Clarification regarding deduction of tax from payments made to transporters

[Admin TMI]

Question - What are proposed amendment in section 194C of the Income tax Act in Finance Bill 2015 ?

AI Summary

Proposed Amendment to Section 194C: TDS Exemption Limited to Small Transport Operators with Up to 10 Goods Carriages. A forum discussion addressed the proposed amendments to section 194C of the Income Tax Act in the Finance Bill 2015 regarding tax deduction at source (TDS) for payments to transporters. Currently, TDS is applicable at 1% for individuals or Hindu undivided families and 2% for others if payments exceed certain thresholds. Previously, small transport operators with fewer than two goods carriages were exempt from TDS upon providing their PAN. However, all transporters are claiming this exemption. The amendment aims to limit this exemption to small transport operators with up to 10 goods carriages, effective from June 1, 2015.