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CA Intermediate · Taxation · Profits and Gains of Business or Profession

Ravi Transport, a proprietary concern, owns three goods carriages and opts for the presumptive scheme for goods carriages for tax year 2026-27. Two vehicles are light goods vehicles owned for the whole year. The third is a heavy goods vehicle with gross vehicle weight of 16 tons, bought and put to use on 1 October 2026. Under the scheme, income per vehicle is deemed at Rs 7,500 per month for a vehicle that is not a heavy goods vehicle, and Rs 1,000 per ton of gross vehicle weight per month for a heavy goods vehicle. What is the presumptive business income?

The presumptive income is Rs 2,76,000. The two light vehicles give 7,500 x 12 x 2 = Rs 1,80,000. The heavy vehicle is taxed at Rs 1,000 per ton per month for the 6 months owned, so 16 x 1,000 x 6 = Rs 96,000. The two amounts add up to Rs 2,76,000.

  1. ARs 2,25,000
  2. BRs 2,76,000Correct
  3. CRs 3,72,000
  4. DRs 1,86,000

Explanation

Two light vehicles: 2 x 7,500 x 12 = 1,80,000. Heavy vehicle: 16 tons x 1,000 x 6 months (October to March) = 96,000. Total = 2,76,000. Using Rs 7,500 for the heavy vehicle gives 2,25,000, and counting 12 months for it gives 3,72,000, and both are wrong.

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