TDS on Transporters: Declaration Format Under Section 393(4) for AY 2026-27

Overview

This article explains the format and purpose of a declaration required for non-deduction of TDS on transporter payments under Section 393(4) of the Income-tax Act, 2025.

It outlines how transporters engaged in the business of plying, hiring, or leasing goods carriages can submit a formal declaration to the payer stating that they do not own more than ten goods vehicles during the relevant financial year. By fulfilling this condition and providing a valid PAN, transporters can avail exemption from TDS on such payments.

The article provides a ready-to-use declaration format, covering key elements such as transporter details, eligibility conditions, vehicle ownership disclosure, and an undertaking for compliance. It also highlights the requirement of executing the declaration on ₹200 stamp paper and notarization to ensure legal validity.

Additionally, the write-up emphasizes the importance of accuracy, timely intimation of changes, and indemnification clauses to safeguard the payer from potential tax liabilities. This serves as a practical compliance guide for both transporters and businesses making freight payments under the updated provisions of the Income-tax Act, 2025.

(To be prepared on Rs 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:

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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