Presumptive Tax for Goods Carriages (Section 58)
Also searched as: 44AE · presumptive taxation truck · section 58 presumptive transport · truck owner income tax
Presumptive taxation lets an owner of up to ten goods carriages declare a fixed income per vehicle instead of keeping detailed books. Under section 58(2) of the Income-tax Act, 2025, the deemed income is ₹1,000 per ton of gross vehicle weight per month for a heavy goods vehicle, or ₹7,500 per month for another goods carriage, or actual profit if higher.
Detailed Explanation & Statutory Rules
A heavy goods vehicle here means one with gross vehicle weight over 12,000 kg. The scheme is available to an owner of at most ten goods carriages and is meant for truck owners who carry goods themselves; it does not apply to income from commission, brokerage or agency, so a broker's earnings are outside it. Until 31 March 2026 the same scheme was section 44AE of the Income-tax Act, 1961. Opting in saves maintaining detailed accounts for the business income, but you should still keep your trip and payment records, because the actual profit applies if it is higher, and tax audit and advance tax rules interact with it. Whether it suits you depends on your actual profit, so decide with your CA. This is general information, not tax advice.
Practical Indian Freight Example
"For illustration: an owner has one truck with a GVW of 25 tons (a heavy goods vehicle) and one 7-ton pickup. Deemed income under the scheme is 25 × ₹1,000 = ₹25,000 per month for the heavy truck and ₹7,500 per month for the pickup, which is ₹32,500 a month, unless the owner's actual profit is higher. A broker's commission is not covered."
Key Questions & Answers
Who can opt for presumptive tax on trucks?
An owner of at most ten goods carriages. It does not apply to commission, brokerage or agency income.
What was this scheme called before 1 April 2026?
Section 44AE of the Income-tax Act, 1961. It is now section 58(2), Table item 2, of the Income-tax Act, 2025.
Presumptive Tax for Goods Carriages in Hinglish (Hindi in English letters)
Truck owner ke liye presumptive tax kya hai?
Agar 10 ya kam goods carriage hain to har gaadi ki fixed income maan kar tax lagta hai: heavy vehicle par ₹1,000 per ton GVW per month, baaki par ₹7,500 per month, ya actual profit zyada ho to wo.
Kya broker ko ye mil sakta hai?
Nahi, commission ya brokerage income is scheme me nahi aati.
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