Deferment in TDS Section 194-O of Income Tax Act 1961

Section 194-O of Income Tax Act 1961

• 194 O states for tax deduction at source by e commerce operator where consideration from

sale of good/services exceeds 5 lac rupees in

1. In case assessee have PAN/Aadhar Individual or HUF @ 1%.

2. In case assessee doesn't have PAN/Aadhar Individual or HUF @ 5%.

• E-commerce operator is required to deduct TDS at the

1. Time ofcredit or

2. payment

whichever is earlier.

• Credit means credit to the account of e-commerce participant and payment means payment through any mode.

• Assessee shall be Resident in India.

Change in Section 194-O

Deferment of TDS provisions vide newly inserted Section 194 O till 1.10.2020 vide Amendments to Finance Bill, 2020 passed by both Houses of Parliament.

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