Goods transport businesses (trucks, lorries) ke liye presumptive taxation. ₹7,500/month per LGV ya ₹1,000 per ton HGV. Up to 10 vehicles. ITR-4 simple filing.
Section 44AE GOODS TRANSPORT BUSINESSES (trucks, lorries) ke liye PRESUMPTIVE TAXATION. KEY: (1) ₹7,500 per month per goods vehicle (LIGHT goods vehicle - heavy goods vehicle ₹1,000 per ton per month, whichever higher). (2) UP TO 10 VEHICLES owned/leased. (3) ANY business structure (individual, HUF, firm, company). (4) NO detailed books required. (5) ITR-4 simple filing.
Section 44AE only for transporters owning/leasing UP TO 10 GOODS VEHICLES at any time during the year. Above 10 vehicles: must use ITR-3 with regular books + tax audit. Many small transporters fit within 10 — backbone of Indian logistics. Large fleets must follow regular regime.
LIGHT GOODS VEHICLE (LGV) — ₹7,500 per month per vehicle. HEAVY GOODS VEHICLE (HGV, > 12 tons) — ₹1,000 per ton per month (e.g., 25-ton truck = ₹25,000/month). USE HIGHER of the two if multiple sizes. EXAMPLE: 5 LGVs + 3 HGVs (20 tons each): (a) LGVs: 5 × 12 × ₹7,500 = ₹4.5L. (b) HGVs: 3 × 12 × ₹20,000 = ₹7.2L. Total deemed income: ₹11.7L.
(1) Deemed income taxed at slab rate (individuals/HUFs) or 30% (firms/companies). (2) ITR-4 SIMPLE filing. (3) Advance tax 100% by March 15. (4) GST: separately registered if turnover exceeds threshold. (5) No tax audit needed under 44AE. (6) Maintain vehicle ownership/lease records. (7) 5-year lock-in like 44AD.
EXAMPLE: Logistic company with 8 LGVs entire year. Deemed income: 8 × 12 × ₹7,500 = ₹7.2L. As individual: Old regime ₹7.2L with 80C ₹1.5L → tax ~₹15K. As firm: 30% × ₹7.2L = ₹2.16L tax. Individual saves ₹2L+ vs firm structure. Many small transporters operate as individual + 44AE for simplicity.