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Presumptive Income u/s 44AE

NARAYAN CHANDRA BHOWMIK (50 Points)

26 July 2024

I have a heavy goods vehicle with unladen weight 13000 kgs and laden weight 47000 kgs since April 2023. What will be my income u/s 44AE for AY: 2024-25, please advise

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Rama chary Rachakonda (Master in Accounts & high court Advocate) (8621 Points)
Replied 26 July 2024

Section 44AE of the Income Tax Act provides a presumptive taxation scheme for small transporters. To calculate income under this section: 1. _Determine the number of goods carriages:_ Count the number of goods carriages owned or held by the taxpayer. 2. _Calculate the presumptive income:_ Multiply the number of goods carriages by the prescribed amount: - ₹7,500 per month for each goods carriage (or part thereof) having a gross vehicle weight not exceeding 12,000 kg. - ₹10,000 per month for each goods carriage (or part thereof) having a gross vehicle weight exceeding 12,000 kg. 3. _Calculate the total presumptive income:_ Add up the presumptive income for all goods carriages. 4. _Report in ITR-4:_ Report the presumptive income in Form ITR-4, under the "Presumptive Income from Business" section. Example: - Number of goods carriages: 2 - Gross vehicle weight: 10,000 kg (below 12,000 kg) - Presumptive income per carriage: ₹7,500/month - Total presumptive income: 2 x ₹7,500 = ₹15,000/month - Annual presumptive income: ₹15,000 x 12 = ₹1,80,000 Note: - This is a simplified example. Consult a tax expert or chartered accountant to ensure accurate calculations and compliance with tax regulations. - The taxpayer can opt out of this scheme and declare actual income, but this requires maintaining detailed accounts and records.

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