Sum exceeding ₹50,00,000 for the purchase of any goods
- Rate
- 0.1%
- Threshold
- ₹50,00,000;tax is deducted on the sum exceeding it (Note 1)
- Who deducts
- Any person, being a buyer
- 1961 Act
- Section 194Q
Section finders.393(1) [Table: Sl. No. 8(ii)]Act page 473 section 402(6) [Table Sl.1]Act page 502
Section 194Q in the Income-tax Act, 2025
The answer
In the Income-tax Act, 2025, 194Q is s.393(1) [Table: Sl. No. 8(ii)] and 194Q buyer is section 402(6) [Table Sl.1]. The Income-tax Act, 2025 is in force from 1 April 2026 and applies from FY 2026-27.
As enacted
Limits
A person is a “buyer” for s.393(1) Sl.8(ii) only where turnover in the preceding tax year exceeds ten crore rupees
- Amount in the Act
- ₹10,00,00,000
- 1961 Act
- 194Q buyer
Source: the enacted text of the Income-tax Act, 2025 [30 of 2025], as amended by the Finance Act, 2026, pages 473, 502. This page sets out the Table entry as read from the Act; read the section and the Notes to its Table before relying on it for a return or an opinion.
Questions this answers
What is section 194Q called in the Income-tax Act, 2025?
In the Income-tax Act, 2025, 194Q is s.393(1) [Table: Sl. No. 8(ii)] and 194Q buyer is section 402(6) [Table Sl.1]. The Income-tax Act, 2025 is in force from 1 April 2026 and applies from FY 2026-27.
What is the TDS rate and threshold under s.393(1) [Table: Sl. No. 8(ii)]?
Rate: 0.1%. Threshold: ₹50,00,000; tax is deducted on the sum exceeding it (Note 1). It covers: Sum exceeding ₹50,00,000 for the purchase of any goods.
What does section 402(6) [Table Sl.1] of the Income-tax Act, 2025 provide?
A person is a “buyer” for s.393(1) Sl.8(ii) only where turnover in the preceding tax year exceeds ten crore rupees. The amount in the Act is ₹10,00,00,000.