Understanding 194Q Tax: A Guide to TDS on High-Value Purchases

Learn about 194Q tax in India and its implications for businesses. Understand TDS requirements on purchases exceeding ₹50 lakhs.

82 views

194Q tax refers to the provision in the Indian Income Tax Act requiring buyers to deduct tax at source (TDS) at 0.1% on purchases of goods exceeding ₹50 lakhs in a financial year, effective from July 1, 2021.

FAQs & Answers

  1. What does 194Q tax mean? 194Q tax is a provision in the Indian Income Tax Act that mandates buyers to deduct tax at source (TDS) at a rate of 0.1% on purchases of goods exceeding ₹50 lakhs in a financial year.
  2. When did the 194Q tax come into effect? The 194Q tax provision became effective from July 1, 2021.
  3. Who is liable to deduct TDS under section 194Q? Buyers who purchase goods worth more than ₹50 lakhs in a financial year are required to deduct TDS under section 194Q.
  4. How much TDS is deducted under section 194Q? Under section 194Q, the TDS rate for applicable purchases is set at 0.1% of the total purchase amount exceeding ₹50 lakhs.

Watch More

For more insights into the Indian tax system, including detailed explanations of TDS regulations and updates on compliance, be sure to explore our related content. Understanding these aspects can help you navigate your tax responsibilities effectively and ensure you stay informed about any changes that may affect your financial decisions.

  1. Understanding US 194 Income Tax: What You Need to Know Learn about the US 194 income tax for non-residents in India, including tax rates, deductions, and consulting advice.
  2. Understanding Section 194S of Income Tax: TDS on Virtual Digital Assets Explained Learn about Section 194S, TDS on virtual digital assets in income tax, and how it impacts transactions.
  3. Understanding Section 194A of Indian Income Tax: TDS on Interest Explained Learn about Section 194A of the Indian Income Tax Act and its implications on TDS for interest payments.
  4. Understanding Section 194 B: Tax on Lottery Winnings in India Learn about Section 194 B of the Income Tax Act and how it applies to lottery and gaming winnings in India.
  5. Understanding the Differences Between Section 194-I and 194IB in India Learn the key differences between TDS under Section 194-I and 194IB for rent payments in India.
  6. Understanding Section 194H: Income Tax on Commission and Brokerage Learn about Section 194H and its implications for TDS on commission payments in India.
  7. Understanding Income Tax Rule 194 N: TDS on Cash Withdrawals Explained Learn about Income Tax Rule 194 N, its TDS rates on cash withdrawals, and how it impacts digital payments.
  8. Understanding Section 193 of the Income Tax Act: TDS on Interest Learn about Section 193 of the Income Tax Act and its implications for TDS on interest payments. Essential for tax compliance.
  9. Understanding Section 194A of the Income Tax Act: TDS on Interest Explained Explore Section 194A of the Income Tax Act concerning TDS on interest payments, essential for tax compliance.
  10. Understanding Section 194A of the Income Tax Act: Key Changes Explained Learn about Section 194A of the Income Tax Act and its recent amendments affecting TDS on interest payments.
  11. Understanding Exemptions Under Section 194A of the Income Tax Act Learn about the exemptions for TDS on interest income under Section 194A, including details on eligible entities and forms.
  12. Difference Between Section 192 and 194A: Tax Deduction Explained Discover the key differences between Section 192 and 194A for TDS on salary and interest payments.
  13. What is the Allowed TDS Rate in India? Learn about the TDS rates permitted under Indian Tax Law and the importance of consulting a professional for accuracy.
  14. Understanding TDS Exemption Limits: Key Insights Discover the current TDS exemption limits and essential information for taxpayers in India.
  15. Understanding Section 44AD: Simplified Income Tax for Small Businesses in India Discover how Section 44AD simplifies income tax for small businesses in India with a presumptive taxation scheme.
  16. Understanding Section 194BA: Tax on Online Gaming Winnings Learn about Section 194BA and how it affects tax deductibility for online gaming winnings.