Calculate Section 194O E-commerce TDS for 2026-27 using the current Section 393 rules. Check 0.1% TDS on gross e-commerce sales or services and the ₹5 lakh individual/HUF no-deduction condition.
The Section 194O E-commerce TDS Calculator estimates TDS on qualifying goods sales and services facilitated through an e-commerce operator. For Tax Year 2026-27, the current provision is Section 393(1), Table 8(v), of the Income-tax Act, 2025. Income-tax Department — Section 393
Online sellers, service providers, marketplace participants, CAs, accountants, and finance teams can use the calculator to check the deduction on gross e-commerce sales or services.
Section 393(1), Table 8(v), prescribes TDS at 0.1% of the gross amount of the sale of goods, provision of services, or both, when an e-commerce operator facilitates the transaction through its digital or electronic facility or platform. The general threshold in Table 8(v) is nil. Income-tax Department — Section 393
Formula:
E-commerce TDS = Gross amount of sales/services × 0.1%
TDS amounts are rounded to the nearest multiple of ₹10 under the Income Tax Department's current TDS guidance. Income Tax Department — TDS guidance
An individual or HUF participant can fall within the no-deduction rule when the participant is an individual or HUF, gross sales/services through the operator do not exceed ₹5 lakh during the tax year, and PAN or Aadhaar has been furnished to the operator. Income-tax Department — Section 393 no-deduction rule
For an eligible individual with ₹4,80,000 of annual qualifying sales and PAN furnished, the e-commerce TDS under this provision is ₹0. The ₹5 lakh condition is an exemption, not a general rate threshold for every participant.
The calculator covers e-commerce TDS only. It doesn't calculate your final income-tax liability, GST, marketplace commission, or business profit.
Priya sells handmade home products through an online marketplace. Her gross sales facilitated through the platform during Tax Year 2026-27 are ₹8,00,000. She is an individual and has furnished her PAN to the operator.
Her gross annual sales exceed ₹5 lakh. The individual/HUF no-deduction condition therefore doesn't apply.
Gross e-commerce sales = ₹8,00,000
TDS rate = 0.1%
TDS before rounding = ₹8,00,000 × 0.1%
= ₹800
TDS payable = ₹800
The 0.1% calculation gives Priya a TDS amount of ₹800.
Now consider Suresh. His gross annual e-commerce sales are ₹4,50,000. He is an individual and has furnished his PAN to the operator.
Gross annual sales = ₹4,50,000
Individual/HUF condition = Satisfied
TDS = ₹0
Your result changes when the ₹5 lakh condition stops applying. For ₹5,00,000.01 of qualifying annual sales, the exemption no longer applies and 0.1% is calculated on the gross amount.
If your income comes from foreign clients or platforms rather than an Indian e-commerce marketplace, use Toolisky's Payments from Abroad Tax Calculator for the separate foreign-payment tax question.
Tax Year 2026-27 uses the Income-tax Act, 2025. The Income-tax Department confirms that the Income-tax Act, 1961 was repealed effective April 1, 2026. Income Tax Department — current Act transition
Section 393(1), Table 8(v), sets the e-commerce operator TDS rate at 0.1% of the gross amount of qualifying sales or services. The table lists a nil general threshold. Income-tax Department — Section 393
For qualifying individual or HUF participants, Section 393(4), Table 11, provides no deduction where the gross sales/services through the operator do not exceed ₹5 lakh during the tax year and PAN or Aadhaar has been furnished. Income-tax Department — Section 393 no-deduction rule
The old Section 194-O rate changed from 1% to 0.1% with effect from October 1, 2024. Finance Act 2024 made that rate change, so the familiar 0.1% rate was already in force before the new Act replaced the old section reference. Finance Act 2024 — Section 194-O amendment
Section 393 also treats certain direct customer payments as amounts credited or paid by the e-commerce operator. Those amounts enter the gross amount used for TDS under Table 8(v). Income-tax Department — Section 393
The operator deducts tax when the relevant amount is credited or paid to the e-commerce participant, whichever occurs earlier. Income-tax Department — Section 393
The current e-commerce TDS rate is 0.1% of the gross amount of qualifying goods sales or services. For Tax Year 2026-27, Section 393(1), Table 8(v), of the Income-tax Act, 2025 contains the provision. Section 194-O is the old Act reference that many sellers still use when searching for the rule.
The e-commerce TDS rule still applies, but the current section number is 393 under the Income-tax Act, 2025. Section 194-O belonged to the Income-tax Act, 1961, which the Income-tax Department says was repealed effective April 1, 2026. For current transactions, use Section 393.
Yes, but the exemption has conditions. The e-commerce participant must be an individual or HUF, gross sales/services through the operator must not exceed ₹5 lakh during the tax year, and PAN or Aadhaar must have been furnished to the operator. The rule appears in Section 393(4), Table 11.
If the individual/HUF no-deduction conditions don't apply, calculate 0.1% on the gross amount. For ₹8,00,000, the TDS is ₹800. The calculation doesn't apply 0.1% only to the ₹3 lakh amount above the ₹5 lakh exemption figure.
Yes. Section 393 covers a sale of goods, provision of services, or both when an e-commerce operator facilitates the transaction through its digital or electronic facility or platform. A qualifying online service provider can therefore fall within the e-commerce TDS provision.
The e-commerce operator is treated as the person responsible for paying the e-commerce participant for this provision. TDS is deducted when the relevant amount is credited or paid, whichever occurs earlier, subject to the conditions in Section 393.
No. E-commerce TDS is a deduction at source, not your final tax rate. The deducted amount relates to the TDS system. Your final income-tax liability depends on your taxable income and the other provisions applicable to your return.
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For informational purposes only. Results are estimates based on the inputs you provide and the rules in effect for the period shown, and are not tax, legal or financial advice. Verify figures against the relevant official source and consult a qualified professional before acting on them. Accuracy & limitations
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