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
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
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
