Fixed Income, Complex Issues: Live Webinar on Presumptive Taxation for Transporters under Section 44AE

DAY – 1

What is Section 44AE? Overview & Applicability

• Purpose of introducing 44AE
• Who can opt for it?
• Limit of up to 10 goods carriages
• Types of vehicles: heavy vs others

Presumptive Income Norms &Computation

• ₹1,000/month (before AY 2019-20)
• ₹7,500/month per vehicle (from AY 2019-20)
• Per month or part thereof
• Gross income vs presumptive income – Tax computation

Benefits & Intent of 44AE

• Simplified taxation for small transporters
• No requirement to maintain books
• Relief from audit under Section 44AB
• Useful for unorganized logistics sector

The Grey Areas & Common Misuse

• Mismatch with AIS/Form 26AS/GST turnover
• Undisclosed actual freight income
• Non-disclosure of owned vs hired trucks
• Overstatement of deduction claims despite opting 44AE

Judicial Rulings & Tax Officer Interpretations

• Key ITAT/HC decisions
• Disallowance of deductions once presumptive opted
• Cases of opting in and out to suit tax positions

Strategic Considerations – When NOT to Opt for 44AE

• When actual income is lower due to loss
• In case of hired trucks or lease structure
• When vehicle usage is part-time