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  • 27 June 2022

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    Ankit Kumar
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    This document discusses the new TDS provision under section 194R that will come into effect on July 1st, 2022. It will apply to all non-individual and HUF persons with a turnover over Rs. 1 crore or professional income over Rs. 50 lacs. The rate of TDS will be 10% on any benefit or perquisite exceeding Rs. 20,000 provided to a resident arising from their business or profession. Some examples are given of who will be affected, such as pharmaceutical companies providing free medicines to doctors, gifts to business professionals, tours/air tickets/hotels, and quantity discounts given by manufacturers.

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    This document discusses the new TDS provision under section 194R that will come into effect on July 1st, 2022. It will apply to all non-individual and HUF persons with a turnover over Rs. 1 crore or professional income over Rs. 50 lacs. The rate of TDS will be 10% on any benefit or perquisite exceeding Rs. 20,000 provided to a resident arising from their business or profession. Some examples are given of who will be affected, such as pharmaceutical companies providing free medicines to doctors, gifts to business professionals, tours/air tickets/hotels, and quantity discounts given by manufacturers.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    4 views1 page

    27 June 2022

    Uploaded by

    Ankit Kumar
    This document discusses the new TDS provision under section 194R that will come into effect on July 1st, 2022. It will apply to all non-individual and HUF persons with a turnover over Rs. 1 crore or professional income over Rs. 50 lacs. The rate of TDS will be 10% on any benefit or perquisite exceeding Rs. 20,000 provided to a resident arising from their business or profession. Some examples are given of who will be affected, such as pharmaceutical companies providing free medicines to doctors, gifts to business professionals, tours/air tickets/hotels, and quantity discounts given by manufacturers.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    27 June 2022 ANKIT K DHIMAN & ASSOCIATES

    ANKIT K DHIMAN
    CA, BCOM(HONS)
    +91-9915180676

    194R wef
    TDS UNDER

    1st July
    SECTION 194R
    Is it really promoting

    2022
    EODB by Govt?

    WHAT 194R SAYS?


    Applicability:

    1. To all persons other than Individual and HUF

    2. To Individual and HUF having turnover / sales more than 1 crore or Rs. 50 Lacs in case

    of professional in F.Y. 2021-22

    Rate:

    TDS @ 10%, by any person, providing any benefit or perquisite, exceeding Rs. 20,000 in

    value, in a financial year, to a resident, arising from the business or profession of such

    resident and such benefit or perquisite is in the nature of income from profits and gains

    from Business or Profession.

    WHO WILL BE

    AFFECTED BY THIS?

    1. Pharmaceutical Manufacturer/ Supplier who supplies free medicines / perks to

    doctors.
    2. Gifting Gold coins etc to business professionals or others in business.
    3. Domestic/Foreign Tours including Air Tickets, Hotels etc.
    4. Quantity Discount given by Manufacturer/Trader will also come under ambit of

    this and will have to deduct TDS accordingly.

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