TDS 194R – TDS on Perks like Travel vouchers, Gold Coins, Cars, Freebies
Do you sometimes give Gifts to your Customers ?
on Diwali ?
on Marriage Like Events ?
Good, now please remember to take their PAN number, and take TDS also from them if possible, or pay from your own pocket this TDS and deposit it by 7th of next month.
One more thing, if you think, you will hide it ? …… In that case the expense itself will be disallowed. for non deduction of TDS
This new section 194R requires deduction of tax at source @ 10%, by any person, providing any benefit or perquisite, exceeding Rs. 20,000 in value, in a year, to a resident, arising from the business or profession of such resident and such benefit or perquisite is in the nature of income falling under section 28(iv) of the Income tax Act.
Exemption Limit
Yes, Rs 20,000 per financial year.
So, upto Rs 19999 per year, including all instalments, is ok
Disallowance Provision – IT Act
40(a)(ia) : In that case, 30% will be Disallowed.
Section 40(a) (ia)
