Format of Declaration for Non-Deduction of TDS on Payments for Plying, Hiring or Leasing Goods Carriages under Section 393(4), Income-tax Act, 2025
The document is a formal declaration to be executed on Rs. 200 stamp paper and notarized for claiming non-deduction of Tax Deducted at Source (TDS) on payments made to transporters under Section 393(4) of the Income-tax Act, 2025. It requires the transporter to confirm engagement in the business of plying, hiring, or leasing goods carriages and to declare that they do not own more than ten goods vehicles during the relevant financial year. The declaration must include PAN details, a list of owned vehicles, and confirmation that payments received fall within the specified exemption provisions. The transporter also undertakes to notify any change in eligibility conditions and affirms the accuracy of information provided. Additionally, an indemnity clause protects the payer from liabilities arising due to false declarations. This declaration enables the payer to comply with statutory requirements and avoid TDS deduction where conditions are satisfied.
(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 Section 393(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 |
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:
Seal_____________________
Date:_______________________________
Signature with
Name:
Designation: __________________________
Mobile No.: ___________________________
******
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Whether Income Tax Authority have notified any prescribed form to be submitted by the Transporter, (please provide the Form No) and also provide the Income Tax Rule for notarisation of the declaration of the Form to be furnished by the transporter.
Thanks for your valuable comment Sir.
As of now, no specific new form has been notified under the Income-tax Act, 2025 for this purpose, and compliance is reflected through reporting by the payer in the quarterly TDS return.
The declaration is valid if it satisfies the prescribed conditions, particularly the furnishing of PAN and confirmation of eligibility.
There is no requirement under the Act or Rules for notarisation of such declaration; however, it may be obtained as an additional precautionary measure for evidentiary support, without affecting the legal validity of the declaration under tax law.
Kindly consult qualified professionals before taking any action in this regard Sir.
Not more than 10 goods vehicle/ carriage. That means upto 10 is eligible for declaration. That also means once goods vehicle/ carriage exceeds 10 then the same stands in-eligibke for exemption. Right?
Thanks for your Comment.
Under the Income Tax Act 2025, the “No TDS on Transport Payments” provision allows exemption only for payments made to transporters for goods carriage up to 10 vehicles.
1. Threshold:
If a transporter owns 10 or fewer goods vehicles, payments made to them can be declared for TDS exemption.
“Not more than 10” literally means 10 is included, so 10 or fewer is eligible.
2. Exceeding the limit:
If the transporter has more than 10 goods vehicles, i.e., 11 or more, then the exemption does not apply, and TDS must be deducted on payments to them.
Kindly consult qualified professionals before taking any action in this regard Sir.