TDS rate.

[Rajiv Soni]

Hiring of Taxi falls under 194I or 194C. What should be the TDS rate.

AI Summary

Determining TDS Rate for Taxi Hire: Section 194C Applies, Not 194I or 194J, Without Possession Transfer A query was raised regarding the applicable Tax Deducted at Source (TDS) rate for hiring a taxi, questioning whether it falls under Section 194I or 194C of the Income Tax Act. The response clarified that hiring a taxi typically falls under Section 194C, which pertains to contracts. Section 194J would apply only if the car is leased, granting possession and control to the hirer during the contract period. Simple hiring does not provide such possession, thus falling under Section 194C.