A Ltd is paying yoga and destressing or healing expenses for the benefits of their employees for amount of 39000. in which A Ltd is deducting 50% of the amount from employees salaries.
Pls suggest in which section tds should be deducted and on which amount??
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Tds deduction on payment for employee benefits
Replies (1)
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Do not use Section 194R: This section is for business-to-business or business-to-professional relationships, not for employer-employee relationships.
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Use Section 192: Include the portion of the expenses paid by the company (the 50% not recovered from the employee) in the employee's taxable salary.
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TDS Deduction: Deduct TDS on the total salary (including these perquisites) at the applicable slab rates under Section 192.
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Documentation: Maintain clear records of the payments made to service providers and the subsequent recovery (50%) from the employees to justify the valuation of the perquisite if audited.
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