One of my client have Truck of which RC reads as below Laden Weight - 55000 Unladen Weight - 14500 How to calculate income under section 44AE? is it Rs 55000/- per month or Rs15000/- Per Month ??

Reply- As per Section 44AE of Income Tax Act, 1961, In case of a person who is willing to opt for the presumptive taxation scheme of section 44AE, income will be computed on an estimated basis.

For Heavy Goods Vehicle, shall be an amount equal to one thousand rupees per ton of gross vehicle weight or unladen weight, as the case may be, for every month or part of a month during which the heavy goods vehicle is owned by the assessee in the previous year or an amount claimed to have been actually earned from such vehicle, whichever is higher

Other than heavy goods vehicle, shall be an amount equal to seven thousand five hundred rupees for every month or part of a month during which the goods carriage is owned by the assessee in the previous year or an amount claimed to have been actually earned from such goods carriage, whichever is higher.

“heavy goods vehicle” means any goods carriage, the gross vehicle weight of which exceeds 12000 kilograms

As per Order [F.No.225/233/2019/ITA-II] Dated 14th August,2019 in respect of a “heavy goods vehicle” i.e. all goods carriage vehicle whose gross vehicle weight exceeds 12000 kilograms, the profits and gains from each goods carriage for the purposes of section 44AE of the Act shall be at the rate of Rs. 1000/- per ton of gross vehicle weight for every month or part of the month. However in respect of a tractor or a road-roller. where the gross vehicle weight is not applicable, and unladen weight exceeds 12,000 Kilograms. the profits and gains from each goods carriage for the purposes of section 44AE of the Act shall be at the rate of Rs. 1000:- per ton of unladen weight for every month or part of the month.