Section 194R

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Shalet Babu (Querist)
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10 July 2025 Is it mandatory that the recipient or payee with respect to Section 194R should either be carrying out a business or is exercising a profession? Or can the payee be any person who is a resident?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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10 July 2025 Section 194R of the Income-tax Act, 1961 mandates that any person providing a benefit or perquisite (whether in cash or in kind, or partly in both) arising from business or the exercise of a profession to a resident recipient, must deduct tax at source (TDS) at the rate of 10% before providing such benefit or perquisite.
It clearly states the benefit arising from business or profession.

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