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Specified benefit/perquisite 4.1 Specified benefit/perquisite: Benefit or perquisite which if provided triggers provider’s (deductor’s) liability to deduct TDS under section 194R In order to trigger liability of deductor (benefit/perquisite provider) under section 194R to ensure that tax has been deducted, it is necessary that specified benefit/perquisite should have been provided by him to specified deductee. Benefit/perquisite shall be a specified benefit/perquisite only if it satisfies the following conditions: (a) It is any benefit or perquisite; (b) It may or may not be convertible into money; (c) It (benefit or perquisite) may be in cash or kind or partly in cash and partly in kind. [Explanation 2 to Section 194R inserted by the Finance Act, 2023 with effect from 01-04-2023] (d) It should arise from the carrying on of business or exercise of profession by the specified deductee (resident recipient satisfying certain conditions) ; and (e) Value of such benefit or perquisite or the aggregate value of such benefits/perquisites provided during the financial year should not exceed ` 20,000. Section 194R provides for deduction of tax from “any benefit or perquisite…”. Section 194R does not define the words “benefit” and “perquisite”. Nor are these words defined in section 28(iv). These words are also used in sub-clauses (iv) and (iva) of clause (24) of section 2 but are not defined by the said sub-clauses also. 22