The trucking industry has sought waiver of presumptive tax for small fleet owners for four years beginning 2019-20 as the industry reels under lockdown due to coronavirus outbreak.
All India Transporters' Welfare Association (AITWA), an association of truck owners, has urged the Finance Ministry to consider the waiver of presumptive taxation under Section 44AE of the Income Tax Act on truck owners for 2019-20, and for next 3 years, as it believes that small truck owners will get wiped out paying EMIs without any business.
Under Section 44AE of Income Tax Act, small businesses engaged in plying, hiring or leasing goods carriages with not more than 10 goods carriage vehicles, can opt for presumptive taxation scheme for ascertaining the taxable income for a particular financial year.
Trucking industry has been hit hardest with movement of trucks grounded to halt due to the lockdown which began on March 25. The impact on the sector can be assessed by the fact that e-way bills generated in April dropped to 67 lakh from over 4 crore in March 2020.
Even in March, when the lockdown began, the number of e-way bills generated (4 crore) was almost a quarter lower than the average of 5.35 crore in the trailing 12-month period.
The average daily generation of e-way bills fell from 13.10 lakh in March 2020 to 2.87 lakh in April 2020. Last year in April, the average daily e-way bill generation was 17.50 lakh.