In order to remove inconsistency in provisions, it is proposed to amend section 194-IA of the Act to provide that in case of transfer of an immovable property (other than agricultural land), TDS is to be deducted at the rate of 1% of such sum paid or credited to the resident or the stamp duty value of such property, whichever is higher.
In case the consideration paid for the transfer of immovable property and the stamp duty value of such property are both less than fifty lakh rupees, then no tax is to be deducted under section 194-IA. (LIMIT: 50,00,000 Rupees)
2.TDS ON BENEFIT OR PERQUISITE OF A BUSINESS OR PROFESSION SECTION 194R
To widen and deepen the tax base, it is proposed to insert a new section 194R to the Act to provide that the person responsible for providing to a resident, any benefit or perquisite, whether convertible into money or not, arising from carrying out of a business or exercising of a profession by such resident, shall, before providing such benefit or perquisite, as the case may be, to such resident, ensure that tax has been deducted in respect of such benefit or perquisite at the rate of 10% aggregate of value of such benefit or perquisite.
No tax is to be deducted if the value or aggregate value of the benefit or perquisite paid or likely to be paid to a resident does not exceed twenty thousand rupees during the financial year. (LIMIT: 20,000 Rupees)
Further, the provisions of the said section shall not apply to an individual or a Hindu undivided family, whose total sales, gross receipts or turnover does not exceed one crore rupees in case of business or fifty lakh rupees in case of profession during the financial year immediately preceding the financial year in which such benefit or perquisite, as the case may be, is provided.
3. TDS ON VIRTUAL DIGITAL ASSETS OR CRYPTO CURRENCY SECTION 194S
It is proposed to insert section 194S to the Act to provide for deduction of tax on payment for the transfer of virtual digital asset to a resident at the rate of 1% of such sum. Whether wholly in kind or in exchange of another virtual digital asset or,partly in cash and partly in kind.
The person before making the payment shall ensure that the tax has been paid in respect of such consideration.