3 min read.Updated: 24 Jun 2022, 06:29 AM ISTRavi Mahajan
The value of benefits/perquisites should be based on FMV, subject to exceptions
This year’s Union budget proposed a new TDS, or tax deducted at source, obligation through section 194R of the Income-tax (I-T) Act 1961, with effect from 1 July. This section requires deducting tax at 10% at the source by any person responsible for providing any benefit/perquisite to a resident arising from a business or profession carried out by such resident, subject to certain conditions. The Central Board of Direct Taxes (CBDT) recently issued guidelines aiming to clear doubts regarding the implementation of Section 194R but it has raised other questions.