TDS SECTION-194R

TDS U/S 194R As we all know In the recent budget 2022 in Income Tax, it is proposed to impose a TDS on business promotion expenditure expended by an organisation. It has far reaching implications even in the hands of the recipients of the business promotion Expenditure. Overview: 1. The TDS is applicable on Any Resident who is providing any benefit/perquisite to another Resident 2. The Benefit/Perquisite has to be in kind and arising from Business & Profession (BP) 3. TDS should be deducted at 10% on the value or aggregate of value of such benefit or perquisite: 4. TDS should be deducted before providing such benefit or perquisite 5. TDS applicable even when cash is not sufficient for payment of the same 6. No TDS incase of benefit/perk per person is not more than 20,000 in a FY 7. No TDS when deductor is an Individual/HUF in business/professional with turnover/receipts in business/professional below Rs.1Cr / Rs.50 Lakhs 8. This amendment will take effect from 1st July, 2022. Short-Introduction

Section 194R

​Tds on Benefit or perquisites of a business or profession

​Threshold 20,000.00

​Rate 10%