section 194R of Income tax -TDS on benefit or perquisite in respect of business or profession
Tax Deduction on benefits or perquisites paid in respect of business or profession - Analysis of Section 194R
TDS ON BUSINESS PERQUISITES OR BENEFITS - ANALYSIS OF SECTION 194R
New amendment has been made in the Income Tax Act w.e.f 1st July,2022 introducing section 194R which provides for TDS on any benefits or perquisites provided in respect of business or profession.
Let us understand the section 194R
1.Any person who is responsible for providing any benefit or perquisite to any resident in the course of any business or profession is required to deduct tax at the rate of 10% before providing the benefits or perquisites.
2. The benefits or perquisites may be in cash or maybe in kind.
3. Where the benefits or perquisites are partly in cash or fully in kind, the person responsible for paying shall ensure that the full amount of TDS has been paid before providing such benefit or perquisites.
4. The TDS is not applicable under this section if the total benefit or perquisite to be paid during the Financial year does not exceed Rs.20000.
5. The above TDS also does not apply to any individual or HUF whose gross turnover/receipts from business did not exceed Rs.1 Crore and Rs.50 lakhs (in case of Profession) during the previous financial year.
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