The Finance Act 2022, has inserted a new section 194R in the Income Tax Act, 1961 for the TDS on Benefit or Perquisite. The TDS shall be applicable from 1st July 2022.
The said section provides that person responsible for providing any benefit or perquisite to a resident arising from business or profession shall deduct TDS@10% of such value of benefit or perquisite.
A note summarizing the provisions of the said Section 194R can be downloaded from the below link.
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The information contained herein is based on the provisions of the Income Tax Act, 1961, Finance Act, 2022 and CBDT Circular No. 12 of 2022 dated 16th June 2022. While the information is believed to be accurate to the best of our knowledge, we do not make any representations or warranties, express or implied, as to the accuracy or completeness of this information. Reader should conduct and rely upon their own examination and analysis and are advised to seek their own professional advice. We accept no responsibility for any errors it may contain, whether caused by negligence or otherwise or for any loss, howsoever caused or sustained, by the person who relies upon it.