Income Tax Guidelines: Income Tax Department has issued guidelines regarding new TDS provision. The department said that such benefits can be either in cash or kind or partly in both these forms.
Income Tax Guidelines: The Income Tax Department on Thursday issued guidelines regarding the use of the new provision of Tax Deduction at Source (TDS) in respect of profits received in any business or profession . The department said that such benefits can be either in cash or kind or partly in both these forms.
The Central Board of Direct Taxes (CBDT) also said that the payer/deductor is not required to conduct taxation checks on the amount in the hands of the payee. Also the nature of asset given as additional benefit is not relevant. Even capital assets given as profit are covered under section 194R.
In addition, section ‘194R’ shall also apply to sellers who offer incentives other than rebates or rebates. This discount can be in the form of cash or items like car, TV, computer, gold coin, mobile phone, free ticket etc.
The provision of Tax Deduction at Source (TDS) on such income was proposed to prevent loss of tax revenue in the budget for the financial year 2022-23.
