Which code do I put on the TDS challan for section 194Q?

For tax deducted on or after 1 April 2026 use challan ITNS 281N and enter payment code 1031 in the section-wise payment table. For deductions up to 31 March 2026, the old challan ITNS 281 with the 1961 Act section still applies.

What is the threshold for section 194Q?

Up to ₹50 lakh a year from one seller, tax only on the excess; only a buyer with turnover above ₹10 crore in the previous year deducts.

Has the rate of TDS changed?

The new Act reorganises and renumbers the provisions. This page lists the general rate, and the threshold where one is shown, only where the published tables agree. Check both for your payment on the e-filing portal or in the Act itself.

INCOME-TAX ACT 2025 · FROM 1 APRIL 2026

Section 194Q (purchase of goods): new TDS payment code 1031

From 1 April 2026, section 194Q of the Income-tax Act 1961 (purchase of goods) is reported under the Income-tax Act 2025 as payment code 1031 (purchase of goods), under section 393(1) Sl. 8(ii).

OLD SECTION	NEW CODE	NEW SECTION REFERENCE	NATURE OF PAYMENT	GENERAL RATE	NO TDS BELOW
194Q	1031	393(1) Sl. 8(ii)	Purchase of goods	0.1%	Up to ₹50 lakh a year from one seller, tax only on the excess; only a buyer with turnover above ₹10 crore in the previous year deducts

What changed

The Income-tax Act 2025 replaces the separate 194-series sections with one table. Salary sits in section 392, almost every other deduction in section 393, and collection at source in section 394. Each row of the table has a four-digit payment code, and that code replaces the section number on challans and in quarterly statements. The period is now called the Tax Year, which is the same twelve months as the financial year.

Worked example

A buyer within the rule buys goods worth ₹1,00,00,000 from one seller in the year. The first ₹50,00,000 carries no tax. Tax at 0.1% on the remaining ₹50,00,000 is ₹5,000.

Common questions

What is the new code for section 194Q?: From 1 April 2026, section 194Q of the Income-tax Act 1961 (purchase of goods) is reported under the Income-tax Act 2025 as payment code 1031 (purchase of goods), under section 393(1) Sl. 8(ii).
Which code do I put on the TDS challan for section 194Q?: For tax deducted on or after 1 April 2026 use challan ITNS 281N and enter payment code 1031 in the section-wise payment table. For deductions up to 31 March 2026, the old challan ITNS 281 with the 1961 Act section still applies.
What is the threshold for section 194Q?: Up to ₹50 lakh a year from one seller, tax only on the excess; only a buyer with turnover above ₹10 crore in the previous year deducts.
Has the rate of TDS changed?: The new Act reorganises and renumbers the provisions. This page lists the general rate, and the threshold where one is shown, only where the published tables agree. Check both for your payment on the e-filing portal or in the Act itself.

Have challans to enter?

Drop the challan PDFs, old ITNS 281 or new 281N, and get one Excel sheet with the code, BSR, date and breakup.

Challan PDF to Excel

OTHER SECTIONS

194 194A 194C 194D 194E 194H 194I 194IC 194J 194LBC 194N 194O 194R 194S 194T 195

Compiled from two published code tables (TDSMAN rate chart and Terra Insight payment-code reference, both read on 18 September 2026) and confirmed against real ITNS 281N challan receipts for code 1031. Only rows on which both tables agree are listed. TCS codes, the salary codes under section 392 and code 1038 are left out because the tables disagree. Confirm on the income-tax e-filing portal before filing. Thresholds read on 8 October 2026 from the Finance Bill 2025 memorandum on indiabudget.gov.in (official; it sets the 194A, 194H, 194I and 194J figures under the 1961 Act from 1 April 2025) and from TDSMAN, TaxGuru, Tax Garden and Terra Insight, whose guides apply them to section 393 of the 2025 Act. A threshold is shown only where at least two sources agree. Some sites quote a different rent figure; it is not used. Confirm on the e-filing portal before relying on it.