TDS Section 194R — Benefits or perquisites from business/profession
FY 2025-26 · Rate 10% (on FMV of benefit)
What does this section cover?
TDS on value of any benefit/perquisite (in cash or in kind) provided to a resident from business or profession.
Why this section: Aimed at pharma freebies to doctors and influencer gifts — any benefit/perk > ₹20k/FY given in course of business attracts 10% TDS on FMV.
Key facts
- Threshold
- ₹20,000 per FY per recipient
- Applicable for
- FY 2025-26
- Who deducts
- Any person providing the benefit (business/profession)
- Paid to
- Resident recipient of the benefit
- Statutory source
- Section 194R, Income Tax Act
Common terms accountants use
If your description mentions any of these, Section 194R is likely the right answer. The matcher in this tool is a keyword scorer — not an AI classifier — so cross-check borderline cases against the official CBDT TDS rate chart.
Related TDS sections
Other sections in the same series or adjacent. Useful when narrowing down between similar payment categories.
Need a different section?
Describe the payment in plain English — “rent of plant”, “senior citizen interest”, “NRI dividend” — and the matcher will surface the right section.
Search TDS sections →Source: curated from the CBDT TDS rate chart. Dataset snapshot: 2025-04-01. Rates can change between Finance Acts and notifications — verify before deducting.