TDS limit and applicability

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This discussion clarifies the TDS implications for gifts provided by a private limited trading company to its owners for business purposes. The advice given is that such expenses can be booked under sales and marketing. Crucially, TDS will apply at a rate of 10% if the total monetary value of gifts or perquisites to a recipient exceeds INR 20,000 in a financial year, as per Section 194R of the Income Tax Act.

Shreegovind

Shreegovind (Querist)

11 January 2024 Dear Sir,

I am working private limited company and our company is trader work, hence for business running purposes our owner issue gift like watch, ornament ect. and our legal adviser suggested expenses book under sales & marketing expenses,
please guide us if we booked under sale & marketing "TDS will not applicable or not" yes kindly suggest %.

RAJA P M

RAJA P M (Expert)

12 January 2024 TDS applicable if value exceeds...

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

14 January 2024 As per Section 194R, Businesses or professionals should deduct TDS @10% if the monetary value of such gift or perquisites exceeds INR 20,000 during the financial year of each recipient.

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