Understanding New Section 194Q : TDS on Purchase of Goods w.e.f. 01-07-2021

W.e.f. 01-07-2021, Section 194Q,  an important provision of the Income Tax Act, 1961 is getting applicable.

Under this section, TDS is required to be deducted on the purchase of Goods from certain vendors.

Please see the chart below to get a better understanding of this section.

Understanding Section 194Q
Section 194Q Flow Chart

Author: Amit Mundhra CA
Amit Mundhra FCA is a Fellow member of the Institute of Chartered Accountant of India. He is senior partner in Karnani & Co., Chartered Accountants. He is having 20+ years of experience in Income Tax, GST, VAT, Accounting, Audit and Assurance field.

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