{"id":24430,"date":"2023-04-27T14:17:18","date_gmt":"2023-04-27T08:47:18","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=24430"},"modified":"2023-04-27T14:17:18","modified_gmt":"2023-04-27T08:47:18","slug":"guidelines-issued-by-cbdt-on-sec-194r","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/guidelines-issued-by-cbdt-on-sec-194r\/","title":{"rendered":"Guidelines Issued By CBDT on Sec 194R"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d04d9b9f38e\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d04d9b9f38e\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/guidelines-issued-by-cbdt-on-sec-194r\/#Clarifications_Guidelines_Issued_By_CBDT_on_Section_194R\" title=\"Clarifications\/ Guidelines Issued By CBDT on Section 194R\">Clarifications\/ Guidelines Issued By CBDT on Section 194R<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/guidelines-issued-by-cbdt-on-sec-194r\/#Valuation_Of_Perquisite_Benefit\" title=\"Valuation Of Perquisite\/ Benefit :\">Valuation Of Perquisite\/ Benefit :<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-24431\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2023\/04\/cbdt-on-section-194R.jpeg\" alt=\"cbdt-on section-194R\" width=\"1200\" height=\"630\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2023\/04\/cbdt-on-section-194R.jpeg 1200w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2023\/04\/cbdt-on-section-194R-300x158.jpeg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2023\/04\/cbdt-on-section-194R-1024x538.jpeg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2023\/04\/cbdt-on-section-194R-768x403.jpeg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2023\/04\/cbdt-on-section-194R-800x420.jpeg 800w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"Clarifications_Guidelines_Issued_By_CBDT_on_Section_194R\"><\/span><span style=\"color: #000080;\">Clarifications\/ Guidelines Issued By CBDT on Section 194R<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>1). The deductor is not needed to check whether the amount of perquisite\/ benefit that he is providing would be taxable in the hands of the recipient under section 28. Income tax Section 194R casts an obligation on the person responsible for providing any benefit or perquisite to a resident, to deduct tax at source @ 10%. There is no further needed to check whether the amount is taxable in the hands of the recipient or under which section it is taxable. Moreover, Section 194R would apply irrespective of the fact whether the perquisite\/ benefit is in the nature of capital asset or not.<\/p>\n<p>2) Tax deducted at source provisions given under section 194R would not be applicable in case of one-time loan settlement with borrowers or waiver of loan granted on reaching settlement with the borrowers by the below origination:<\/p>\n<p style=\"padding-left: 40px;\">\u27a2 Public company engaged in providing long term finance for construction or purchase of houses in India for residential purpose and which is registered in accordance with the direction\/ guidelines issued by the National Housing Bank formed under National Housing Bank Act 1987<\/p>\n<p style=\"padding-left: 40px;\">\u27a2 State Financial Corporation<\/p>\n<p style=\"padding-left: 40px;\">\u27a2 State Industrial Investment Corporation being a Govt company, engaged in the business of providing long[1]term finance for industrial projects;<\/p>\n<p style=\"padding-left: 40px;\">\u27a2 Deposit taking NBFC<\/p>\n<p style=\"padding-left: 40px;\">\u27a2 PFI &#8211; Public Financial Institution<\/p>\n<p style=\"padding-left: 40px;\">\u27a2 Scheduled Bank<\/p>\n<p style=\"padding-left: 40px;\">\u27a2 Cooperative bank (other than a primary agricultural credit society)<\/p>\n<p style=\"padding-left: 40px;\">\u27a2 Primary co-operative Agricultural &amp; Rural Development Bank<\/p>\n<p style=\"padding-left: 40px;\">\u27a2 Systemically Important Non-deposit Taking NBFC<\/p>\n<p style=\"padding-left: 40px;\">\u27a2 Registered ARC &#8211; Companies<\/p>\n<ol>\n<li style=\"list-style-type: none;\">\n<ol start=\"3\">\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Valuation_Of_Perquisite_Benefit\"><\/span><span style=\"color: #000080;\">Valuation Of Perquisite\/ Benefit :<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ol>\n<\/li>\n<\/ol>\n<p style=\"padding-left: 40px;\">\u27a2 Where the perquisite\/ benefit provider has purchased the perquisite\/ benefit before providing it to the recipient, the value of such perquisite\/ benefit shall be the purchase price.<\/p>\n<p style=\"padding-left: 40px;\">\u27a2 In case perquisite\/ benefit provider manufactures such items given as benefit\/perquisite, the value of such benefit\/perquisite shall be the price that it charges to its customers for such items. It has been further clarified that Goods and Services tax would not be included for the purposes of valuation of benefit\/perquisite for Tax deducted at source under section 194R.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone  wp-image-24432\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2023\/04\/Clarifications-Guidelines-Issued-By-CBDT-on-Section-194R.png\" alt=\"Clarifications Guidelines Issued By CBDT on Section 194R\" width=\"843\" height=\"419\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2023\/04\/Clarifications-Guidelines-Issued-By-CBDT-on-Section-194R.png 318w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2023\/04\/Clarifications-Guidelines-Issued-By-CBDT-on-Section-194R-300x149.png 300w\" sizes=\"(max-width: 843px) 100vw, 843px\" \/><\/p>\n<p style=\"padding-left: 40px;\">4) Threshold of INR 20,000 is with respect to the financial year, calculation of value or aggregate of value of the benefit or perquisite triggering deduction under section 194R has to be counted from 1.04.2022.<\/p>\n<p style=\"padding-left: 40px;\">if the value or Total value of the perquisite or benefit provided or likely to be provided to a resident exceeds INR 20,000 during Financial Year 2022-23 (including the period up to 30th June 2022),<\/p>\n<p style=\"padding-left: 40px;\">Provisions of Income Tax Section 194R shall apply on any perquisite or benefit provided on or after 1st July 2022. But, it is to be noted that the benefit or perquisite which has been provided on or before 30th June 2022, would not be subject to tax deduction under Section 194R.<\/p>\n<ol start=\"5\">\n<li>The Tax deducted at source Implications Where Product Is Given To A Social Media Influencer For Using The Product And Reviewing The Same By Making An Audio\/Video About The Same:<\/li>\n<\/ol>\n<p style=\"padding-left: 40px;\">\u27a2 In case of benefit or perquisite being a product like car, mobile, outfit, cosmetics, etc and if the product is returned to the manufacturing company after using for the purpose of rendering service, then it will not be treated as a benefit\/perquisite for the purposes of Section 194R.<\/p>\n<p style=\"padding-left: 40px;\">\u27a2 But, if the product is retained then it would be in the nature of benefit\/perquisite and tax is required to be deducted accordingly under section 194R.<\/p>\n<p>6) Company \u201cXYZ \u201d Gifts A Car To Its Dealer \u201cABC\u201d And Deducted Tax On This Benefit under section 194R. Dealer \u201cABC\u201d Uses This Car In His Business. Will He Get Deduction For Depreciation In Calculating His PGBP Income? Once Company \u201cXYZ \u201d has deducted tax on gifting of car in accordance with Section 194R and dealer \u201cABC\u201d has included this benefit as income in his Income tax return, it would be deemed that the &#8220;actual cost&#8221; of the car for the purposes of Section 32 shall be the amount of benefit included by dealer \u201cABC\u201d as income in his Income tax return. So, dealer \u201cABC\u201d can get depreciation on fulfilment of other conditions for claiming depreciation.<\/p>\n<p>7) Tax deducted at source under section 194R is not required to be deducted on issuance of bonus or right shares by a company in which the public are substantially interested, where bonus shares are issued to all shareholders by such a company or right shares are offered to all shareholders by such a company, as the case may be<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Clarifications\/ Guidelines Issued By CBDT on Section 194R 1). The deductor is not needed to check whether the amount of perquisite\/ benefit that he is providing would be taxable in the hands of the recipient under section 28. Income tax Section 194R casts an obligation on the person responsible for providing any benefit or perquisite &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[6004,4069,10093],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/24430"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=24430"}],"version-history":[{"count":1,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/24430\/revisions"}],"predecessor-version":[{"id":24433,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/24430\/revisions\/24433"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=24430"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=24430"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=24430"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}