Budget 2022: Levy of 10% TDS on Perquisites Exceeding Rs 25000

Budget 2022: Levy of 10% TDS on Perquisites Exceeding Rs 25000 To broaden and deepen the tax base, it is proposed to add a new section 194R to the Act by Budget 2022, which would require the person responsible for providing any benefit or perquisite to a resident, whether convertible into money or not, arising from such resident's carrying on of a business or exercising of a profession, to ensure that tax has been deducted in respect of such benefit or perquisite before providing such benefit or perquisite to such resident. You May Also Refer: Proposed changes in TDS Regime as per Budget 2022: TDS Rate Chart applicable for Financial Year 2022-23 If the value or aggregate value of the benefit or perquisite paid or projected to be paid to a resident during the financial year does not exceed twenty thousand rupees, no tax is to be deducted. Furthermore, the provisions of the said section shall not apply to an individual or a Hindu undivided family whose total sales, gross receipts, or turnover during the financial year immediately preceding the financial year in which such benefit or perquisite, as the case may be, does not exceed one crore rupees in case of business or fifty lakh rupees in case of the profession.