THE FOURTEENTH SCHEDULE
DETERMINATION OF INCOME ON A PRESUMPTIVE BASIS
The income from the business specified in column 2 of Table, carried on by the assessee at any time during the financial year, shall, notwithstanding anything contained in this sub-chapter, be the amount specified in column 3 thereof, subject to the conditions specified in column 4 therein.
TABLE
|
Sl.No. |
Nature of Business |
Amount of income |
Conditions |
|
(1) |
(2) |
(3) |
(4) |
|
1. |
Buisness of plying, hiring or leasing of heavy goods vehicle. |
The aggregate amount of income from all the heavy goods vehicles owned by the assessee, calculated at the rate of five thousand rupees from each heavy goods vehicle for every month or part of a month during which the vehicle is owned by the assessee in the financial year. |
The number of heavy goods vehicles owned by the assessee in the financial year should be ten or less. |
|
2. |
Business of plying, hiring or leasing of light goods vehicle. |
The aggregate amount of income from all the light goods vehicles owned by the assessee, calculated at the rate of four thousand five hundred rupees from each light goods vehicle for every month or part of a month during which the vehicle is owned by the assessee in the financial year. |
The number of light goods vehicles owned by the assessee at any time in the financial year should be ten or less. |
|
3. |
Any business other than- |
Eight per cent. of the total turnover, or gross receipts, of the assessee in the financial year from the business;
|
The total turnover or gross receipts of the assessee in the financial year from the business is one crore rupees or less. |
|
|
(i) the business referred to in serial numbers 1 and 2; and
(ii) any profession. |
|
|
|
4. |
Business of civil construction in connection with a turnkey power project approved by the Central Government in this behalf. |
The amount shall be a sum equal to ten per cent. of the amount paid or payable (whether in or out of India), directly or indirectly, to the assessee or to any person on his behalf on account of the civil construction. |
The assessee is a foreign company. |
|
5. |
Business of erection of plant or machinery or testing or commissioning thereof, in connection with a turnkey power project approved by the Central Government in this behalf. |
The amount shall be a sum equal to ten per cent. of the amount paid or payable (whether in or out of India), directly or indirectly, to the assessee or to any person on his behalf on account of erection, testing or commissioning. |
The assessee is a foreign company. |
|
6. |
Business of providing services or facilities in connection with the prospecting for, or extraction or production of, mineral oil. |
The amount shall be a sum equal to ten per cent. of aggregate of,- (i) the amount paid or payable (whether in or out of India), directly or indirectly, to the assessee or to any person on his behalf on account of the provisions of services and facilities in connection with the prospecting for, or extraction or production of, mineral oils in India; and
(ii) the amount received or deemed to be received in India, directly or indirectly, by or on behalf of the assessee on account of the provisions of services and facilities in connection with the prospecting for, or extraction or production of, mineral oils outside India; |
The assessee is a non-resident. |
|
7. |
Business of supplying plant and machinery on hire used, or to be used, in the prospecting for, or extraction or production of, mineral oils. |
The amount shall be a sum equal to ten per cent. of aggregate of,- (i) the amount paid or payable (whether in or out of India), directly or indirectly, to the assessee or to any person on his behalf on account of the supply of plant and machinery on hire used, or to be used, in the prospecting for, or extraction or production of, mineral oils in India; and
(ii) the amount received or deemed to be received in India, directly or indirectly, by or on behalf of the assessee on account of the supply of plant and machinery on hire used, or to be used, in the prospecting for, or extraction or production of, mineral oils outside India. |
The assessee is a non-resident. |
|
8. |
Business of opeartion of ships(including an arrangement such as slot charter, space charter or joint charter) |
Seven and a half per cent. of transportation charges on account of the carriage of passengers, live-stock, mail or goods. |
The assessee is a non-resident. |
|
9. |
Business of operation of aircraft (including an arrangement such as slot charter, space charter or joint charter). |
Five per cent. of the transportation charges on account of the carriage of passengers, live-stock, mail or goods; |
The assessee is a non-resident. |
2. The amount of income determined under rule 1 shall be further increased by the excess of the amount of income, if any, actually earned by the assessee from the business over the amount specified in that sub-section.
3. The income computed under Rule 1 shall be presumed to have been computed after giving full effect to every loss, allowance or deduction under this Code.
4. The written down value of any business asset used for the purposes of earning income from the business specified in column 2 of Table in rule 1 shall be computed as if the person has claimed and has been actually allowed the deduction in respect of depreciation under section 36, initial depreciation under section 37 and terminal allowance under section 38.
5. The amount of common costs (including depreciation) attributable to the business specified in column 2 of Table in rule 1 and presumed to have been allowed under Rule 3 shall be determined in the prescribed manner.
6. The provisions of this section shall not apply to-
(a) the business referred to in column 2 of the Table in rule (1) if,-
(i) the assessee keeps and maintains all the books of account and other documents referred to in section 85 in respect of the business regardless of anything to the contrary contained in that section;
(ii) the assessee gets his accounts audited and obtains a report of such audit as required under section 86 in respect of the business regardless of anything to the contrary contained in that section;
(iii) the accounts are correct and complete to the satisfaction of the Assessing Officer;
(iv) the income can be properly deduced from the accounts; and
(v) the assessee produces the books of accounts and other documents before the Assessing Officer, as and when called for;
(b) any income which is derived from any special source.
