CBDT issue guidelines for removal of difficulties U/s 194R(2) of I. Tax Act.
- Guidelines for removal of difficulties U/s 194R(2) of the Income-tax Act w. e. f. July 1, 2022,
- The Finance Act 2022, New section 194R of the Income-tax Act was inserted under the Income-tax Act.
- Before providing any benefit or perquisite to a resident, a person who is responsible for providing such benefit or perquisite must TDS @ 10% of the value or aggregate of value of such benefit or perquisite. Benefits or perquisites may or may not be convertible into money, but they must originate from such resident's commercial or professional activities.
- If the value or aggregate value of benefits or perquisites supplied or projected to be awarded to residents during the fiscal year does not exceed Rs. 20,000/-
- Individual/Hindu undivided family (HUF) deductor whose total sales / gross receipts / gross turnover from business does not exceed 1 Crore Rupees, or from profession does not exceed Rs 50,000/- lakh, during the FY immediately preceding the FY in which such benefit or perquisite is provided by him, is also exempt from tax deduction.
- With the approval of the Central Govt, Section 194R(2) of the Income Tax Act authorises the CBDT to publish instructions for the resolution of obstacles. These rules must be put before each House of Parliament and are binding on the income-tax authorities as well as the person who provides the benefit or perquisite.
- In order to exercise the authority conferred by Section 194R(2) of the Income Tax Act, the CBDT with the prior approval of the Central Government, hereby issues the following guidelines:-
CBDT through Income Tax Circular No. 12/2022 dated 16.06.2022, Issues Guidelines for removing difficulties on implementation of Section 194R On guidelines on TDS.
