AE? As per Section 44AE(1) of the Income Tax Act, 1961, the presumptive taxation scheme applies to: ✅ Eligible Assessees: Individuals Hindu Undivided Families (HUFs) Partnership firms (excluding LLPs) Companies ✅ Eligible Business: The assessee must be engaged in the busRead more

      1. Who Can Opt for Section 44AE?

      As per Section 44AE(1) of the Income Tax Act, 1961, the presumptive taxation scheme applies to:

      ✅ Eligible Assessees:

      • Individuals

      • Hindu Undivided Families (HUFs)

      • Partnership firms (excluding LLPs)

      • Companies

      ✅ Eligible Business:

      • The assessee must be engaged in the business of plying, hiring, or leasing goods carriages.

      ✅ Vehicle Ownership Limit:

      • The taxpayer must not own more than 10 goods vehicles at any time during the previous year.

      2. Who is NOT Eligible for Section 44AE?

      🚫 The following categories are NOT eligible for Section 44AE:

      1. Persons owning more than 10 goods vehicles at any time during the financial year.

      2. Limited Liability Partnerships (LLPs) – Since Section 44AE applies only to individuals, HUFs, firms (excluding LLPs), and companies, LLPs cannot opt for this scheme.

      3. Businesses other than plying, hiring, or leasing goods carriages.

      4. Taxpayers who wish to declare lower income than the prescribed presumptive income – They must maintain books of account under Section 44AA and get an audit under Section 44AB, if applicable.

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