Income to be declared under which for perquisites u/s 194R from Co.

[Venkatesh Dhongadi]

A dealer went to foreign trip on scheme purchases from company. And company has done TDS u/s 194R. Books of accounts are not maintained and ITR is required to filed u/s 44AD of Income tax act, 1961. Perquisites received from company (Foreign trip) to be shown under which head of Income - Business Income or Other Sources?

AI Summary

Clarification on Foreign Trip Classification: Business Income Under Section 28 or Other Sources? Consult Tax Expert. A query was raised regarding the classification of a foreign trip received as a perquisite under Section 194R of the Income Tax Act. The individual, who does not maintain books of accounts, must file an ITR under Section 44AD. The question was whether to declare the trip as business income or under other sources. The response suggested that if the trip is related to business activities, it should be classified as business income under Section 28. However, if the trip is personal, it might be considered under other sources. Consulting a tax professional was recommended for tailored advice.