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TDS Section 194O Payment by e-commerce operator to participant

FY 2025-26 · Rate 0.1%

Section
194O
Rate (with PAN)
0.1%
Rate (no PAN)
5%

What does this section cover?

TDS on gross amount of sale of goods/services facilitated by e-commerce platform paid to seller (participant).

Why this section: E-commerce platforms must deduct 0.1% on gross sale amount paid to sellers — built so digital economy contributes to TDS reporting.

Note: No threshold for non-individual/HUF participants. Operator deducts even if payment goes via buyer (deemed payment). Form 26Q quarterly.

Key facts

Threshold
₹5,00,000 per FY (only for individual/HUF participants with PAN)
Applicable for
FY 2025-26
Who deducts
E-commerce operator (Amazon, Flipkart, Swiggy, Zomato, Meesho, etc.)
Paid to
Seller / service provider on the platform
Statutory source
Section 194O, Income Tax Act
Compute and file this TDS with CAhelperFree TDS computation, Form 26Q prep, challan generation — Part of KLI.

Common terms accountants use

If your description mentions any of these, Section 194O is likely the right answer. The matcher in this tool is a keyword scorer — not an AI classifier — so cross-check borderline cases against the official CBDT TDS rate chart.

amazon sellerflipkart sellerecommerce sellerswiggy partnerzomato partnerplatform tdsmarketplace tdsmeesho seller

Related TDS sections

Other sections in the same series or adjacent. Useful when narrowing down between similar payment categories.

Need a different section?

Describe the payment in plain English — “rent of plant”, “senior citizen interest”, “NRI dividend” — and the matcher will surface the right section.

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Source: curated from the CBDT TDS rate chart. Dataset snapshot: 2025-04-01. Rates can change between Finance Acts and notifications — verify before deducting.