Presumptive Income under Section 44AE
Presumptive income for a small goods-transport operator (up to 10 vehicles) — ₹1,000 per tonne per month for heavy goods vehicles, ₹7,500 per month for other goods vehicles.
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Presumptive income — 44AE: how it works and FAQs
FY 2025-26 (Income-tax Act 1961) and FY 2026-27 (Income-tax Act 2025) · Updated
How it works
Under section 44AE a goods-transport operator who owns up to 10 vehicles can declare presumptive income instead of keeping books: ₹1,000 per tonne of gross weight per month for a heavy goods vehicle (over 12 tonnes), and ₹7,500 per month for any other goods vehicle.
Under section 44AE a goods-transport operator who owns up to 10 vehicles can declare presumptive income instead of keeping books: ₹1,000 per tonne of gross weight per month for a heavy goods vehicle (over 12 tonnes), and ₹7,500 per month for any other goods vehicle. Income is summed across vehicles, and you may declare a higher actual profit per vehicle.
- For each vehicle, count the months it was owned in the year.
- Heavy goods vehicle (gross weight over 12 tonnes): income = ₹1,000 × tonnes × months.
- Any other goods vehicle: income = ₹7,500 × months.
- Take the higher of the presumptive amount and any larger profit you declare, then add across all vehicles.
- The scheme is only for operators who own 10 or fewer goods vehicles at any time in the year.
Worked example
Presumptive income under section 44AE = ₹3,90,000.
An operator owns one heavy goods vehicle of 25 tonnes for all 12 months and one ordinary goods vehicle for all 12 months.
- Heavy: ₹1,000 × 25 × 12 = ₹3,00,000.
- Other: ₹7,500 × 12 = ₹90,000.
Presumptive income under section 44AE = ₹3,90,000.
Frequently asked questions
How is presumptive income under 44AE calculated?
For a heavy goods vehicle it is ₹1,000 per tonne of gross weight per month; for any other goods vehicle it is ₹7,500 per month. Income is added across all vehicles.
What is a heavy goods vehicle under section 44AE?
A goods vehicle with a gross vehicle weight of more than 12 tonnes. It is charged at ₹1,000 per tonne per month, unlike other goods vehicles at ₹7,500 per month.
How many vehicles can use section 44AE?
The scheme is available only if you own 10 or fewer goods vehicles at any time during the year.
Can I declare a higher income than the presumptive amount?
Yes. For each vehicle you may declare a higher actual profit, and that higher figure is used instead of the presumptive amount.
Every figure the calculator shows lists the sections it relies on under “Legal basis”. For guidance only — not tax advice.