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Section 44AE of the Income Tax Act provides taxation rules for small enterprises in playing, hiring, and leasing transport vehicles for carrying goods to other places. The income of the assessees is calculated on a fixed rate as per the vehicle. This section makes the calculation of the tax process easy for transporters, small by a fixed income rate on every vehicle.
This section applies to any entity, like individuals, partnership firms, private companies, and Hindu undivided families, that deals with hiring, leasing, or using vehicles or carrying goods.
The eligibility criteria for the section 44AE are:
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What are the exemptions under section 44AE?
I have got the exemption under section 44AE of the Income Tax Act because I have chosen the presumptive exemption and got the deductions under section 80C.
You cannot claim any deduction according to Section 44AE of the Income Tax Act under Section 30-38. However, if you have chosen presumptive taxation, then you can get deductions and exemptions under sections 80C to 80-U.
If you are a part of a partnership firm, you can easily claim a deduction and an exemption on the interest and salary paid to the partners.