Regarding 44ae

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 August 2018 Please help

I have to file return in 44AE, so whether I have to fill gross receipt or net receipt after expenses in income.
If i am filing my return in 44AE more tax is coming, so can I show the Income in normal Business Income, after claiming all deductions for expenses. so that tax liability will be reduced.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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16 August 2018 To fill Gross receipts, Gross profit, Expenses and Net profit has to be filled in.

44AE is optional. You can opt normal method if you so wish provided you have to
maintain books of accounts as specified under section 44AA and get the books
audited under section 44AB.

Querist : Anonymous

Querist : Anonymous (Querist)

16 August 2018 Sir, If I opt for 44AE so Can I show monthly Income after deducting expenses ?

Querist : Anonymous

Querist : Anonymous (Querist)

16 August 2018 Sir, If I opt for 44AE so Can I show monthly Income after deducting expenses ?

Sir Suppose my Total Freight without deducting any exp for the year is approx 14 lacs and if I show my monthly Income as 14 lac /12 = 116000, Tax liability will be very high. so can I deduct expenses from this and then show in 44AE ?

Querist : Anonymous

Querist : Anonymous (Querist)

17 August 2018 Sir, If I opt for 44AE so Can I show monthly Income after deducting expenses ? Sir Suppose my Total Freight without deducting any exp for the year is approx 14 lacs and if I show my monthly Income as 14 lac /12 = 116000 Gross Income(T/o) . so can I deduct expenses from this and then show in 44AE ?

Sir, kindly help me with this.

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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20 July 2025 Under Section 44AE (presumptive taxation scheme for transporters), here’s how it works:

1. Gross Receipts or Net Receipts?
You cannot deduct expenses under Section 44AE.
Income is presumed at a fixed rate per vehicle per month irrespective of actual expenses.
You have to declare income based on number of vehicles and months, using prescribed rates (e.g., ₹7,500 or ₹1,000 per month per vehicle depending on vehicle type).
2. Can you show income after expenses under 44AE?
No. Section 44AE does not allow any deduction for expenses like fuel, repairs, salaries, etc.
The whole idea is to simplify tax by taxing presumed income.
3. Can you opt out of 44AE and show actual income with expenses?
Yes, you can choose NOT to opt for presumptive taxation and declare actual income and expenses under normal business income (I.e., under regular income tax provisions).
In that case, you must maintain books of accounts and get them audited if turnover crosses prescribed limits.
4. What if you file under 44AE and calculate monthly income as total freight / 12?
That’s not correct because 44AE income is not based on gross receipts but on a fixed presumptive amount per vehicle per month.
The tax liability might seem high because you are taxed on presumptive income regardless of actual expenses.

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