- · Section 194R does not apply to employees who receive benefits from their employers. Section 192 will apply to them.
- When the recipient is a non-resident, the tax will be deducted under Section 195.
- · When there is no business relationship, this section will not apply.
- TDS should not be deducted when the total value involved does not exceed Rs.20,000
- · This provision is not applicable to Individuals and HUFs with income from business not exceeding Rs.1 Cr. and profession not exceeding Rs.50 lakhs.
- · Discounts and rebates will not be reduced from the sale value while calculating the value of benefits
- GST would not be included in the valuation of benefits or perquisites
- ·Free samples like cars, mobile phones, cosmetics, etc., are provided for advertisement or promotion; if such a product is returned after being used for the purpose of rendering, then section 194R is not applicable; however, if such products are retained, then they shall be considered perquisites, and section 194R is applicable.