Declaration for Non-Deduction of TDS on Payments for Plying, Hiring or Leasing Goods Carriages under Section 393(4), Income-tax Act, 2025

Payments made to transporters for the carriage of goods are generally subject to tax deduction at source (TDS) under the Income-tax Act, 2025. However, a specific relief is provided under Section 393(4) for persons engaged in the business of plying, hiring, or leasing of goods carriages.

As per this provision, no TDS is required to be deducted where the transporter furnishes a declaration confirming that it does not own more than the prescribed number of goods carriages during the financial year and provides its Permanent Account Number (PAN) to the payer.

This declaration is important for ensuring compliance while avoiding unnecessary tax deduction. The following format provides a practical template for use in line with the provisions of the Act.

(To be prepared on ₹200 Stamp Paper and notarized)

Declaration for Non-Deduction of TDS on Payments for Plying, Hiring or Leasing Goods Carriages under Section393(4), Income-tax Act, 2025

To,
[Name of the Payer]
[Full Address with Pin Code]

Subject: Declaration for non-deduction of tax at source on payments to transporter –Reg.

I/We, [Name of Transporter], Proprietor/Partner/Director of M/s [Firm Name], having our office at [Full Address], do hereby declare as under:

1. I/We am/are engaged in the business of plying, hiring, or leasing of goods carriages.
2. I/We hereby declare that I/We do not own more than ten (10) goods carriages at any time during the Financial Year 2026-27.
3. I/We further declare that the sums credited or paid or likely to be credited or paid to me/us during the said financial year are in respect of my/our business of plying, hiring, or leasing of goods carriages and are covered under Section 393(1), Sl. No. 6(i) of the Income-tax Act, 2025, and that I/We satisfy the conditions specified under Section 393(4)(a) of the said Act for non-deduction of tax at source.
4. My/Our Permanent Account Number (PAN) is [PAN] (copy enclosed), as required under the provisions of the Act.

5. Details of goods carriages owned by me/us during the financial year are as follows:

S. No.	Vehicle Number	Type of Vehicle
1
2
3
4
5
6
7
8
9
10

6. I/We undertake to intimate you immediately in writing in case there is any change in the above status, including if the condition of ownership of not more than ten goods carriages ceases to be satisfied.
7. I/We hereby declare that I/We am/are furnishing this declaration to enable compliance with the provisions of Section 393(4)(a)(iii) and for furnishing prescribed particulars to the income-tax authority under Section 393(4)(a)(iv) of the Income-tax Act, 2025.
8. I/We further declare that the information furnished above is true and correct to the best of my/our knowledge and belief.
9. I/We agree to indemnify you against any loss, liability, tax, interest, or penalty that may arise due to any incorrect or false information furnished in this declaration.

Place: Signature with Seal_____________________
Date: Name: _______________________________

            Designation: __________________________
                                                                                    Mobile No.: ___________________________

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