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Section 44AE · Presumptive Taxation · Goods Carriage

Section 44AE Calculator

Work out the presumptive income for your goods-transport business — heavy vehicles at ₹1,000 per tonne per month, other vehicles at ₹7,500 each per month. No books, no audit.

Category
Income Tax & TDS
Takes about
1 min
Updated
Sep 2026
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Enter your figures — the result on the right updates as you type.

Full breakdown below ↓
🚛 Heavy goods vehicles > 12,000 kg
Number of heavy vehicles Gross weight above 12,000 kg
No.
Gross vehicle weight each In tonnes (per vehicle)
T
Heavy vehicle presumptive income = ₹1,000 × gross weight (tonnes) × months, per vehicle.
🚚 Other goods vehicles ≤ 12,000 kg
Number of other vehicles Light / medium goods carriage
No.
Other vehicle presumptive income = ₹7,500 × months, per vehicle (weight ignored).
🗓️ Months held
Months owned in the year Applied to every vehicle (part-month = full month)
Mo.
Section 44AE can be used for a maximum of 10 goods vehicles at any time during the year. Beyond that, normal books and audit rules apply.

Presumptive income breakdown

CategoryPresumptive income
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Disclaimer: Indicative estimate of presumptive income under Section 44AE of the Income-tax Act. This is the minimum taxable business income; you may declare a higher figure. Applicable only to owners of up to 10 goods carriages. Actual tax depends on your total income, deductions and slab.

Section 44AE — presumptive tax for transporters

Section 44AE lets a person who owns up to 10 goods carriages declare income on a presumptive basis — a fixed amount per vehicle per month — without maintaining books of account or getting them audited. The income is set by law, not by your actual profit, and you can always declare a higher figure if your real income is more.

₹1,000
Per tonne of gross vehicle weight per month for heavy vehicles (>12,000 kg)
₹7,500
Per month per vehicle for other (light / medium) goods vehicles
10
Maximum goods vehicles you can own to use Section 44AE
₹0
Bookkeeping & audit cost — no accounts required when you opt in

Presumptive rates — heavy vs other

Since 1 April 2018, heavy goods vehicles are taxed by weight while all other goods vehicles use a flat monthly rate. A vehicle is "heavy" if its gross vehicle weight (or unladen weight, as applicable) exceeds 12,000 kg (12 tonnes).

Heavy Goods Vehicle (>12,000 kg)
Rate₹1,000 / tonne / month
BasisGross vehicle weight
Per 15-tonne truck / month₹15,000
Per 15-tonne truck / year₹1,80,000
Other Goods Vehicle (≤12,000 kg)
Rate₹7,500 / vehicle / month
BasisPer vehicle (weight ignored)
Per vehicle / year₹90,000
Part of a monthCounted as a full month
The presumptive figure is the minimum — you may declare more if actual income is higher. No deduction under Sections 30–38 is separately allowed against presumptive income (except partner remuneration/interest for firms).

Worked example

A transporter owns 2 heavy trucks (15 tonnes each) and 3 light goods vehicles, all held for the full 12 months. Here is the presumptive income under Section 44AE:

2 heavy @ 15 T + 3 other · held 12 months
Heavy: ₹1,000 × 15 T × 12 mo × 2 trucks₹3,60,000
Other: ₹7,500 × 12 mo × 3 vehicles₹2,70,000
Total presumptive income₹6,30,000
This ₹6,30,000 is the minimum business income to declare in ITR-4. Your actual tax then depends on total income, other heads and slab. Since no books are kept, advance tax is still payable if your total tax exceeds ₹10,000.

Key terms explained

Heavy goods vehicle

A goods carriage whose gross vehicle weight exceeds 12,000 kg (12 tonnes). Its presumptive income is weight-linked at ₹1,000 per tonne per month, so a heavier truck declares more income.

Other goods vehicle

Any goods carriage that is not heavy (≤12,000 kg). It uses a flat ₹7,500 per month regardless of tonnage — light and medium trucks, tempos and pickups.

Part of a month

If a vehicle is owned for only part of a month, that part is treated as a full month. So a truck bought mid-month still counts that month in full for the calculation.

No books, no audit

Opting into 44AE means no books of account and no tax audit for the transport income — as long as you own 10 or fewer goods vehicles and declare at least the presumptive amount.

Questions people ask

Short answers on Section 44AE Transporter Income. Tap a question to open it.

01Who can use section 44AE?

A person engaged in the business of plying, hiring or leasing goods carriages who does not own more than ten goods carriages at any time during the year. Ownership includes vehicles taken on hire purchase or instalment.

02How is the presumed income computed?

For a heavy goods vehicle — gross vehicle weight above 12,000 kg — ₹1,000 per ton of gross vehicle weight per month or part of a month. For any other goods carriage, ₹7,500 per month or part of a month. The count runs per vehicle for the months it was owned.

03Can I declare a lower income?

Yes, but then books must be maintained under section 44AA and audited under section 44AB, regardless of turnover.

04Are any further deductions allowed?

No. The presumed income is deemed to be after every deduction under sections 30 to 38, including depreciation, and the written down value is treated as having been reduced accordingly.

05Does section 44AE apply to passenger vehicles?

No. It applies only to goods carriages. A passenger transport business would look to section 44AD instead, subject to its own conditions and limits.

Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.