CBDT issues guidelines on section 194R to address various concerns on its implementation
Brief Background and facts of the case
• Finance Act, 2022 has introduced section 194R in the Income-tax Act, 1961 (‘the Act’) with effect from 01 July 2022 which provides for deduction of tax at source (‘TDS’) @ 10%. Such tax is required to be deducted by any person responsible for providing to a resident any benefit or perquisite whether convertible into money or not arising from business or the exercise of profession by such resident subject to certain conditions.
• In pursuance of powers conferred with CBDT under sub section (2) of section 194R of the Act, CBDT has issued detailed guidelines on 14 June 2022 vide circular dated 12 of 2022 (‘CBDT Circular’) clarifying various aspects on implementation of TDS provisions under section 194R of the Act.
