Income Tax
PGBP Income

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

Question 1

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

Question 2

Can in Case 1,assessee show PGBP income of 300000 in ITR ?

Question 3

Can in Case 2,assessee show PGBP income of 200000 in ITR ?

Question 4

Can in Case 3,assessee show loss of 100000 in ITR ?

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

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