Presumptive scheme — goods-carriage transporters

Owners of up to 10 goods carriages are taxed on a presumptive basis: ₹1,000 per ton of gross vehicle weight per month for heavy goods vehicles (>12,000 kg) and ₹7,500 per month per vehicle for others.

Key points

• §44AE is a presumptive taxation scheme for any assessee (individual, HUF, firm, LLP, company) engaged in the business of plying, hiring, or leasing GOODS CARRIAGES who does not own more than 10 such vehicles at ANY TIME during the previous year.
• PRESUMED INCOME per vehicle per month (or part thereof during which it was owned): (a) HEAVY GOODS VEHICLE (gross vehicle weight > 12,000 kg) — ₹1,000 per ton of gross weight;
• (b) OTHER goods carriages — ₹7,500 per month per vehicle.
• The assessee CAN declare HIGHER income;
• the presumed figure is a floor.
• If presumptive is adopted, the assessee is RELIEVED from maintaining books u/s 44AA and from §44AB tax audit.
• Once opted out, the assessee CANNOT re-enter the scheme for FIVE years.
• Salary / interest paid to PARTNERS is NOT deductible from §44AE income (firm-level).
• All other deductions u/s 30–38 (including depreciation) are deemed already allowed.

Reference: §44AE, ITA 1961 — under ITA 2025 (FY 26-27 onwards), this is §58