1. This section is applicable only on those persons who are engaged in the business of plying, hiring or leasing goods carriages and who owns not more than 10 such goods carriages.
2. This section has fixed monthly income chargeable to tax as business profit in respect of each type of vehicle which is as under
(a) In case of heavy duty (goods) vehicle an amount equal to 5,000 (for other vehicles 4,500) per month or part of the month during which the vehicle is owned by the assessee during the previous year.
he carriage may be or may not be used by the assessee during any month, income will be taxable.
(b) In case actual income claimed to have been actually earned by assessee is more than the above limits, then the actual income shall be subject to tax.
(c) It also provides an anti-avoidance clause stating that a prescribed fixed sum or a sum higher than the aforesaid sum claimed to have been earned by the assessee shall be deemed to be profits and gains of such business.
3. In case monetary limits of profit are adopted, it will be presumed that all the expenses u/s 30 to 38.
4. In case assessee is a firm. The remuneration allowable u/s 40(b) shall be deducted out of income computed u/s 44AD(l) (point 2 above).
5. It will also be presumed that full depreciation has been calculated and deducted for calculating written down value of the assets.
6. Assessee can claim deductions under section 80.
7. The provisions of section 44 AA and 44 AB shall not be applicable on such business and for calculating monetary limits the gross receipts or the income shall not be. considered.
8. The assessee may or may not apt for this scheme. In case he does not opt for this scheme he shall be required to maintain accounts and get them audited.