Additional guidelines for removal of difficulties under 194R(2) of The Income Tax Act-1961

The Finance Act, 2022 had expanded the scope of transactions requiring tax deduction at source for benefits or perquisites provided to a resident recipient arising from his business or exercise
of a profession. In this regard, Section 194R was introduced in the Income-tax Act, 1961 (the Act), requiring tax withholding at the rate of 10 per cent on the value or aggregate of the value of such
benefits or perquisites provided or likely to be provided to the resident during the financial year in excess of Rs. 20,000 with effect from 1 July 2022.