As of July 1, 2022, the latest rule concerning the TDS payment will be in effect. Budget 2022-23 states that TDS will be added to the tax act under section 194R. Individuals who grant any benefit or perquisite to a resident exceeding Rs 20,000 a year must deduct a 10% TDS. The Finance Ministry will clarify any doubts about the applicability of the latest TDS on advantages and privileges, according to Kamlesh C Varshney, Joint Secretary in the Finance Ministry.
Updates
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- Through circular no 12/2022, the Income-tax department provided guidelines on removing the difficulties raised in section 194R.
By 1st July 2022, we hope to have an explanation
In Varshney’s view, people have received the benefits and privileges associated with their profession and business, yet no taxes were being paid. It is clear that leaks are occurring here. It is for this reason that the government created TDS section 194R, said the official.
It is difficult to understand the practical difficulties related to this new section, but the ministry will clarify the issues before July 1. Assocham’s industry chamber members clarified the same statement when he interacted with them.
Benefits and Perquisites
As per Varshney, Doctors gain income through free medicine samples and international flight tickets for their business or profession. The income tax return must include it. He said In addition, these advantages should not be taxed due to concerns that they aren’t being sold.
Doctors receive free samples of medicines from Pharma companies regardless of whether they are promoting sales. In the hands of the person receiving the promotion, the promotion would be taxable income. TDS must therefore be deducted, he said.
The TDS will be higher for AY 2021-22 if the IT return furnishing has been missed
If you are unable to provide your ITR for fiscal year 2020-21 (AY 2021-22), you have some bad news. As per the revised rules that are effective from 1st April 2022, higher TDS will be imposed on specific incomes. Performances ended on December 31, 2021.
Read more,
- Under Sections 206AB and 206CCA, TDS and TCS Are Increased
- How to submit your TDS payment online
- The following is information about online TDS payments: procedures, deadlines, and penalties
