Budget 2020: Now, Amazon orders to cost more if this amendment is enacted

Your Amazon order or Uber ride will now get a little more expensive if a proposed amendment in the Income Tax Act comes into force.

The Budget of 2020-21 has proposed the insertion of a new section in the Income Tax Act, Section 194-O. The proposal says tax deducted at source (TDS) is to be paid by an e-commerce operator for sale of goods or provision of service facilitated by the e-commerce portal or platform.

The new section, which is scheduled to come into force from April 1, proposes “to provide that e-commerce operator shall deduct TDS on all payments or credits to e-commerce participants at the rate of 1 per cent in PAN/Aadhaar cases and 5 per cent in non-PAN/Aadhaar cases”.