Deduction of tax on perquisite: providers must withhold tax before furnishing benefits to resident recipients.

Section 194R requires the person responsible for providing to a resident any benefit or perquisite arising from business or profession to ensure tax is deducted on the value or aggregate value of such benefit before providing it; where benefits are wholly or partly in kind and cash is insufficient, tax must be paid before release. The obligation excludes benefits whose annual aggregate value to a resident does not exceed twenty thousand rupees and excludes individuals or Hindu undivided families whose prior-year turnover or gross receipts fall below the specified business or profession thresholds. "Person responsible for providing" includes the provider and, for a company, the company including its principal officer.

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