The Central Board of Direct Taxes (CBDT) has issued an additional set of guidelines vide Circular no 18 of 2022, exercising the power conferred as per sub-section 2 to Section 194R of the Income-tax Act, 1961 (the Act). The additional guidelines aim to provide clarity on earlier guidelines issued by CBDT vide Circular no. 12 of 2022 dated 16 June 2022 and remove the ambiguities and difficulties faced by the taxpayers on the implementation of the Section. Furthermore, the said Circular also clarifies that the additional guidelines don’t impact the taxability of the income in the hands of the recipient of such benefit/perquisite.
