Section 44AB(c) applies to a person in a business covered by section 44AE, 44BB or 44BBB who claims profit lower than the deemed profit under that section. Turnover does not decide it. The claim of lower profit does.
Facts checked: 9 October 2026, for FY 2025-26 / AY 2026-27 under the Income-tax Act, 1961. For ordinary business turnover, see 44AB(a).
The three special business provisions
| Section | Business | Deemed profit basis |
|---|---|---|
| 44AE | Plying, hiring or leasing goods carriages (up to ten vehicles) | A fixed amount per vehicle per month, depending on vehicle type |
| 44BB | Providing services or facilities in connection with prospecting or extracting mineral oils | A percentage of specified amounts paid or received |
| 44BBB | Civil construction and similar activity by foreign companies for certain turnkey power projects | A percentage of the specified amount |
Check the current rate and conditions in the Act for each. Do not rely on an older figure from a previous year's file.
How the trigger works
A person in one of these businesses can follow the presumptive rule and declare at least the deemed profit. No audit under 44AB(c) is then needed. If the person instead claims a lower profit, the books must be kept and the accounts audited.
Worked example
A transporter owns four goods vehicles for the whole year. The deemed income under 44AE comes to a fixed sum per vehicle for each month, so the total for the year is the sum across all four. The accounts show an actual profit of less than that total, and the transporter wants to report the lower actual profit.
The lower claim triggers 44AB(c). The transporter needs audited accounts even though turnover may be far below ₹1 crore. If the transporter declares the full deemed amount, no audit arises under this clause.
Points to check
- Vehicle count. 44AE is limited to a person who does not own more than ten goods carriages at any time during the year.
- Which business. A transporter with a separate trading business must test that business on its own under 44AB(a).
- Records. A person claiming lower profit must maintain books under section 44AA and have them audited.
Record the conclusion in Form 3CD Clause 8 as 44AB(c) and keep the deemed-profit computation in the working papers. See which 44AB clause applies. The AY 2026-27 report date is 21 October 2026; read the due date note.
Frequently asked questions
Does a transporter with turnover below ₹1 crore need an audit?
Only if the transporter claims profit below the 44AE deemed amount. Declaring the deemed amount or more avoids 44AB(c).
Is 44AB(c) the same as 44AB(e)?
No. Clause (c) covers 44AE, 44BB and 44BBB. Clause (e) covers a person who exits the 44AD scheme. See 44AB(e).
What if the transporter has no books?
A lower-profit claim cannot be supported without books. Maintain them before the year ends.
Read the complete guide to section 44AB.
Statutory facts on this page are checked against their sources, and the page says where it relied on secondary reporting. How we verify · Report an error