Sec.194R-deduction of tax on benefit/perquisite pertaining to Business/Profession
Why the section was introduced: Ministry of finance noticed the Revenue Leakage in providing Benefits/perquisites. Rate: 10% Threshold Limit: Rs 20,000[i.e., deduct only when exceeds 20000] Who has to deduct(deductor): Other than Individual/HUFIndividual/HUF whose sales/gross receipts/TO > 1cr (Business) or >50 Lakhs (Profession) in the immediately preceding financial year. For whom to deduct(deductee): Who is getting the benefit/perquisite (applicable only for Resident Assesse) When to deduct: Before releasing benefit/perquisite Other Points: Benefit/Perquisite can be in the form of cash or kind or part thereof.Sec. is applicable irrespective of whether the benefit/perquisite is contractual/gratuitousWaiver of Loan is not benefit or perquisitePurchase of shares as an investment with lock in period of holding, for consideration less than Market value – Not a benefit/perquisite Vehicle provided to director of a company for free…