31 December 2015
Hi, this is Siddharth. I have a query in relation to TDS charged U/s 194C, recent amendment dated 01.06.2015.
As per the said notification, "The provisions of Section 194C(6) of the Income Tax Act,1961 has been amended so as to expressly provide that the relaxation under sub-section (6) of section 194C of the Income Tax Act for non-deduction of tax shall only be applicable to the payment in the nature of transport charges made to a contractor who is engaged in the business of transport, i.e., plying, hiring or leasing goodds carriages and who is eligible to compute income as per the provisions of Section 44AE of the Act (i.e., a person who is not owning more than 10 goods carriages at any time during the previous year) and who has also furnished a declaration to this effect along with his PAN to the person paying such sum."
Referring and concluding from the above stated provision, a person if is eligible to compute his income under Section 44AE & owning 10 or less vehicles during any previous year and furnished a declaration stating the same alongwith his PAN copy, then the deductor will not deduct the TDS and the person will enjoy the exemption.
I have the query that, if the person owned 8 vehicles during the previous year and is eligible for Presumptive Taxation Scheme under section 44AE, but he has filed his income as per normal provisions of Income Tax, then in that case, will TDS exemption will be granted to him or not?
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