This section is used to calculate deduction in case of those in Goods Transport Business

As per this section,if a person has upto 10 trucks,there is no need to maintain books of accounts

Flat 7500 per month will be treated as Business Income for each truck

The limit was same for Heavy goods vehicle(large truck) and light good vehicle(small truck)

Now in FY 2018-19(Assessment Year 2019-20)

Limit increased for Heavy goods vehicle

It will be Rs 1000/tonne of Gross vehicle weight or unladen weight per month

However for light motor vehicles,rates are same as 7500 pm

 

Summary

Truck Type EARLIER
Income per month per truck
NOW
Income per month per truck
Heavy goods Vehicle 7500 1000* No of tonnes
Others (Light Goods Vehicle) 7500 7500

 



Example

Suppose a person has 2 trucks

One is Large Truck (Gross Vehicle Weight 25000 kg) 

Second is Small Trucks (Gross Vehicle Weight 7000 kg)

Both trucks are used through out the year

Calculate PGBP Income in FY 2017-18 AND FY 2018-19

 

Answer

In Financial Year 2017-18 (AY 2018-19)


Weight of Truck is not relevant

Profit of both trucks will be calculated @ 7500 per truck per month

44AE OLD.jpg

In Financial Year 2018-19 (AY 2019-20)


Weight of Truck is not relevant for Small Truck

But for Large truck,we will consider weight in tonnes

Weight in tonnes of Large Truck=25000/1000=25 tonnes

44ae new.jpg

 

How to Find Whether Truck is Small Truck or Large Truck

IF weight of truck upto 12000 Kg

Small Truck

IF weight of truck more than 12000 Kg

Large Truck

 

  1. Tax Practical
  2. Budget Amendments - Changes in 2019

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 10 years. He also provides Accounts Tax GST Training in Delhi and Pune.