SR.NO.

Particulars

Conditions

1.

Applicable to

-Audited Individual Firm, Partnership Firm, Company

2.

Rate of TDS

10% of Cash Payment or Value of any Kind

3.

Who has to Deduct Tax

If any person provides any benefit or perquisite, or gifts to any resident person without any consideration pertaining to Business/profession.

4.

Threshold Limit

20000/- (Benefit, gift, perquisite etc. more than twenty thousand)

5.

Type of Benefit/perquisite

• When a person gives incentives in cash or kind such as TV, car, computers, gold coin, mobile phone, etc.

• When a person sponsors a trip for the recipient and his/her relatives upon achieving certain targets

• When a person provides a free ticket for an event

• When a person gives medicine samples free to a medical practitioner

• Provides any free gift provided to social media influencers to promote it on the social media as a part of business promotion

• Expenditure incurred for family members accompanying the person attending the business conference

• Expense attributable to leisure trip or leisure component, even if it is incidental to the dealer/business conference.

• Expenditure on participants of dealer/business conference for days which are on account of prior stay or overstay beyond the dates of such conference.

Exception

• Non-Audited Individual or HUF whose turnover is less than 1 cr (Professional Receipt below 50 lakh)

• sales discount, cash discount or any rebate, warranty claim given on sold goods

Valuation of perquisite

• Benefit in Cash:  Amount of cash

• Benefit in kind: Fair market value of such gifts or benefits, such value should be before adding GST on such value.