TDS Section 194Q — Purchase of goods (buyer-side TDS)
FY 2025-26 · Rate 0.1%
What does this section cover?
TDS by buyer on purchase of goods above ₹50 lakh in a FY from a resident seller — counterpart to 206C(1H) TCS.
Why this section: Large buyers (turnover > ₹10cr) must deduct 0.1% on the amount above ₹50L paid to any single resident seller in a FY.
Key facts
- Threshold
- ₹50,00,000 per FY per seller
- Applicable for
- FY 2025-26
- Who deducts
- Buyer with turnover > ₹10 crore in preceding FY
- Paid to
- Resident seller of goods
- Statutory source
- Section 194Q, Income Tax Act
Common terms accountants use
If your description mentions any of these, Section 194Q 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.
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.
Search TDS sections →Source: curated from the CBDT TDS rate chart. Dataset snapshot: 2025-04-01. Rates can change between Finance Acts and notifications — verify before deducting.