TDS on perquisites 194 R:CBDT clarifies One-Time Settlement of Bank Loans would not attract Tax,


Circular link:

https://www.incometaxindia.gov.in/communications/circular/circular-no-18-2022.pdf


 CBDT today has issued another circular No 18 dated 13th September , 2022 to further clarify issues arising on deduction of tax at source under newly inserted section 194-R in respect of benefits or perquisites provided to residents in cash or in kind in the course of business or profession.  Now bank and financial Institutions need not deduct tax at source in respect of benefits provided to its borrowers by waiver of loan or advance by way of one time settlement.

 

 Similarly a company in which public is substantially interested need not deduct tax at source while issuing bonus or right shares . The implication of this clarification will be that a company in which a public is not substantially interested will be required to deduct tax at source while issuing bonus/ right shares despite such receipt of bonus / right shares being not taxable in the hands of the shareholders. The reasoning given in this circular for exempting a company in which public is substantially interested from deduction of tax at source while issuing bonus / right shares equally applies to a private company in which public is not substantially interested .

Comments

Post a Comment

Popular posts from this blog

My CA Journey summary

  Chartered Accountancy (CA)  is one of the most popular   professional courses . It is one of the Toughest courses in the world. It requires an integration of intelligence, hard work , Patience, Determination and continuous dedication with non-stop efforts.  Many aspirants relinquish this challenging journey and replace their dreams with  some other career options . My CA journey mentioned  below in  short summary: If I can become a Chartered Accountant anyone CAN. I Came from a village background with Telugu medium upto graduation. After graduating, I was confused as to what I should do. My Big Brother wanted me to pursue CA so that I have a degree, which would help me get a basic job and the required financial support in the future. That is when I decided to study further and become a Chartered Accountant. Initial period of my CA journey I was faced with a little bit of a medium issue, however I was able to clear the 1st 2 stages of CA early by spen...
Read more

SAP T codes

01.03.2023  SAP T-codes SAP FICO -Knowledge and Experience Sharing. Lets have Quick look into T codes and Table codes . SE16 provides real-time data access to various SAP tables, including: 1. ACDOCA (Universal Journal Entry Table) 2. BKPF (Accounting Document Header) 3. BSEG (Accounting Document Segment) 4. SKA1 (G/L Account Master) 5. LFA1 (Vendor Master) 6. KNA1 (Customer Master)  T-codes and table codes for Master Data and key tables in SAP: Vendor Master Data: T-codes: 1. XK01 - Create Vendor (Centrally) 2. XK02 - Change Vendor (Centrally) 3. XK03 - Display Vendor (Centrally) 4. FK01 - Create Vendor (Purchasing) 5. FK02 - Change Vendor (Purchasing) 6. FK03 - Display Vendor (Purchasing) Tables: 1. LFA1 - Vendor Master (General Data) 2. LFB1 - Vendor Master (Company Code Data) 3. LFB5 - Vendor Master (Purchasing Data) 4. LFM1 - Vendor Master (Material Data) Customer Master Data: T-codes: 1. XD01 - Create Customer (Centrally) 2. XD02 - Change Customer (Centrally) 3. XD03 - D...
Read more

Accounts Receivable Fundamentals

Comprehensive guide to prepare for an Accounts Receivable (AR) interview: Accounts Receivable Fundamentals 1. Definition: Accounts Receivable represents amounts owed to a company by its customers. 2. Objective: Efficiently manage customer payments and minimize bad debt. 3. Key Components: Invoice Generation, Payment Processing, Credit Management and Collections. Accounts Receivable Process 1. Invoice Generation: Accurately generating invoices. 2. Payment Processing: Collecting and processing customer payments. 3. Credit Management: Evaluating customer creditworthiness. 4. Collections: Managing overdue accounts. 5. Reconciliation: Verifying account balances. Key Accounts Receivable Concepts 1. Credit Policy: Establishing credit terms. 2. Payment Terms: Defining payment schedules. 3. Accounts Receivable Turnover: Measuring AR efficiency. 4. Days Sales Outstanding (DSO): Average days to collect payments. 5. Bad Debt Expense: Accounting for uncollectible amounts. Accounts Receivable Best P...
Read more