Jul 7, 2021
MBG | Applicability of New Section 194Q of Income Tax Act (ITA), 1961
The Finance Act, 2021, inserted Section 194Q in the Income Tax Act, 1961 (ITA) for deduction of tax at Source (TDS) on purchase of Goods at the rate of 0.1% of the purchase value exceeding INR 5 million. Section 194Q provides applicability of TDS by person (Buyer) responsible for paying any sum to resident (Seller) for purchase of goods subject to certain conditions with effect from July 1, 2021.