Section 194R:
Deduction of tax in case any benefit or perquisite is provided and aggregate value of such benefit/perquisite exceeds Rs. 20,000. Benefit or perquisite should be arising from business or the exercise of a profession by such resident.
Note: This statement is saying that a benefit (such as a financial gain or special privilege) should only be given to someone if it is a result of their business or professional activities. In other words, the benefit should be directly related to the work that the individual is doing, and not be given as a form of personal gain or favoritism. This section includes tour packages, free samples, gifts, gift vouchers/coupons or incentives.
TDS Rate = 10%
CAclubindia
