Section 194Q → Section 226
TDS on purchase of goods
Quick Answer
Section 194Q of the Income Tax Act, 1961 (TDS on purchase of goods) corresponds to Section 226 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
Sec 194Q
Provision Summary
TDS @ 0.1% by the buyer on purchase of goods exceeding Rs. 50 Lakhs if the buyer's turnover is > Rs. 10 Crores.
Sec 226
Provision Summary
Retained. Acts as a mirror to TCS under 206C(1H). If TDS is deducted under 194Q, TCS is not applicable.
Key Changes & Highlights
- Cross-verification logic between 194Q (TDS) and 206C(1H) (TCS) fully automated in the portal.
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Frequently Asked Questions
What does Section 194Q of the Income Tax Act 1961 deal with?
Section 194Q (TDS on purchase of goods) TDS @ 0.1% by the buyer on purchase of goods exceeding Rs. 50 Lakhs if the buyer's turnover is > Rs. 10 Crores.
What is the new section number for Section 194Q under the Direct Tax Code 2025?
Section 194Q of the ITA 1961 maps to Section 226 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 194Q under the new tax code?
Section 194Q is marked as "Retained" with status "Active". Impact: Critical - Governs the B2B supply chain and large-scale trading.
What are the key changes to Section 194Q under DTC 2025?
Cross-verification logic between 194Q (TDS) and 206C(1H) (TCS) fully automated in the portal.
Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.
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