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Section 194O TDS for Delivery Riders
Section 194O can require an e-commerce platform to deduct TDS from payments made to eligible delivery riders and other service providers operating through its platform. The general TDS rate is 0.1% on covered amounts paid or credited on or after 1 October 2024.
However, TDS deducted by a platform is not always your final tax liability. You may claim eligible TDS credit while filing your income tax return, after checking Form 26AS, AIS, income and allowable business expenses.
Section 194O at a Glance
- Section 194O: A TDS provision that applies to certain payments made by e-commerce operators to e-commerce participants.
- E-commerce operator: A person or platform that owns, operates or manages a digital or electronic facility for e-commerce.
- E-commerce participant: A resident seller or service provider supplying goods or services through an e-commerce platform.
- Gross amount: The covered amount paid or credited for transactions facilitated through the platform.
- TDS credit: Tax deducted at source that may be claimed in an ITR when correctly reported against the taxpayer’s PAN.
What Is Section 194O?
Section 194O requires an e-commerce operator to deduct TDS on payments to an eligible e-commerce participant.
For delivery partners, section 194O delivery partner questions arise when a platform deducts tax from delivery earnings before making the payout. The platform deposits this TDS with the government and reports it against the rider’s PAN.
Does Section 194O Apply to Delivery Riders?
It may apply where a delivery rider provides services through an e-commerce platform and the payment falls within Section 194O. For example:
- The rider performs delivery services through a digital platform.
- The platform credits or pays the rider for the services.
- The platform may deduct TDS before releasing the payout.
- The rider can check the reported deduction in Form 26AS and AIS.
Section 194O TDS Rate in 2026
The general 194O TDS rate is 0.1% of the gross amount paid or credited for covered transactions on or after 1 October 2024.
| Payment Period | General TDS Rate |
|---|---|
| Before 1 October 2024 | 1% |
| From 1 October 2024 | 0.1% |
₹5 Lakh Threshold Under Section 194O
The Section 194O deduction may not apply if all these conditions are met:
- The e-commerce participant is a resident individual or HUF.
- PAN or Aadhaar has been furnished.
- Gross sales or service receipts through the platform do not exceed ₹5 lakh during the relevant year.
Why Is TDS Deducted From Delivery Earnings?
TDS deducted from delivery partner earnings is a tax-collection mechanism. It is not automatically the final tax payable. You may see a deduction because:
- Section 194O applies to the covered platform payment.
- The applicable ₹5 lakh threshold has been crossed.
- PAN or Aadhaar details are missing or incorrect.
- The payout statement includes another tax deduction or adjustment.
- The platform has made non-TDS adjustments that should be reviewed separately.
Zomato, Swiggy and Delivery-Platform TDS
Searches such as "zomato TDS section" and "swiggy TDS" are common because platform payouts may show deductions without enough explanation. To identify the deduction correctly, check:
- Platform earnings or payout statement
- Form 26AS
- AIS
- TDS certificate, where available
- PAN details registered with the platform
How to Check TDS in Form 26AS and AIS
- Log in to the official Income Tax e-Filing portal.
- Open the Form 26AS or AIS service.
- Select the relevant financial year or tax year.
- Review the deductor name and TAN.
- Compare the reported TDS with the delivery-platform payout statement.
- Check whether the income and PAN details appear correctly.
- Keep records of any mismatch before filing the ITR.
Can Delivery Riders Claim a TDS Refund?
Yes, a rider may claim an eligible delivery rider TDS refund by filing an ITR and reporting the correct income, TDS credit and eligible expenses. A refund may arise when the TDS deducted is higher than the final tax liability calculated in the return. This can depend on:
- Total delivery income
- Income from other sources
- Eligible business expenses
- Deductions claimed
- Applicable tax regime
- Correctly reported TDS in Form 26AS or AIS
Expenses That May Matter for Delivery Riders
Subject to actual use, records and tax rules, riders may have business-related expenses such as:
- Petrol or EV charging
- Vehicle repair and maintenance
- Mobile and internet expenses used for delivery work
- Delivery bag, helmet, safety gear or work equipment
- Vehicle insurance, where relevant
- Platform service charges
- Other genuine work-related expenses
Which ITR Form Should a Delivery Rider Use?
The right ITR form depends on the rider’s business income, turnover, eligibility for presumptive taxation, other income and current tax rules.
ITR-3 or ITR-4 may be relevant in different situations. The correct form should be selected only after reviewing the rider’s actual income and eligibility. Read Easy Return’s ITR-3 vs ITR-4 guide for delivery riders before filing.
What If TDS Is Not Showing?
If the platform deducted TDS but it is not visible in Form 26AS or AIS:
- Check the correct year.
- Review the payout statement and date of deduction.
- Confirm that PAN is correctly registered with the platform.
- Allow time for the applicable reporting process.
- Contact the platform through its official support channel if the issue continues.
- Keep payout statements, screenshots and support-ticket records.
Common Mistakes to Avoid
✔ Right Actions
- Check Form 26AS and AIS to verify actual deductions.
- Update your PAN and Aadhaar with the platform correctly.
- Choose the correct ITR form (ITR-3 vs ITR-4).
✖ Pitfalls to Avoid
- Treating TDS as your final tax. It depends on income/deductions.
- Claiming unsupported personal expenses as business expenses.
- Claiming TDS that doesn't reflect in tax records.
- Filing a duplicate ITR. It creates processing problems.
Get Help Through the Easy Return App
Easy Return can help delivery riders understand TDS, ITR requirements and available filing support.
- Open the Easy Return App and log in.
- Select the ITR-related service.
- Enter the required income and TDS details.
- Review the available filing and verification guidance.
Frequently Asked Questions
What is Section 194O for delivery riders?
Section 194O is a TDS provision under which an e-commerce operator may deduct tax from covered payments made to eligible delivery riders or other service providers on its platform.
What is the Section 194O TDS rate in 2026?
The general rate is 0.1% of the gross amount paid or credited for covered transactions on or after 1 October 2024, subject to applicable law.
Is the ₹5 lakh threshold tax-free income?
No. It is a threshold for Section 194O TDS applicability for eligible resident individuals or HUFs. It does not determine final income-tax liability.
Can I claim a refund of Section 194O TDS?
You may claim an eligible TDS credit when filing your ITR. A refund depends on your final tax liability and the TDS correctly reported against your PAN.
Why is TDS deducted from my delivery earnings?
The platform may deduct TDS under Section 194O or another applicable provision. Compare your payout statement with Form 26AS and AIS to identify the deduction correctly.
What should I do if TDS is not showing in Form 26AS?
Check the relevant year, confirm PAN details with the platform and retain payout records. Contact platform support if the TDS remains missing.
TDS Deducted From Your Delivery Earnings?
CA Sagar Batra
ICAI Registered Chartered Accountant · 10+ Years of Professional Experience · 12,000+ Tax Filings
Chartered Accountant with experience in taxation, compliance and business advisory. His work covers Income Tax, GST, TDS, tax notices, business compliance and financial documentation for individuals and businesses across India.