Pro & BusinessSection 393 labels from FY 2026-27, 194Q for earlier years
TDS sec 393 (old 194Q) tracked for you
Purchases per supplier against ₹50 lakh, 0.1% kept back on payments, challan dues for the month and a quarterly summary your CA files from.
Rules checked by a CA · Your CA joins free
PAN check
Quarterly summary
Export to Tally
How it works
The ₹50 lakh line, watched for you
You enter purchase bills as usual. The tracker does the counting.
- 1
Turn it on once
If your turnover was above ₹10 crore last year, switch on the tracker. Opening purchases for the year come from your import.
- Turnover FY 2025-26: ₹12.6 Cr
- Tracker on from 01-04-2026
- 2
Bills count against ₹50 lakh
Each purchase bill adds to the supplier's total for the year. You get a warning when a supplier passes ₹40 lakh.
- Shree Ganesh Cables: ₹46.8 L
- PAN valid
- 3
0.1% kept back on payment
Once the limit is crossed, the payment screen keeps back 0.1% of the amount above ₹50 lakh, or 5% when the supplier's PAN is not valid.
- TDS ₹280 on bill of 08-10
- Challan due by 07-11
Inside the app
Every supplier against the limit
What changed in 2026
194Q is now section 393
The Income-tax Act 2025 came into force on 1 April 2026, and TDS on purchase of goods moved to section 393(1). The rule stays close to what you know: 0.1% above ₹50 lakh per supplier, for buyers above ₹10 crore turnover. The labels on challans and returns change.
- Right label per year: sec 393 for FY 2026-27, 194Q for earlier years, so old and new records both read correctly.
- PAN checks: a supplier with an inoperative PAN is flagged before October, when the 5% rate would bite.
- For your CA: a quarterly summary with each supplier's PAN and amount, ready for the TDS return.
Worked example
How 0.1% is worked out
A ₹12.6 Cr distributor buys cable from one supplier. TDS applies only to the part above ₹50 lakh in the financial year.
| Bill | TDS |
|---|---|
| Apr–Sep: ₹46,80,000, running total ₹46,80,000 | ₹0 |
| 08-10-2026: ₹6,00,000, running total ₹52,80,000 (₹2,80,000 above) | ₹280 |
| 22-10-2026: ₹4,00,000, all above the limit | ₹400 |
| October total, deposited by 07-11-2026 | ₹680 |
TDS tracker price
Part of Pro and Business
The section 393 tracker comes with Pro and Business, with no extra charge. Prices before GST.
Compare plansFree
₹0
20 / month
Pro
₹999/mo
1,000 / month
Business
₹2,499/mo
5,000 / month
Is 194Q still applicable in FY 2026-27?
For purchases from 1 April 2026, TDS on purchase of goods sits in section 393(1) of the Income-tax Act 2025. Purchases up to 31 March 2026 stay under section 194Q of the old Act.
Who has to deduct TDS on purchase of goods?
A buyer whose total sales, gross receipts or turnover from business was more than ₹10 crore in the previous financial year, when it buys goods worth more than ₹50 lakh from one resident seller in the year.
What is the rate?
0.1% of the purchase value above ₹50 lakh from that seller in the financial year, or 5% if the seller has not given a valid PAN.
Does TCS under 206C(1H) still apply?
No. TCS on sale of goods under section 206C(1H) does not apply from 1 April 2025. Only the buyer's TDS remains.
Does Moharbill file the TDS return?
No. Moharbill prepares the monthly challan amount and a quarterly summary with each supplier's PAN and amount. Your CA files the return from it.
Works well with
Section 393 explainedThe full guide with a worked example
For distributorsBeat-wise billing, schemes and udhaarImport from TallyParties, items and balances in about 10 minutesMore features
Pakka bill, har baar.
Never miss the ₹50 lakh line again
The TDS tracker is on Pro and Business. Your CA joins free.
