{"id":7650,"date":"2025-07-11T07:44:00","date_gmt":"2025-07-11T07:44:00","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/?post_type=glossary&p=7650"},"modified":"2025-07-11T07:44:01","modified_gmt":"2025-07-11T07:44:01","slug":"section-194q","status":"publish","type":"glossary","link":"https:\/\/lemonn.co.in\/blog\/glossary\/section-194q\/","title":{"rendered":"Section 194Q"},"content":{"rendered":"

Section 194Q<\/a><\/strong> is a rule in the Indian Income Tax Act<\/a> that says:<\/p>\n\n\n\n

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If a buyer buys goods worth more than ₹50 lakh from a seller in a year, the buyer must deduct TDS<\/a> (Tax<\/a> Deducted at Source) at 0.1%.<\/strong><\/p>\n<\/blockquote>\n\n\n\n

In simple words:
If you’re a business buying large amounts<\/strong>, you must cut a small tax (0.1%)<\/strong> before paying your seller and deposit that tax to the government.<\/p>\n\n\n\n

Applicability of Section 194Q<\/strong><\/h2>\n\n\n\n

✅ This section applies when:<\/p>\n\n\n\n

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  1. The buyer’s turnover<\/strong> in the previous financial year is more than ₹10 crore<\/strong><\/li>\n\n\n\n
  2. The total value of goods bought from one seller<\/strong> in the current year is more than ₹50 lakh<\/strong><\/li>\n\n\n\n
  3. The purchase is not from outside India<\/strong> (applies to Indian transactions only)<\/li>\n<\/ol>\n\n\n\n

    When to Deduct TDS under Section 194Q<\/strong><\/h2>\n\n\n\n