Section 194O TDS for Delivery Riders: Rate, Threshold and Refund

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.

A delivery rider should check the platform payout statement, Form 26AS and Annual Information Statement (AIS) before filing an ITR.

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:

1. The rider performs delivery services through a digital platform.
2. The platform credits or pays the rider for the services.
3. The platform may deduct TDS before releasing the payout.
4. The rider can check the reported deduction in Form 26AS and AIS.

The exact treatment depends on the rider’s contract, residential status, PAN details, annual receipts and the current applicable law. Do not assume that every payout deduction is TDS.

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.

A higher rate may apply if PAN or Aadhaar is not furnished, subject to the applicable tax provisions. Make sure your PAN details are correctly updated with the delivery platform.

₹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.

If you are wondering why TDS is cut from delivery earnings, compare your platform payout statement with Form 26AS and AIS. This helps identify actual TDS separately from incentives, service fees, cash adjustments, penalties or other deductions. Read Easy Return’s why TDS is high for delivery riders guide for more details.

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

Do not rely only on a payment notification. A platform payout can include multiple deductions, and only official tax records confirm whether an amount has been reported as TDS.

How to Check TDS in Form 26AS and AIS

1. Log in to the official Income Tax e-Filing portal.
2. Open the Form 26AS or AIS service.
3. Select the relevant financial year or tax year.
4. Review the deductor name and TAN.
5. Compare the reported TDS with the delivery-platform payout statement.
6. Check whether the income and PAN details appear correctly.
7. Keep records of any mismatch before filing the ITR.

Form 26AS and AIS help establish reported TDS credit. They do not automatically mean that a refund will be issued. Use Easy Return’s Form 26AS and AIS guide for delivery riders for detailed instructions.

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

A refund is not guaranteed merely because TDS was deducted. If final tax liability is equal to or greater than the TDS credit, no refund may be due.

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

Keep bills, invoices, bank records and platform statements. Do not claim personal expenses as business expenses or claim amounts without support.

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.

Do not claim an unsupported TDS amount in the ITR. See Easy Return’s TDS not showing for delivery riders guide for next steps.

Common Mistakes to Avoid

Get Help Through the Easy Return App

Easy Return can help delivery riders understand TDS, ITR requirements and available filing support.

1. Open the Easy Return App and log in.
2. Select the ITR-related service.
3. Enter the required income and TDS details.
4. Review the available filing and verification guidance.

Frequently Asked Questions