Section 194R TDS on benefit or perquisite

In the Budget for 2022–2023, the government specified the new TDS section 194R of the Income Tax Act. The new section requires that anybody in charge of giving a resident any benefit or perquisite deduct tax at source equal to 10% of the value of all such benefits or perquisites before giving them to the resident. The benefit or perquisite may or may not be convertible into money but should arise either from carrying out of business, or from exercising a profession, by such resident. This deduction is not required to be made, if the value or aggregate of value of the benefit or perquisite provided or likely to be provided to the resident during the financial year does not exceed twenty thousand rupees. An individual or Hindu undivided family (HUF), whose total sales, gross receipts, or gross turnover from business did not exceed one crore rupees, or from profession did not exceed fifty lakh rupees, during the financial year immediately preceding the financial year in which such benefit or perquisite is provided by him, is also exempt from the requirement to deduct taxes.