The Central Board of Direct Taxes (CBDT) said that the payer/deductor is not required to conduct taxation checks on the amount in the hands of the payee.
New Delhi. The Income Tax Department on Thursday issued guidelines regarding the use of the new provision of Tax Deduction at Source (TDS) in respect of profits received in any business or profession. The department said that such benefits can be either in cash or kind or partly in both these forms.
The Central Board of Direct Taxes (CBDT) also said that the payer/deductor is not required to conduct taxation checks on the amount in the hands of the payee. Also the nature of asset given as additional benefit is not relevant. Even capital assets given as profits are covered under section 194R.
In addition, section ‘194R’ shall also apply to sellers who offer incentives other than rebates or rebates. This discount can be in the form of cash or items like car, TV, computer, gold coin, mobile phone, free ticket etc. In the budget of the financial year 2022-23, a provision of TDS on such income was proposed to prevent loss of tax revenue.
CBDT’s new guideline on Vivad se Vishwas scheme
It is worth noting that the Central Government had launched the Vivad Se Vishwas scheme two years ago to resolve disputes related to direct tax. Also, the Mutual Agreement Procedure (MAP) scheme was introduced to settle cross-border tax disputes. Now with some changes in it, CBDT has issued a new guideline. The CBDT has clarified in its guideline how the tax officers and businessmen will have to approach under both the schemes.
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