Question ID : 38111

AMENDMENT U/S 44 AE

Pl. clarify applicability of Sec 44AE in view of amendment made by Finance Act 2018 for current F.Y. 18-19 i.e. A.Y. 2019-20.The amended section uses the words "gross vehicle weight or unladen weight as the case may be @ Rs. 1000/- per ton. Now, the R/C of a heavy Goods Vehicle(HGV) mentions both the weights i.e. Gross Vehicle weight 49 Tons and Unladen weight 12.2 Tons meaning thereby that the HGV can load maximum 36.8 Tons of Goods. Presumptive Income till March 18 was Rs. 7,500/-p.m. hence if Unladen Weight is taken it will be Rs. 12200/-per Truck p.m. but if Gross Vehicle Weight is taken it will be Rs. 36,800/- per Truck p.m. making it about 5 times more than of the present limit. You are requested to clarify why both the weights have simaltaneously been mentioned in the Section, which weight has to be considered for computing Income u/s 44AE and why the word as the case may be has been mentioned therein. As per new ITR form for A.Y. 2019-20, “TONNAGE CAPACITY” is being asked for the calculation of income u/s 44AE. Kindly clarify what should be the tonnage capacity in above case either 12.20 Tons or 36.80 Tons or 49.00 Tons ?

There is no clarification from Department. However, as per Motor Vehicle Act unladen weight is applicable to Tractor and roller, which has no weight of goods and gross vehicle weight is applicable to other heavy goods vehicle. Hence as per my view even if both are mentioned, only applicable weight should be considered.