Newly Incorporated Section 194R (Income Tax Act 1961)

As per clause (iv) of section 28 of the Act, the value of any benefit or perquisite, whether convertible into money or not, arising from business or exercise of profession is to be charged as business income in the hands of the recipient of such benefit or perquisite.
However, in many cases, such recipients do not report the receipt of benefits in their return of income, leading to furnishing incorrect particulars of income.
Accordingly, in order to widen and deepen the tax base, it was proposed to insert a new section 194R to the Act to provide that the person responsible for providing to a resident, any benefit or perquisite liable to deduct TDS under this section

Section	194R
Deductor	Any person other Any person other than an individual or HUF whose Total Sales, Gross Receipts/Turnover does not exceed Rs. 1 cr. In case of Business or Rs.50 Lac in case of Profession during the FY immediately preceding FY in which such benefit/perquisite is provided by such person.than an individual or HUF whose Total Sales, Gross Receipts/Turnover does not exceed Rs. 1 cr. In case of Business or Rs.50 Lac in case of Profession during the FY immediately preceding FY in which such benefit/perquisite is provided by such person.
Deductee-Resident/Non Resident/Both	Resident
Nature of Payment	Nature of Payment
Nature of Payment	TDS on Benefit/ Perquisite* in respect of Business/Profession (*whether convertible in money or not but if wholly in kind or partly in cash and partly in kind and such part in cash is not sufficient to meet the liability of deduction of tax, the deductor, before releasing the benefit or perquisite, ensure that tax required to be deducted has been paid in respect of the benefit or perquisite.
Threshold (In INR)	20,000
TDS Rate	10%
Remarks	Circular(12 of 2022) by department giving FAQ (Attached herewith)