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Presumptive Income under Section 44AE Calculator

What is Section 44AE of The Income Tax Act, 1961?

The Income-tax Act has created the presumptive taxation plan under sections 44AD, 44ADA, and 44AE to relieve small taxpayers of the onerous task of maintaining books of account and having the accounts audited. Section 44AE of the Income Tax Act of 1961 is a small and medium enterprise income programme created by the Income Tax Department. The goal is to simplify tax compliances, relieve the burden of maintaining books of accounts, and give a common income calculation technique. Assessees who choose this presumptive taxation plan are not required to keep books of accounts or have them audited.

How is Presumptive Income Computed under Section 44AE?

The income under section 44AE will be the composition of the earnings and gains from all of the assessee's goods carriages in the preceding year. There are two types of goods carriage vehicles: heavy goods vehicles and or light goods trucks. Profits and gains from each shipment of products shall be computed in accordance with the following conditions:

1. Heavy goods vehicles

A sum equivalent to Rs 1000 per tonne of gross vehicle weight or unladen weight for each month or part of a month in the preceding year when the assessee possessed the heavy goods vehicle.


The amount claimed by the assessee from such heavy goods truck during the fiscal year

2. Other than heavy goods vehicles

A payment of Rs 7500 for each month or part of a month in which the assessee owned the carriage of the goods in the previous year, or the amount the assessee claims to have earned from such heavy goods vehicles during the fiscal year. Even if the assessee has taken such cars on rental or in installments, the assessee would be viewed as having purchased them.

Benefits of Using Presumptive Income Under Section 44AE Calculator

If you're looking for a big break from the paperwork that comes with calculating income tax after availing all the deductions and exemptions then this calculator can help you greatly. All you need to do is enter your details, and this calculator will help you calculate the presumptive income under section 44AE.

Eligibility Criteria for Using Presumptive Income Under Section 44AE Calculator

The Presumptive Taxation Scheme applies to businesses that hire, transport, or lease goods transportation vehicles. As a result, there are just two key eligibility criteria:

  • As it applies to the hiring, plying, and leasing of goods conveyance, if an assessee is in the business of selling passenger automobiles or providing passenger transportation, he or she cannot participate in such a programme.
  • In addition, it applies to businesses having a maximum of 10 goods carrier trucks. It follows that an assessee who owns more than 10 such cars cannot participate in such a plan.



Is Tax2win Presumptive Income Under Section 44E calculator safe?

Yes, it is totally safe to use Presumptive Income Under Section 44E Calculator of Tax2win.


Can an assessee covered by section 44AE declaration higher income as compared to income specified in section 44AE?

If the assessee does this, i.e. discloses a lesser income, the exemption from maintenance of accounts is not available, and he is required to keep books of account in accordance with section 44AA and to have such books of account audited in accordance with section 44AB.

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