Section 44AE of the Income Tax Act, 1961 in India deals with presumptive taxation for businesses involved in plying, hiring, or leasing of goods carriages (i.e., transport businesses). This section is aimed at simplifying taxation for small transporters.

Here are the key rules and provisions under Section 44AE:

✅ Applicability

Section 44AE applies to:

• Individuals, HUFs, Partnership Firms, and companies

• Who own not more than 10 goods vehicles at any time during the previous year

• Engaged in the business of plying, hiring, or leasing goods carriages

💰 Presumptive Income Calculation

1. For Heavy Goods Vehicles (more than 12,000 kg gross vehicle weight)

• Presumptive Income = ₹1,000 per ton of gross vehicle weight (GVW) or unladen weight per month or part of the month for which the vehicle is owned.

2. For Other Goods Vehicles (less than or equal to 12,000 kg)

• Presumptive Income = ₹7,500 per vehicle per month (or part of the month)

📆 Time Period

• Income is calculated for every month or part of the month the vehicle is owned during the financial year.

📚 Books of Accounts and Audit

• Assessee opting for Section 44AE is not required to maintain books of account under Section 44AA.

• Tax audit under Section 44AB is also not required.