Have purchases from one seller crossed the limit this year, and how much TDS is due on the amount above it? Pick the financial year and the section and return form change with it — from FY 2026‑27 this is section 393(1) of the new Act, filed in Form 140.
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The PaisaMatch Plus desktop app measures on invoice value (including GST) by default, because many firms follow that practice. CBDT Circular 13/2021 says that when GST is shown separately at the time of credit, TDS applies to the amount excluding GST. The two can give different answers — a seller near the limit may cross it on one basis and not the other. So the calculation uses whatever amount you enter: enter it on the basis your firm follows.
A buyer whose turnover in the previous financial year was more than ₹10 crore, when purchases of goods from one resident seller in the year are more than ₹50 lakh. TDS applies only to the amount above ₹50 lakh.
0.1% of the purchase value above the limit, or 5% if the seller has not given a PAN.
CBDT Circular 13/2021 says that when GST is shown separately at the time of credit, TDS is on the amount excluding GST. Many firms still measure the limit on the invoice value including GST — near the limit the two can give different answers, so enter the amount on the basis your firm follows.
From FY 2026-27, TDS on purchase of goods is under section 393(1) of the Income-tax Act 2025, and the quarterly TDS statement is Form 140 in place of Form 26Q.
No. TCS on the sale of goods under section 206C(1H) was withdrawn from 1 April 2025. The buyer’s TDS under 194Q continues.