Part 44AE: Tax on Revenue of Transporters – Up to date

Part 44AE, Part 44AD & Part 44ADA cope with Presumptive Taxation of Enterprise. Part 44AE is relevant for Enterprise of plying, hiring or leasing items carriages whereas Part 44ADA is relevant for Professionals & Part 44AD is relevant for Different Companies.

The next article offers with Part 44AE solely and for Presumptive Taxation below Part 44AD, Part 44ADA kindly refer this text – Presumptive Taxation of below Part 44AD & Part 44ADA.

Provisions of Part 44AE for Transporters

A taxpayer who owns no more than 10 Items Carriage and is engaged within the enterprise of plying, hiring or leasing of Items Carriage, his revenue could be deemed as follows:-



  1. Gentle Items Automobile (Lower than 12 MT – Gross Weight Automobile) – Rs. 7,500 per automobile per thirty days
  2. Heavy Items Automobile (Greater than 12 MT – Gross Weight Automobile) – Rs. 1,000 per ton per automobile per thirty days (Funds 2018 Modification, relevant from Monetary Yr 2018-19 onwards)

Different Provisions of Part 44AE

  1. If the automobile just isn’t owned for the total month however is owned for a part of the month – then this era could be thought-about as full month.
  2. Revenue Tax Return for deemed revenue on a per automobile foundation may be filed by any class of taxpayer (i.e. Particular person/ HUF/ Partnership Agency/ LLP/ Firm and so forth)
  3. ITR 4 could be relevant for Revenue disclosed below this Part.
  4. From the deemed revenue computed below this Part, the taxpayer wouldn’t be allowed to say any expense or depreciation or every other expense.
  5. The provisions of Part 44AA and Part 44AB shall not apply for companies displaying revenue below part 44AE.
  6. The written down worth of any asset used for the aim of enterprise whose revenue is taxable in any of the presumptive schemes shall be calculated as if the taxpayer has claimed and has been truly allowed the deduction for depreciation as per the charges prescribed below the Revenue Tax Guidelines for every of the related evaluation years, for which the revenue is estimated below presumptive revenue schemes sections below Revenue Tax Act 1961.
  7. The provisions of Part 44AE are solely relevant to taxpayers who’re within the enterprise of leasing/ plying or hiring of products carriage and should not relevant to a taxpayer who has taken such automobile on lease. In different phrases, the one who has given such automobile on lease can disclose revenue below this part however an individual who has taken such automobile on lease can not disclose revenue below this part.
  8. The taxpayer could disclose revenue increased than specified below this Part. Nevertheless, in case a taxpayer discloses revenue decrease than what has been specified on this part, he could be required to adjust to the provisions of Part 44AA and Part 44AB.

Different Associated Provisions relevant on Transporters

  1. If the Transporter furnishes his PAN Card, No TDS is required to be deducted on the quantity paid to the Transporter.
  2. Below the prevailing provisions of the Revenue-tax Act, the place a taxpayer incurs any expenditure, in respect of which cost in extra of Rs 20,000 is made in any other case than by an account payee cheque or account payee financial institution draft, such expenditure just isn’t allowed as a deduction. Given the particular circumstances of transport operators for incurring expenditure on lengthy haul journeys, the restrict of cost to such transport operators in any other case than by an account payee cheque or account payee financial institution draft has been elevated to Rs 35,000/- from the prevailing restrict of Rs 20,000/-

e-Guide on Presumptive Taxation

To assist our readers perceive this Scheme of Presumptive Taxation below Part 44AE, Part 44AD & Part 44ADA, we’ve got additionally authored an e-book which explains intimately all of the provisions relevant in such circumstances. The ideas have been defined intimately together with Summaries, Charts and seven Illustrations.

The e-book may be bought for Rs. 97 solely from this hyperlink – e-Guide on Presumptive Taxation for Transporters, Companies and Professionals

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