Proposed to amend the section 44AE in Finance Bill (Amendment of section 44AE)
Clause 16 of Finance Bill-2018, In section 44AE of the Income-tax Act, This amendment will take effect from 1st April, 2019 and will, accordingly, apply in relation to the A.Y 2019-2020 and subsequent years,(Amendment of section 44AE)—
(a) for sub-section (2), the following sub-section shall be substituted, namely:––
“(2) For the purposes of sub-section (1), the profits and gains from each goods carriage,—
(i) Being a heavy goods vehicle, shall be an amount equal to 1000.00 (one thousand rupees) per ton of gross vehicle weight or unladen weight, as the case may be, for every month or part of a month during which the heavy goods vehicle is owned by the assesses in the previous year or an amount claimed to have been actually earned from such vehicle, whichever is higher;
(ii) Other than heavy goods vehicle, shall be an amount equal to 7500.00 (seven thousand five hundred) rupees for every month or part of a month during which the goods carriage is owned by the assessee in the previous year or an amount claimed to have been actually earned from such goods carriage, whichever is higher.”;
(b) in the Explanation, for clause (a), the following clauses shall be substituted, namely:–
‘(a) the expressions “goods carriage”, “gross vehicle weight” and “unladen weight” shall have the respective meanings assigned to them in section 2 of the Motor Vehicles Act, 1988;
(aa) the expression “heavy goods vehicle” means any goods carriage, the gross vehicle weight of which exceeds 12000 kilograms;’.
