An individual, HUF, firm, company are eligible to pay tax under presumptive scheme satisfying the conditions under this section.

The presumptive taxation scheme of section 44AE can be adopted by a person who is engaged in the business of plying, hiring or leasing of goods carriages and who does not own more than 10 goods vehicles at any time during the year.

As an amendment to this section from the FY 2018-19, taxable income under this section shall be calculated as follows.

For light goods vehicle (less than or equal to gross weight of 12MT) – 7,500 per vehicle per month or part of month
For heavy goods vehicle (more than gross weight of 12MT) – 1,000 per tonne per vehicle per month or part of month