TaxTMI 
TaxTMI 
Whether I can pay hire-charges towards vehicle rent to my spouse, who has car in her name? Whether TDS needs to be deucted towards such payment? If yes at what percent?
Hire charges towards vehicle rent to spouse - Tds applicability
30 Dec 2009 
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TDS on vehicle hire to spouse requires deduction at prescribed rates when payments are for genuine business use.
Payments characterized as vehicle hire to a spouse are subject to tax deduction at source. The applicable TDS rate changed with effect from 01.10.2009; prior to that change a higher withholding rate applied where aggregate annual hire payments exceeded the statutory threshold. The payer must deduct TDS at the prescribed rate applicable to hire of movable property when making such payments to a spouse. (AI Summary)
Payments characterized as vehicle hire to a spouse are subject to tax deduction at source. The applicable TDS rate changed with effect from 01.10.2009; prior to that change a higher withholding rate applied where aggregate annual hire payments exceeded the statutory threshold. The payer must deduct TDS at the prescribed rate applicable to hire of movable property when making such payments to a spouse. (AI Summary)