What is Consequences of not complying with Section 194R (TDS on benefits)?
Nexa Consultancy | Startup & Finance Glossary
Section 194R requires deduction of TDS at 10% on any benefit or perquisite provided to a resident arising from their business or profession, if the value exceeds ₹20,000 in a year. Non-compliance leads to disallowance of the expense and penalties.
Startup Example: A company sends a social media influencer on an all-expenses-paid trip worth ₹1 Lakh for promotion. It must deduct TDS of ₹10,000 on the value of this benefit.
We provide guidance on complex TDS provisions like Section 194R.