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ArticleCab and taxi drivers — whether on Ola/Uber or independent — earn business income with real vehicle and fuel costs, often after platform deductions. Here's how drivers can save tax and stay compliant.
Reviewed by CA Harika Chebolu, FCA · Last updated 2026-06-13
Quick answer
App-based and self-employed drivers earn business income — so presumptive schemes, vehicle depreciation and expense claims, and advance tax are the levers. Here's how.
If you own up to 10 vehicles, the 44AE scheme declares a fixed income per vehicle per month with no audit. Otherwise the 44AD scheme (8% of turnover, or 6% on digital receipts, within Rs 2 crore) can apply to a driving business. Both skip detailed books — we'll confirm which fits your situation.
If you keep books, deduct depreciation on your vehicle, plus fuel, maintenance, insurance, financing interest, platform commissions and mobile/data costs. For a financed vehicle with heavy running, actual expenses can save more than presumptive.
Aggregators provide earnings statements and may deduct amounts that appear in your records; reconcile these and report your actual net income. Keeping platform statements makes filing accurate and avoids mismatches.
On your personal return, use 80C up to Rs 1,50,000, the Rs 50,000 NPS and 80D health insurance in the old regime. Even modest contributions reduce tax and build savings.
With no employer TDS, pay advance tax in the four instalments if your tax for the year exceeds Rs 10,000, to avoid 234B/234C interest. For most single-vehicle drivers the tax is small once expenses are claimed.
Yes — driving income is business income, taxed at your slab after expenses. Many single-vehicle drivers owe little once fuel, maintenance and depreciation are claimed, but the income must still be reported.
Yes, when you keep books — depreciation on the vehicle, fuel, maintenance, insurance, financing interest and platform commissions are deductible. These often reduce a financed driver's taxable income sharply.
44AE if you own up to 10 vehicles, or 44AD (8%/6% of turnover) for a driving business — both skip detailed books. We'll confirm which fits your situation.
Driving for a platform or running your own cab? Write to the firm and we'll set up the simplest compliant way to file.