A truck owner with three 16-tonne lorries pays tax on a fixed Rs 5,76,000, declares it on ITR-4 Sugam, keeps no books, and skips the audit. That is the deal Section 44AE of the Income Tax Act, 1961 offers small goods transporters who own up to ten vehicles.
This page leads with the rate table and a worked example, then covers who qualifies, who should opt out, the common mistakes, and the FAQs.
Under Section 44AE, your taxable income is a flat figure per vehicle per month. You do not calculate actual profit. The rate depends only on whether the vehicle is a heavy goods vehicle.
| Vehicle type | Statutory test | Presumptive income |
|---|---|---|
| Heavy goods vehicle | Gross vehicle weight over 12,000 kg | Rs 1,000 per ton of gross vehicle weight, or unladen weight as the case may be, for every month or part of a month |
| Any other goods carriage | Gross vehicle weight 12,000 kg or less | Rs 7,500 for every month or part of a month |
The statute says “one thousand rupees per ton of gross vehicle weight or unladen weight, as the case may be, for every month or part of a month” for heavy goods vehicles. A “heavy goods vehicle” is defined in the Explanation to Section 44AE as “any goods carriage, the gross vehicle weight of which exceeds 12000 kilograms”. The terms goods carriage, gross vehicle weight and unladen weight take their meaning from Section 2 of the Motor Vehicles Act, 1988.
Two rules trip people up:
Dr. Shrawan Kumar Pathak runs a small transport firm in Kanpur. He owns three heavy goods vehicles, each with a registered gross vehicle weight of 16,000 kg (16 tons). He held all three for the full financial year 2025-26.
Step 1: Confirm the type. 16,000 kg is more than 12,000 kg, so each is a heavy goods vehicle. The Rs 1,000 per ton rate applies.
Step 2: Per vehicle, per month. 16 tons multiplied by Rs 1,000 = Rs 16,000 per truck per month.
Step 3: For 12 months. Rs 16,000 multiplied by 12 = Rs 1,92,000 per truck per year.
Step 4: For three trucks. Rs 1,92,000 multiplied by 3 = Rs 5,76,000 presumptive income for the year.
Dr. Pathak declares Rs 5,76,000 as his business income from goods transport. He does not need to maintain books of account or get a tax audit. After this figure he applies the basic exemption limit and slab rates like any taxpayer, and can still claim Chapter VI-A deductions such as Section 80C against his total income.
If even one truck had been bought partway through the year, only the months it was owned would be counted, with any part-month rounded up to a full month.
Section 44AE is open to any person, that is an individual, Hindu Undivided Family, firm or company, who:
The cap is on ownership, not usage. If you owned eleven trucks even for a single day in the year, the whole scheme is unavailable to you for that year. The ten-vehicle limit counts all goods carriages together, heavy and light.
You keep far less under Section 44AE, but you should still hold:
You are free to declare a higher income than the presumptive figure if your actual profit is more. Once you opt in:
The scheme is a flat charge, so it hurts when your real profit is low. Consider staying out and filing under normal provisions if:
If you declare income lower than the presumptive figure, Section 44AE(7) requires you to maintain books of account under Section 44AA and get them audited under Section 44AB, regardless of turnover. That audit cost is the trade-off for declaring a lower, true figure.
Truck transport income is presumptive like the freelancer and professional schemes; compare with presumptive taxation under 44AD and 44ADA if you also run a non-transport business.
If a Regional Transport Office or tax record about your vehicle weight is wrong, you can file an RTI. Draft one fast with the AI RTI Drafter, and read The RTI Playbook for the full process. The bare law is on the RTI Act, 2005 page.
Rs 1,000 per ton of gross vehicle weight per month for a heavy goods vehicle over 12,000 kg, and Rs 7,500 per month for any other goods carriage. A part of a month is counted as a full month.
Not more than ten goods carriages at any time during the year. If you own an eleventh vehicle even for one day, Section 44AE does not apply to you for that whole year.
Yes, Section 44AE itself applies to any person, including a company. But a company or LLP cannot file ITR-4 Sugam; they must report the presumptive income through the return form applicable to them, such as ITR-5 or ITR-6.
No. Once you opt into Section 44AE, no deduction under Sections 30 to 38, including depreciation, is allowed. The written down value is still reduced each year as if depreciation had been claimed.
You may declare the lower actual income, but then Section 44AE(7) requires you to keep books of account under Section 44AA and get a tax audit under Section 44AB, irrespective of turnover.
Resident individuals, HUFs and firms (other than LLP) with total income up to Rs 50 lakh file ITR-4 Sugam. Those outside this, including companies and LLPs, use the return form applicable to their status.