Section 194O TDS Calculator
Work out the TDS an e-commerce operator (Amazon, Flipkart, Meesho…) deducts on your sales — at 0.1%, the ₹5 lakh Individual/HUF exemption, and the 5% no-PAN rate — live on one screen.
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- Rules cited on the page
Enter your figures — the result on the right updates as you type.
TDS breakdown u/s 194O
Reconcile your 194O TDS & file your return
We match your 26AS / AIS with platform payouts and claim every rupee of TDS credit.
Disclaimer: Indicative estimate under Section 194O of the Income-tax Act. The reduced 0.1% rate is effective 1 Oct 2024 (was 1%). Actual deduction depends on the operator's assessment, residential status and PAN/Aadhaar linkage. Not tax advice.
Section 194O in brief
Section 194O makes the e-commerce operator (Amazon, Flipkart, Meesho, Zomato, Swiggy and similar platforms) responsible for deducting TDS on the gross amount of sales of goods or services made by an e-commerce participant (the seller) through the platform. The tax is cut at the time of payment or credit, whichever is earlier, on the full gross value before the platform's commission.
Rates & the ₹5 lakh threshold
The rate depends only on whether PAN/Aadhaar was furnished. The threshold exemption is available only to Individual / HUF participants; companies, firms and other sellers have no threshold and TDS applies from the first rupee.
| PAN / Aadhaar furnished | 0.1% |
| PAN not furnished (Sec 206AA) | 5% |
| Rate before 1 Oct 2024 | 1% |
| Individual / HUF, gross ≤ ₹5L, PAN furnished | Nil |
| Individual / HUF, gross > ₹5L | On full gross |
| Other sellers (company / firm) | No threshold |
Worked examples
Three scenarios for an Individual / HUF seller show how the threshold and the no-PAN override change the deduction:
Key terms explained
E-commerce operator
The person who owns, operates or manages the digital platform for sale of goods or services and is responsible for making the payment to the seller — e.g. Amazon, Flipkart, Meesho. It is the operator, not the buyer, who deducts the 194O TDS.
E-commerce participant
The seller — a resident who sells goods or provides services through the operator's platform. Individuals and HUFs enjoy the ₹5 lakh nil-TDS threshold (with PAN); other participants do not.
Gross amount
TDS is on the full gross sale value facilitated through the platform, before deducting the operator's commission, fees or logistics charges. Even amounts collected directly by the buyer are treated as facilitated by the operator.
Credit & 26AS
194O TDS is not an extra cost — it is an advance tax. It appears in your Form 26AS / AIS and is fully adjustable against your income-tax liability, with any excess refundable when you file your return.
Questions people ask
Short answers on TDS for E-commerce (194O). Tap a question to open it.
01What does section 194O require?
An e-commerce operator to deduct 0.1% TDS on the gross amount of sales of goods or services made by a resident e-commerce participant through its platform, at the time of credit or payment, whichever is earlier.
02Is there any threshold?
For an individual or HUF participant, no TDS is deducted where the gross amount during the year does not exceed ₹5 lakh, provided PAN or Aadhaar has been furnished. There is no threshold for other participants.
03Is TDS deducted on the gross amount or on my payout?
On the gross amount of the sale, before deducting the platform's commission, logistics charges or any other fee. That is why the TDS in 26AS is larger than a percentage of what actually reaches your bank.
04How does 194O interact with GST TCS?
They are separate. The operator collects GST TCS at 0.5% under section 52 of the CGST Act and deducts income-tax TDS at 0.1% under section 194O. Both appear in different statements and both are credited to you.
05What if I do not give my PAN to the platform?
TDS is deducted at 5% instead of 0.1%, and the credit cannot be traced to you. Every marketplace seller should verify that the PAN on the platform matches the one used for filing.
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Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.