Presumptive Tax under section 58 (Table: Sl. No. 2) of the Income-tax Act, 2025 (section 44AE of the 1961 Act) explained: this guide covers what Section 58 Presumptive Tax means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
1. Goods Transport: A Unique Presumptive Scheme
The goods carriage transport business -- trucks, lorries, tankers, and other vehicles used for transporting goods -- operates under a unique presumptive taxation scheme under Section 58 of ITA 2025. Unlike the business scheme in section 58 (Table: Sl. No. 1) (where income is a percentage of turnover) or the professional scheme in section 58 (Table: Sl. No. 3) (where income is 50% of receipts), this goods carriage scheme provides a fixed income per vehicle per month -- making it extremely simple to compute income regardless of actual revenue generated.
2. Who Can Use Section 58?
Section 58 is available to:
- Any person who owns goods carriage vehicles (individual, HUF, partnership firm -- not company or LLP)
- Maximum 10 goods carriage vehicles at any point during the Tax Year
- If more than 10 vehicles are owned at any time during the year: not eligible for Section 58
- "Goods carriage" means any motor vehicle constructed or adapted for the carriage of goods
3. Presumptive Income: Two Calculations
Section 58 provides two different income computations based on vehicle type:
| Vehicle Type | Presumptive Income |
|---|---|
| Heavy goods vehicle (above 12,000 kg GVW) | Rs 1,000 per ton of gross vehicle weight (GVW) per month |
| Other goods carriage (up to 12,000 kg GVW) | Rs 7,500 per vehicle per month |
The calculation is per vehicle per month -- including months when the vehicle was idle. Income is computed for the number of months the vehicle was owned during the year, not the number of months it was actively earning.
4. Practical Computation Example
Illustrative only. Ram Transport owns 3 heavy trucks: one 16-ton truck, one 20-ton truck, and one 14-ton truck. All owned for the full 12 months of Tax Year 2026-27.
- 16-ton truck: Rs 1,000 x 16 tons x 12 months = Rs 1,92,000
- 20-ton truck: Rs 1,000 x 20 tons x 12 months = Rs 2,40,000
- 14-ton truck: Rs 1,000 x 14 tons x 12 months = Rs 1,68,000
- Total presumptive income = Rs 6,00,000
- Tax on Rs 6L (old regime, after standard deduction and Section 123): depends on other income
5. What Happens If Vehicle Is Sold Mid-Year
If a vehicle is acquired or disposed of during the year, income is computed only for the months it was owned:
- Vehicle purchased in September: owned for 7 months (September to March) -- income = Rs 1,000/ton x 7
- Vehicle sold in October: owned for 7 months (April to October) -- income = Rs 1,000/ton x 7
- Part-month: if owned for any part of the month, the whole month counts
6. What the Presumptive Income Covers
The Rs 1,000/ton or Rs 7,500/month income is deemed to be net of all expenses:
- Driver wages, helper wages
- Fuel costs
- Vehicle maintenance and tyres
- Insurance premium
- Toll, permit, and agent charges
- Loan interest on vehicle purchase
- Depreciation on the vehicle
No further deductions are available -- except personal investment deductions (Section 123, NPS, health insurance in old regime) which are separate from business income.
7. Advance Tax Under Section 58
The single-instalment rule does not extend to goods carriage operators. Section 408(2) allows the whole advance tax to be paid on or before 15 March only for an assessee who declares profits under section 58(2) (Table: Sl. No. 1 or 3). A transport operator under Table: Sl. No. 2 follows the four instalments of section 408(1): 15% by 15 June, 45% by 15 September, 75% by 15 December and the whole by 15 March. Interest for shortfall is under Section 424.
8. ITR Filing and Books Requirement
Section 58 taxpayers:
- File ITR-4 (Sugam) -- the simplest ITR form
- No books of accounts required
- No tax audit under Section 63 required (regardless of total vehicle income)
- Operator must still maintain basic vehicle registration records and trip logs for GST/permit compliance -- but not for income tax purposes
9. Opting Out of Section 58
If actual business income is lower than the Section 58 presumptive income (because trucks were idle for long periods, major breakdowns, etc.), the operator can opt out and declare actual income. Opting out requires:
- Maintaining regular books of accounts for the Transport business
- Getting accounts audited under Section 63 if required by other provisions
- Filing ITR-3 instead of ITR-4
- Unlike section 58 (Table: Sl. No. 1), there is no 5-year lock-out for opting out of this goods carriage scheme
10. Why TaxClue
Section 58 simplifies tax compliance for truck fleet operators -- no books, and a fixed income computation. TaxClue helps transport operators with ITR-4 filing and advance tax computation. Contact us under ITA 2025.