Taxation of Goods Carrying Vehicle U/s 44AE

IF A TRUCK HAS UNLADEN (EMPTY) WEIGHT 10 TONNE AND CERTIFIED GOODS CARRYING LOAD IS 25 TONNE, MEANS TRUCK'S MAXIMUM WEIGHT CAN BE 35 TONNE WHILE IN TRANSIT.

WHAT WILL BE ITS TOTAL INCOME UNDER SECTION 44AE OF INCOME TAX ACT FOR THE FINANCIAL YEAR 2019-20 IF IT WAS IN OPERATION FOR ALL THE MONTHS?

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Quick Summary
This discussion clarifies the taxation of goods carrying vehicles under Section 44AE of the Income Tax Act. It explains how to calculate presumptive income for a truck, considering its unladen weight and certified carrying load. The calculation involves a presumptive income of ₹1000 per tonne per month, and the final taxable income will be the higher of this presumptive amount or the actual income earned.

Income under section 44AE, When owning heavy goods vehicle we should offer 1000 per ton as income for a month


Income= 10 vehicles* 35 ton * 1000₹* 12 month =42,00,000
Income will be higher of the following :—
1. one truck *Rs.1000 per ton* 35 ton*12. months= 420000 ; OR
2. Amount claimed actually earned from such truck

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