CBDT on Additional Guidelines for removal of difficulties under sub-section (2) of section 194R of the Income-tax Act, 1961

Sep 13, 2022 | by TeamLease RegTech Legal Research Team

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Finance & Taxation ComplianceThe Central Board of Direct Taxes (CBDT) on September 13, 2022, issued Additional Guidelines for the removal of difficulties under sub-section (2) of section 194R of the Income-tax Act, 1961.

According to the new clause, anybody who is in charge of giving a resident any benefit or perquisite must withhold tax at a source equal to 1% of the value of all such benefits or perquisites before giving them to the resident. The advantage of perquisite may or may not be exchangeable for cash and must result from the resident's professional or business activities.

If the resident receives or is anticipated to receive a benefit or perk throughout the financial year, and the total value of those benefits or perks does not exceed 20,000 rupees, then this deduction is not necessary.

A person who is an Individual/Hindu Undivided Family (HUF) deductor and whose total business sales, gross receipts, or gross turnover during the financial year that ended right before the fiscal year in which such benefit or perquisite is provided by him does not exceed one crore rupees, or whose total professional sales does not exceed fifty lakh rupees, is also exempt from the obligation to deduct taxes.

Guidelines in Section 2's Subsection 2 call for the dismissal of the government. These regulations set out by the Parliament are mandatory and obligated to be followed. The Board is permitted to issue issues under Section 194R of the Act, but these issues must be brought up in front of each House of Congress and get Central approval before being issued.

[Notification No. 18 of 2022]


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