Income-tax Act, 1961Section 194R
- 10% on value of benefit or perquisite above ₹20,000 a year to a resident in business/profession
Applies to FY 2025-26 (AY 2026-27) and earlier years.
IT Act 1961 → 2025 / Section 194R
TDSSection 194R → Section 393
TDS on business perquisites and benefits (gifts, incentives to dealers, doctors)
Section 194R of the old Income-tax Act, 1961 · new section 393 under the Income-tax Act, 2025
New reference Section 393(1), Table Sl. No. 8(iv)
Income-tax Act, 2025Section 393(1), Table Sl. No. 8(iv)
- Section 393(1), Table Sl. No. 8(iv): 10% of value
- Threshold ₹20,000
Applies from tax year 2026-27 (from 1 April 2026).
What changed
Consolidated into section 393.
Practice notes
- Benefits in kind: the provider must ensure tax is paid before release.
Frequently asked
What is TDS on business perquisites under the new Income Tax Act 2025?
10% of the value of benefits above ₹20,000 a year, under section 393(1), Table Sl. No. 8(iv).
What is section 194R called in the new Income-tax Act, 2025?
Section 194R of the Income-tax Act, 1961 corresponds to Section 393(1), Table Sl. No. 8(iv) of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).
What changed in section 194R under the new Income Tax Act?
Consolidated into section 393.
Is section 194R still applicable for FY 2025-26?
Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 194R of the 1961 Act. Section 393(1), Table Sl. No. 8(iv) of the 2025 Act applies from tax year 2026-27.