PROACTIVE------QUALITY ------TRUST------REACHABLE------DYNAMIC------STANDARD------HANDHOLDING------PENNYWORTH------PROFESSIONALISM------RESPONSIVE------VALUE CHAIN. Tax will now be deducted under Sec. 194R on foreign trips, gifts, free sample - JATIN RATHOR ASSOCIATES
CA near me

Tax will now be deducted under Sec. 194R on foreign trips, gifts, free sample

Section 194R requires  a person, who is responsible for providing any benefit or perquisite to a resident to deduct tax at source 10%  wef 1.07.2022 of the value or aggregate of value of such benefit or perquisite before providing such benefit or perquisite in cash or in kind. The recent Income tax  Department  circular contains the cases where it has clarified the applicability of TDS under 194R.

TDS  under 194 R would be applicable in the following  cases:

1 Any asset given as benefit or perquisite that may be capital asset in general sense of the term like car, land, building, Shares etc.

2.Free samples or products  are provided as free samples to any resident

3.Incentives (other than discount  rebate)  in  the form of cash or kind such as car, TV, computers, gold coin, silver coin, mobile phone, Laptop, Hard drives, gifts etc.

4,Sponsor a trip or provide free tickets of event for the   recipient  and  his/her relatives upon achieving certain targets

Cases where tax deduction is not required are as follows:-

1-The 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 Rs 20,000/-

2.The   responsibility of tax deduction also does not apply to a per-son, being an Individual/Hindu undivided  family (HLTF) deduct or, whose  total sales / gross receipts / gross turnover from business does not exceed one  crore rupees, or from profession  does  not  exceed  fifty lakh  rupees, during the financial year immediately preceding the financial year in which such benefit  or  perquisite  is provided by him.

Leave a Comment