An OTP will be sent to this number for verification
You may have a pre-approved offer
Enter required home loan amount
In summary
Understanding Home Loan
Section 194Q was introduced to track high-value goods transactions and improve tax compliance. The Budget 2025 maintained the existing framework without major changes — the Rs. 10 crore turnover threshold and 0.1% TDS rate remain unchanged.
This page covers:
- Budget 2025 update on Section 194Q
- Eligibility criteria — buyer's turnover, purchase value, and seller status
- Who deducts TDS — worked example
- TDS rate — 0.1% with PAN, 5% without PAN
- How to calculate TDS — formula and worked example
- When TDS must be deducted — time of deduction rules
- TDS deposit due date and Form 26Q filing
- Exceptions — imports, 206C(1H), other TDS sections, non-residents
- Impact of GST on TDS calculation
- Section 194Q declaration format
- Key points and non-furnishing of PAN
Show more
Show less
What is Section 194Q of the Income Tax Act?
Section 194Q of the Income Tax Act mandates Tax Deducted at Source (TDS) on the purchase of goods above Rs. 50 lakh from resident sellers. The obligation falls on the buyer — specifically, any buyer whose total sales, gross receipts, or turnover exceeded Rs. 10 crore in the immediately preceding financial year. Introduced in the Finance Act 2021 and effective from 1 July 2021, the provision aims to track high-value goods transactions and reduce tax evasion through a TDS audit trail.
Show more
Show less
Budget 2025 update on Section 194Q
The Budget 2025 maintained the existing framework of Section 194Q without major changes. The Rs. 10 crore turnover threshold for buyers and the Rs. 50 lakh purchase threshold per seller remain unchanged. The TDS rate also stays at 0.1%, providing stability for businesses in their tax planning.
Show more
Show less
What are the eligibility criteria for Section 194Q?
Section 194Q applies when all three conditions are met simultaneously:
- Buyer's turnover: The buyer's total sales, gross receipts, or turnover exceeded Rs. 10 crore in the immediately preceding financial year
- Purchase value: The aggregate purchases from a single seller exceed Rs. 50 lakh during the current financial year
- Seller status: The seller is a resident of India — the provision does not apply to imports or purchases from non-resident sellers
The provision applies strictly to the purchase of goods — not services. Once the Rs. 50 lakh threshold is crossed for a seller, TDS at 0.1% applies on every subsequent purchase from that seller for the rest of the financial year.
Show more
Show less
Who is responsible for deducting TDS under Section 194Q?
The buyer deducts TDS. Here is a worked example:
Company ABC had turnover of Rs. 15 crore in FY 2023-24. In FY 2024-25, they purchase raw materials worth Rs. 75 lakh from XYZ Traders. Since ABC's turnover exceeds Rs. 10 crore and purchases exceed Rs. 50 lakh, ABC (the buyer) must deduct TDS under Section 194Q.
TDS applies only to the amount exceeding Rs. 50 lakh. In this case: Rs. 75 lakh − Rs. 50 lakh = Rs. 25 lakh is the taxable amount. TDS at 0.1% = Rs. 2,500.
Show more
Show less
Home loan for professionals
What is the TDS rate under Section 194Q?
| Scenario | TDS rate |
|---|---|
| Seller provides valid PAN | 0.1% on the purchase value exceeding Rs. 50 lakh |
| Seller fails to furnish PAN | 5% (as per Section 206AA) — a five-fold increase |
Verifying seller PAN details before making payments is essential to avoid the higher 5% rate. Best practice: collect and verify PAN for all vendors at the onboarding stage.
Show more
Show less
How is TDS calculated under Section 194Q?
Formula: TDS Amount = (Total Purchase Value − Rs. 50 lakh) × 0.1%
Note: The Rs. 50 lakh threshold applies to aggregate purchases from a specific seller during the financial year — not to individual transactions. GST paid on purchases is included in the base for TDS calculation.
Worked example
A manufacturing company purchases raw materials worth Rs. 90 lakh from a supplier in FY 2024-25. Their previous year turnover was Rs. 12 crore.
- Amount exceeding threshold: Rs. 90 lakh − Rs. 50 lakh = Rs. 40 lakh
- TDS at 0.1%: Rs. 40 lakh × 0.1% = Rs. 4,000
The buyer deducts Rs. 4,000 from the payment to the seller and deposits it with the government. This amount appears in the seller's Form 26AS and can be claimed as a tax credit.
Show more
Show less
When must TDS be deducted under Section 194Q?
TDS must be deducted at the earlier of:
- The time of credit of the purchase amount to the seller's account
- The time of actual payment to the seller
For accrual basis accounting: TDS applies when the purchase is booked as an expense, even if payment is pending. For cash basis: TDS applies when actual payment is made. Tax authorities strictly monitor compliance with these timing rules.
Show more
Show less
When must TDS be deposited?
TDS deducted must be deposited with the government by the 7th day of the month following the deduction month. For March (last month of the financial year), the deadline is extended to 30 April.
Late deposit attracts interest at 1.5% per month under Section 201(1A). Electronic payment via the NSDL TIN platform is mandatory for most businesses using challan ITNS 281 with Section 194Q mentioned.
What are the Form 26Q filing deadlines?
TDS deducted under Section 194Q must be reported in quarterly TDS return Form 26Q:
| Quarter ending | Filing deadline |
|---|---|
| June | 31 July |
| September | 31 October |
| December | 31 January |
| March | 31 May |
Late filing attracts a penalty of Rs. 200 per day under Section 234E. Accurate Form 26Q filing ensures sellers can claim TDS credit in their tax returns.
What are the exceptions to Section 194Q?
Section 194Q does not apply to:
- Goods imported from outside India
- Transactions where TCS under Section 206C(1H) already applies
- Transactions where TDS is required under any other section
- Purchases from non-resident sellers
- Government entities (from the buyer's perspective) — though if you qualify as a buyer under 194Q, you must deduct TDS even when buying from an exempt entity
What is the impact of GST on TDS under Section 194Q?
GST is included in the value of goods for calculating TDS under Section 194Q. For example, if goods worth Rs. 60 lakh plus GST of Rs. 10.8 lakh are purchased, TDS applies on Rs. 20.8 lakh (Rs. 70.8 lakh total − Rs. 50 lakh threshold).
However, for determining whether the buyer's Rs. 10 crore turnover threshold is met, GST is excluded from the turnover calculation. This distinction is important for businesses operating near the threshold limit.
Key points to remember about Section 194Q
| Point | Detail |
|---|---|
| Threshold application | The Rs. 50 lakh threshold applies per seller — not cumulatively across all vendors |
| TDS calculation base | TDS applies only on the amount exceeding Rs. 50 lakh, not the entire purchase value |
| GST inclusion | GST is included in the TDS base amount but excluded from turnover calculations |
| Documentation | Maintain proper records of all purchases and TDS deducted for audit purposes |
| PAN verification | Always verify seller PAN before the first payment to avoid the 5% rate |
Section 194Q is a compliance obligation that applies automatically once your business crosses the Rs. 10 crore turnover threshold — and missing it can attract penalties equal to the full TDS amount. Building a simple vendor-wise purchase tracker and verifying PAN details at onboarding are the two most effective steps to stay compliant. If you are a business owner looking to purchase or expand commercial premises, Bajaj Housing Finance offers home loans and loans against property from 7.25% p.a.* p.a.* with amounts up to Rs. Rs. 15 Crore*. Check your eligibility today.
Home Loan in Different Cities
Home Loan in Mumbai
Home Loan in Ahmedabad
Home Loan in Bangalore
Home Loan in Chennai
Home Loan in Delhi
Home Loan in Hyderabad
Home Loan in Cochin
Home Loan in Noida
Home Loan in Pune
Home Loan for different budget
Check your pre-approved offer now
Our Calculators
Frequently Asked Questions
Overview
Documents and Process
Legal and Closure
What is 194Q TDS?
194Q TDS is a tax provision requiring buyers with over Rs. 10 crores turnover to deduct 0.1% tax when purchasing goods exceeding Rs. 50 lakhs from resident sellers.
What is 194Q 50 lakh limit?
The 194Q 50 lakh limit is the threshold of purchases from a single seller in a financial year, beyond which the buyer must deduct TDS at 0.1%.
Is 194Q TDS a TCS?
No, 194Q is not TCS (Tax Collected by Seller) but TDS (Tax Deducted by Buyer) on purchases exceeding Rs. 50 lakhs by buyers with turnover above Rs. 10 crores.
Is 194Q applicable on water?
Yes, 194Q applies to water purchased as goods from resident sellers if the buyer's turnover exceeds Rs. 10 crores and the purchase value crosses Rs. 50 lakhs in a financial year.
What do our customers say about us
customers
Play Store rating
reviews
Amit Shiva
Reviewed on
Smooth and transparent home loan process. The interest rates were competitive, and documentation was minimal. The team guided me clearly at every step, making my first home purchase stress-free. Highly recommended for quick approvals.
Sandeep Kulkarni
Reviewed on
The loan disbursal was fast, and the customer support team was extremely patient with all my queries. Flexible EMIs helped me manage my monthly expenses easily. A great experience for salaried homebuyers.
Ritika Agarwal
Reviewed on
I had a great experience while transferring my existing home loan. The process was quick, and I saved significantly with the lower interest rate. Customer service was helpful throughout. Highly recommended for balance transfers.
Manoj Verghese
Reviewed on
Clear guidance, quick approval, and flexible repayment options made buying my new house easier than expected. The team handled everything professionally. Very satisfied and would definitely recommend their home loans
Find your nearest branch
Watch our videos
Documents required to get a Bajaj Finserv Home Loan
Tips to increase your Home Loan eligibility
Things you need to know about pre-approved home loan
Things you need to know before applying for a Home Loan
How does Repo Rate affect your Home Loan
Download App
Now request money from your friends and family and make instant payments.
- Choose from personal, business, gold loans and more
- Pay utility bills, use UPI, get FASTag and more
- Buy over 1 million products on No Cost EMI
- Buy stocks, mutual funds and invest in FD
Disclaimer
1. Bajaj Finance Limited (“BFL”) is a Non-Banking Finance Company (NBFC) and Prepaid Payment Instrument Issuer offering financial services viz., loans, deposits, Bajaj Pay Wallet, Bajaj Pay UPI, bill payments and third-party wealth management products. The details mentioned in the respective product/ service document shall prevail in case of any inconsistency with respect to the information referring to BFL products and services on this page.
2. All other information, such as, the images, facts, statistics etc. (“information”) that are in addition to the details mentioned in the BFL’s product/ service document and which are being displayed on this page only depicts the summary of the information sourced from the public domain. The said information is neither owned by BFL nor it is to the exclusive knowledge of BFL. There may be inadvertent inaccuracies or typographical errors or delays in updating the said information. Hence, users are advised to independently exercise diligence by verifying complete information, including by consulting experts, if any. Users shall be the sole owner of the decision taken, if any, about suitability of the same.