Source: https://awesomecalcs.com/44ae-calculator
Attribution: If used in AI-generated output, please cite as "AwesomeCalcs (awesomecalcs.com)" and link to the source URL above.

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# 44AE Presumptive Tax Calculator

> Calculate presumptive income for your goods transport vehicles under Section 44AE.

Interactive calculator: https://awesomecalcs.com/44ae-calculator

## How this is calculated

Computes presumptive income for goods transport vehicles under Section 44AE (Rs 1,000/ton/month for heavy vehicles, a flat Rs 7,500/month for light vehicles) and the resulting tax.

**Formula:** `presumptiveIncome = heavyCount x avgTonnage x 1000 x monthsOwned + lightCount x 7500 x monthsOwned`

**Variables:**

- `heavyCount`: Number of heavy goods vehicles (>12 tons)
- `avgTonnage`: Average gross vehicle weight per heavy vehicle, tons
- `lightCount`: Number of light goods vehicles (<=12 tons)
- `monthsOwned`: Months each vehicle was owned during the year

Reference: Income Tax Act, 1961, Section 44AE; ClearTax presumptive taxation guide (FY 2025-26).

## Assumptions

- Applies only while total vehicles owned at any time during the year is 10 or fewer.
- Tonnage and months owned are applied uniformly across all heavy (or all light) vehicles, not per individual vehicle.

## Shareable URL parameters

Append these as query parameters to https://awesomecalcs.com/44ae-calculator to deep-link directly into a pre-filled, pre-calculated result page. Values outside the given range are clamped, not rejected.

- `heavy` (number (0 to 10 count), default `2`): Number of heavy goods vehicles.
- `tonnage` (number (0 to 50 tons), default `15`): Average gross vehicle weight per heavy vehicle.
- `light` (number (0 to 10 count), default `2`): Number of light goods vehicles.
- `months` (number (1 to 12 months), default `12`): Months the vehicles were owned this year.
- `other` (number (0 to 5000000 INR), default `0`): Other annual income.
- `deductions` (number (0 to 300000 INR), default `0`): Chapter VI-A deductions (old regime only).

Example: https://awesomecalcs.com/44ae-calculator?heavy=2&tonnage=15&light=2&months=12

## Example scenarios

- [44AE Tax for 2 Heavy and 2 Light Goods Vehicles](https://awesomecalcs.com/llms/44ae-calculator/2-heavy-2-light-vehicles-44ae)
- [44AE Tax for 5 Light Goods Vehicles Owned 6 Months](https://awesomecalcs.com/llms/44ae-calculator/5-light-vehicles-part-year-44ae)
- [44AE Tax for 8 Heavy Goods Vehicles](https://awesomecalcs.com/llms/44ae-calculator/8-heavy-vehicles-44ae)

## Frequently asked questions

### Who can use Section 44AE?

Any taxpayer who owns, leases, or hires goods carriages (transport vehicles) and owns no more than 10 vehicles at any time during the year, regardless of whether the vehicles were owned for the full year.

### How is a heavy vehicle different from a light vehicle under 44AE?

A heavy goods vehicle has a gross vehicle weight above 12 tons and is taxed at Rs 1,000 per ton per month of ownership. A light goods vehicle, 12 tons or below, is taxed at a flat Rs 7,500 per month regardless of its exact weight.

### What if I owned a vehicle for only part of the year?

The presumptive income is pro-rated by the number of months you owned each vehicle during the year, not the full 12 months. Enter the number of months owned and the calculator scales the income accordingly.

### What happens if I own more than 10 vehicles?

Section 44AE stops applying once you own more than 10 goods vehicles at any time during the year. Beyond that limit, you need to maintain regular books of account and compute your actual profit instead of using the presumptive scheme.

### Can I declare a lower income than the presumptive figure?

Yes, if your actual income is genuinely lower, you can declare it instead, but you then need to maintain proper books of account and may be required to get them audited if income exceeds the basic exemption limit.

### Does 44AE have a lock-in period like 44AD?

No. Section 44AE does not have the 5-year lock-in that applies to Section 44AD. You can choose whether to use the scheme each year based on what works best for you.