TABLE OF CONTENT

Navigating the ever-evolving landscape of Indian taxation has become increasingly complex in recent years. As part of its ongoing efforts to enhance tax compliance and expand the tax base, the government has introduced several key reforms.

Among these, Section 194R of the Income-tax Act, 1961 stands out as a significant development that demands attention from businesses and professionals alike.

Enacted to address the growing concern over unreported benefits and perquisites in business transactions, Section 194R introduces a new dimension to the concept of Tax Deducted at Source (TDS). This provision specifically targets non-monetary benefits arising from business or professional activities, aiming to bring them under the tax net more effectively.

The implementation of 194R TDS has far-reaching implications for a wide range of stakeholders, including corporations, small businesses, freelancers, and even social media influencers. It represents a paradigm shift in how non-cash benefits are perceived and taxed within the Indian financial ecosystem.

Whether you're a financial professional seeking to ensure compliance for your organisation, a business owner trying to understand your new obligations, or an individual curious about how this might affect your income, this guide provides the essential knowledge you need.

By breaking down complex legal jargon into accessible language, we aim to equip you with a thorough understanding of Section 194R and its practical implications.

As we navigate through the nuances of this new provision, we'll explore real-world scenarios, expert opinions, and best practices to help you not just comply with the law, but also optimise your tax strategy in light of these changes.

Understanding 194R TDS: An Overview

Section 194R was introduced in the Union Budget 2022 and came into effect from July 1, 2022. The primary objective of this section is to bring under the tax net various benefits and perquisites provided by businesses to their customers, dealers, or other stakeholders.

These benefits, which were often not reported as income by the recipients, are now subject to TDS, ensuring better tax compliance and reducing tax evasion.

Key Features of Section 194R of the Income Tax Act:

  1. Applicability :

    2. The section applies to any person responsible for providing benefits or perquisites to a resident, arising from business or profession.

  2. TDS Rate :

    3. 194R TDS is to be deducted at a rate of 10% of the value of the benefit or perquisite.

  3. Threshold :

    4. TDS is applicable only if the aggregate value of benefits or perquisites exceeds ₹20,000 in a financial year.

  4. Nature of Benefits :

    5. The provision covers benefits or perquisites whether in cash, kind, or partly in cash and partly in kind.

  5. Effective Date :

    6. The 194R TDS section is effective from July 1, 2022.

Section 194R of the Income-tax Act, marks a significant shift in how non-monetary benefits in business transactions are taxed in India. This provision mandates the deduction of Tax at Source (TDS) on benefits or perquisites arising from business or professional activities, aiming to capture a wider range of transactions within the tax net.

Scope and Coverage of Section 194R

The scope of Section 194R is quite broad and covers various aspects of benefits and perquisites provided in the course of business or profession. Here's a detailed look at what falls under its purview:

  1. Types of Benefits Covered:

    • Cash benefits
    • Benefits in kind
    • Combination of cash and kind


  2. Nature of Benefits:

    • The benefit or perquisite can be revenue in nature or capital in nature.
    • It can include tangible assets like cars, electronic devices, or intangible benefits like sponsored trips.


  3. Recipient's Taxability:

    • The deductor is not required to check whether the benefit is taxable in the recipient's hands.
    • TDS is applicable regardless of whether the amount itself is taxable or not.


  4. Applicability to Capital Assets:

    • The 194R TDS provision applies even when the benefit provided is a capital asset, such as land or buildings.


  5. Exclusions:

    • Sales discounts, cash discounts, and rebates allowed to customers are not subject to TDS under Section 194R.
    • Benefits arising from personal relationships (not connected to business or profession) are excluded.

Also Read: A Guide to Tax Saving Under Section 10 (10D) of Income Tax

Valuation of Benefits and Perquisites

One of the critical aspects of implementing Section 194R is the correct valuation of benefits or perquisites. The Central Board of Direct Taxes (CBDT) has provided guidelines for valuation:

  1. Fair Market Value (FMV) :

    2. Generally, the valuation should be based on the FMV of the benefit or perquisite.

  2. Purchase Price:

    3. If the provider has purchased the benefit or perquisite, the purchase price shall be considered as the value for TDS purposes.

  3. Manufacturer's Price:

    4. If the provider manufactures the items given as benefits, the price charged to regular customers shall be taken as the value.

  4. GST Exclusion:

    5. Goods and Services Tax (GST) is not to be included in the valuation for TDS purposes.

  5. Special Cases:

    6. For sponsored trips, the actual cost incurred by the sponsor should be considered. For free samples, the FMV or the price charged to other customers should be taken into account.

Specific Scenarios and Their Treatment

  1. Social Media Influencers:

    2. If products given to influencers are returned, there's no benefit, hence no TDS.
    If products are retained, it's considered a benefit subject to 194R TDS.

  2. Reimbursement of Out-of-Pocket Expenses:

    3. If the liability is of the person carrying on business but met by another person, it's considered a benefit.
    No TDS if travel bills are in the client's name, paid by the consultant, and reimbursed by the client.

  3. Dealers' Conferences:

    4. Expenditure on dealer/business conferences for product launches, obtaining orders, or training is not considered a benefit. However, expenses for leisure trips, family members, or overstay are subject to TDS.

  4. Sales Incentives:

    5. Cash incentives, cars, TVs, computers, gold coins, mobile phones given as incentives are subject to TDS.

  5. Medical Samples to Doctors:

    6. Free medical samples provided to doctors are considered benefits under Section 194R.

Compliance and Procedural Aspects

  1. Time of Deduction:

    2. TDS should be deducted before providing the benefit or perquisite. For benefits in kind, the provider must ensure TDS is paid before releasing the benefit.

  2. TDS Return Filing:

    3. The deductor must file quarterly TDS returns in Form 26Q.

  3. TDS Certificate:

    4. The deductor is required to provide a TDS certificate to the deductee in Form 16A every quarter.

  4. Threshold Calculation:

    5. While calculating the ₹20,000 threshold, include benefits provided from April 1, 2022, but TDS is applicable only on benefits provided from July 1, 2022.

  5. Grossing Up:

    6. In cases where the benefit is wholly in kind, the provider may gross up the value to account for TDS.

Challenges in Implementation and Possible Solutions

While Section 194R aims to bring more transparency to the tax system, its implementation poses several challenges:

  1. Valuation of Non-Monetary Benefits:

    2. Challenge: Determining the fair market value of non-monetary benefits can be subjective and complex. Solution: Develop clear internal guidelines for valuation based on CBDT circulars and seek professional valuation services for high-value items.

  2. Tracking Cumulative Benefits:

    3. Challenge: Keeping track of all benefits provided to each recipient throughout the year. Solution: Implement a robust digital tracking system that automatically calculates cumulative benefits and flags when the threshold is crossed.

  3. Cash Flow Management:

    4. Challenge: Paying TDS on non-monetary benefits can impact cash flow. Solution: Plan for TDS payments in advance and consider grossing up the value of benefits to account for TDS.

  4. Recipient Awareness:

    5. Challenge: Recipients may not be aware of the TDS implications on benefits they receive. Solution: Educate recipients about 194R TDS and provide clear communication when benefits are subject to TDS.

  5. Compliance Burden on Small Businesses:

    6. Challenge: Small businesses may find it difficult to comply with the additional requirements. Solution: Simplify processes for small businesses and provide clear, easy-to-follow guidelines.

Also Read: Section 234B & 234C: Understanding Interest and Penalties on Advance Tax and Its Calculation

Future Outlook and Potential Amendments

As with any new tax provision, Section 194R may undergo refinements and amendments based on practical challenges and stakeholder feedback. Some potential areas for future consideration include:

  1. Threshold Revision:

    2. The ₹20,000 threshold may be revised upwards to reduce compliance burden on small transactions.

  2. Sector-Specific Guidelines:

    3. More detailed guidelines may be issued for specific sectors like pharmaceuticals, automobiles, and e-commerce.

  3. Digital Platforms:

    4. Clarifications on how 194R TDS applies to benefits provided through digital platforms and online marketplaces.

  4. Integration with GST:

    5. Potential integration of Section 194R compliance with GST returns to streamline reporting.

  5. Expanded Exemptions:

    6. The list of exempted entities or transactions may be expanded based on practical considerations.

Exemptions and Special Cases

  1. Small Businesses:

    2. 194R TDS is not applicable to individuals or HUFs whose turnover doesn't exceed ₹1 crore for business or ₹50 lakhs for profession.

  2. Government Entities:

    3. Benefits provided to government entities not carrying on business or profession are exempt.

  3. International Organisations:

    4. Certain international organisations, embassies, and UN bodies are exempt from Section 194R.

  4. Employee Benefits:

    5. Benefits provided by employers to employees are taxed under Section 192, not Section 194R .

Impact on Different Sectors

  1. Pharmaceutical Industry:

    2. Free samples to doctors, sponsorships for conferences are now subject to TDS.

  2. Automobile Sector:

    3. Incentives to dealers in the form of cars or other benefits are covered.

  3. FMCG Companies:

    4. Promotional schemes and dealer incentives need careful consideration.

  4. Service Sector:

    5. Reimbursements and client entertainment expenses may fall under this provision.

Best Practices for Compliance

  1. Establish Clear Policies:

    2. Develop comprehensive policies for providing benefits and perquisites.

  2. Implement Tracking Systems:

    3. Use robust systems to track and value benefits provided.

  3. Regular Training:

    4. Conduct regular training for staff involved in providing benefits or handling TDS.

  4. Documentation:

    5. Maintain detailed records of all benefits provided and TDS deducted.

  5. Periodic Reviews:

    6. Conduct periodic reviews to ensure compliance with Section 194R.

Case Studies: Practical Application of Section 194R

To better understand how Section 194R applies in real-world scenarios, let's examine a few case studies:

Case Study 1: Pharmaceutical Company

Scenario: A pharmaceutical company provides free medical samples worth ₹25,000 to a doctor over a financial year.

Application of 194R TDS:

  • The medical samples are considered a benefit arising from business.
  • The value exceeds the ₹20,000 threshold.
  • The company must deduct 10% TDS (₹2,500) before providing the samples.
  • If the samples are provided in kind, the company must ensure the TDS is paid before releasing the samples.

Case Study 2: Automobile Dealer Incentives

Scenario: A car manufacturer provides a free car worth ₹5,00,000 to a top-performing dealer as an incentive.

Application of Section 194R:

  • The car is a benefit arising from business relationship.
  • The value significantly exceeds the threshold.
  • The manufacturer must deduct ₹50,000 (10% of ₹5,00,000) as TDS.
  • The manufacturer needs to ensure the TDS is paid before handing over the car to the dealer.

Case Study 3: Social Media Influencer Collaboration

Scenario: A fashion brand provides clothes and accessories worth ₹30,000 to a social media influencer for promotion.

Application of 194R TDS:
  • If the influencer retains the items, it's considered a benefit subject to TDS.
  • The brand must deduct ₹3,000 (10% of ₹30,000) as TDS.
  • If the influencer returns the items after the promotion, no TDS is applicable.

These case studies illustrate the diverse situations where Section 194R of the Income Tax Act comes into play and how businesses need to handle TDS in each scenario.

Also Read: Maximizing Tax Savings: Understanding Sections 80C, 80D, and 80CCD

Conclusion: Navigating the 194R TDS Landscape

The introduction of Section 194R of the Income Tax Act represents a significant shift in how benefits and perquisites are taxed in India. While it presents challenges, it also offers an opportunity for businesses to streamline their processes and ensure better tax compliance.

Key takeaways for effective compliance with Section 194R include:
  • Stay informed about the latest guidelines and clarifications issued by the tax authorities.
  • Implement robust systems for tracking and valuing benefits provided to recipients.
  • Educate staff and recipients about the implications of 194R TDS .
  • Seek professional advice for complex scenarios or high-value transactions.
  • Regularly review and update internal policies to ensure ongoing compliance.

As the tax landscape continues to evolve, businesses that adapt quickly and efficiently to new provisions like Section 194R will be better positioned to navigate the complexities of the Indian tax system. By understanding and correctly implementing the 194R TDS provisions, businesses can contribute to a more transparent and compliant tax ecosystem, ultimately benefiting the overall economy.

Remember, while this guide provides a comprehensive overview of Section 194R, tax laws are complex and subject to interpretation. It's always advisable to consult with a qualified tax professional for specific situations and the latest updates on 194R TDS regulations. Stay informed, stay compliant, and contribute to building a robust and transparent tax system in India.

Can you save more Tax??
Plan here

FAQS – FREQUENTLY ASKED QUESTIONS

  • Is 194R TDS applicable to non-residents ?

    No, Section 194R is applicable only to benefits or perquisites provided to residents. For non-residents, TDS provisions under Section 195 may apply.

  • How is the threshold of ₹20,000 calculated ?

    The threshold is calculated on an aggregate basis for all benefits provided to a recipient during a financial year. It includes benefits provided from April 1, 2022, but TDS is applicable only on benefits provided from July 1, 2022.

  • Are gifts received on special occasions like marriage subject to 194R TDS ?

    No, gifts received on occasions like marriage or festivals are not subject to TDS under Section 194R. This section specifically applies to benefits arising from business or professional relationships.

  • How should TDS be deducted on non-monetary benefits ?

    For non-monetary benefits, the provider should ensure that TDS is paid before releasing the benefit. This can be done by either collecting the TDS amount from the recipient or grossing up the value of the benefit.

  • Is Section 194R applicable to reimbursements ?

    It depends on the nature of reimbursement. If the reimbursement is for expenses that were primarily the liability of the person making the payment, it may be considered a benefit subject to TDS.

  • How does Section 194R impact the hospitality industry ?

    The hospitality industry needs to be cautious about complimentary services provided to guests, travel agents, or corporate clients. These may be considered benefits subject to TDS if they exceed the threshold.

  • Are educational institutions affected by Section 194R ?

    Educational institutions providing scholarships or other benefits to students based on merit or need are generally not affected, as these are not arising from business or profession.

  • How does 194R TDS apply to loyalty programs ?

    Loyalty points or rewards provided under customer loyalty programs may be subject to TDS if they exceed the threshold and are seen as arising from business.

  • Can the recipient claim credit for TDS deducted under Section 194R ?

    Yes, the recipient can claim credit for TDS deducted under Section 194R in their income tax return, provided it is reflected in their Form 26AS.

  • Is there any penalty for non-compliance with Section 194R ?

    Yes, failure to deduct or pay TDS under Section 194R can result in penalties under Section 271C and 271CA of the Income Tax Act, which can be quite substantial.

 

DISCLAIMER

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.

For Expert Advice on the Right Money Solutions, leave your details below...

For Expert Advice on the Right Money Solutions, leave your details below...

Enter OTP
Resend OTP 02:00

I agree to the Terms & Conditions

*All fields are mandatory.

Terms and Conditions
Terms and Conditions for use of www.adityabirlacapital.com

About Aditya Birla Capital

Aditya Birla Capital (‘the Brand’) is the single brand for financial services business of Aditya Birla Group. The trade logo “Aditya Birla Capital” and the URL www.adityabirlacapital.com is owned by Aditya Birla Management Corporation Private Limited (trade mark owner) and the same is used herein under the License by Aditya Birla Capital Limited (ABCL) and its subsidiary companies (collectively hereinafter referred to as “ABC Companies”).  Aditya Birla Capital Limited is the holding company of all financial services businesses.  

www.adityabirlacapital.com (“the Website”) is maintained and run by Aditya Birla Financial Shared Services Limited (having its registered office at 18th Floor, One India bulls Centre, Tower 1, Jupiter Mills Compound, Senapati Bapat Marg, Elphinstone Road, Mumbai- 400013). The information available on www.adityabirlacapital.com relates either to ABCL and/ or ABC Companies under all associated web pages/ sites which are linked to www.adityabirlacapital.com (“hereinafter referred as the Website”).

All of the ABC Companies have their own separate legal identities and webpages (details about which are embedded in their respective web pages/sites) but in this Website they may sometimes use "Group", "we" or "us" when we refer to ABC Companies in general or where no useful purpose is served by identifying any particular ABCL Affiliate.

Terms and Conditions and Acceptance

Please read these Terms and Conditions (“Terms of Use”) carefully. Your Acceptance of the Terms of Use contained herein constitutes the Agreement for the Purpose as defined hereunder. The Acceptance of Terms of Use will be between You and Aditya Birla Financial Shared Services Limited (hereinafter referred as “Facilities Provider”) which is facilitating provision of the services, other than those which are otherwise specifically provided by each of the ABC Companies on their respective web pages / sites to you.

By accessing and using this Website you have confirmed that you have read, understood and bound yourself by these Terms of Use. These Terms of Use shall apply to the access and use of the Website and all associated web pages/ sites which are linked with www.adityabirlacapital.com (“Website”). You will be subject to the rules, guidelines, policies, terms, and conditions applicable to any facilities that are provided by this Website and all associated web pages/ sites and they shall be deemed to be incorporated into these Terms of Use and shall be considered as part and parcel of these Terms of Use.

In terms of the information Technology Act, 2000 (as amended from time to time), this document is an electronic record.  By accessing the Website and availing for facilities on the Website, the users (hereinafter referred to as "you", or "your") agree to be bound by these Terms of Use, the legal disclaimer (‘Legal Disclaimer’) and the Privacy Policy (“Privacy Policy”), as posted on the Website.

This Agreement describes the terms governing the usage of the facilities provided to you on the Website. Clicking "I Agree" to "Terms & Conditions", shall be considered as your electronic acceptance of this Agreement under Information Technology Act 2000. Your continued usage of the facilities from time to time would also constitute acceptance of the Terms of Use including any updation or modification thereof and you would be bound by this Agreement until this Agreement is terminated as per provisions defined herein.

Your electronic consent, accepting these Terms of Use, represents that you have the capacity to be bound by it, or if you are acting on behalf of any person, that you have the authority to bind such person.

You also acknowledge and agree that, unless specifically provided otherwise, these Terms of Use only apply to this Website and facilities provided on this Website. All of the ABC Companies may have their own individual web pages/sites which are owned by the respective ABC Companies and the facilities offered by the respective ABC Companies will be governed in accordance with the terms and conditions posted of those web pages/websites which you would be bound while availing the facilities/services of the said respective ABC Companies through their respective web pages / sites or otherwise in any other mode as the case may be.

Changes to the Terms of Use

You agree that these Terms of Use may be subject to change/modification for such reason as it may deem fit and proper, including but not limited to comply with changes in law or regulation, correct inaccuracies, omissions, errors or ambiguities, reflect changes in the process flow, scope and nature of the services, company reorganisation, market practice or customer requirements. Upon any change, the updated Terms of Use will be updated on the Website or any other means. Your continued use of the facilities on this Website constitutes acceptance of the changes and an Agreement to be bound by Terms of Use, as amended. You can review the most current version of the Terms of Use at any time, by clicking the Terms & Conditions link on the Website. No fee of whatsoever nature is to be charged for the use of this Website.

If you do not agree with any of these Terms of Use, you may not use this Website.

Authorisation to Facilities Provider

Whenever consent has been obtained/provided by you in any mode under these Terms and Conditions, for availing information/services related to ABC Companies, You agree and authorize the Facilities Provider to share/transfer/transmit your personal information with its ABC Companies and other third parties, in so far as required for offering of facilities through this Website and for analytical / marketing purposes /report generations and/or to offer connected facilities on the Website and may also include transfer/sharing/transmitting  of sensitive personal data or information only if it is deemed necessary for the performance of facilities and to provide you with various value added and ancillary facilities/services and information, to aid you in managing your money needs in the manner agreed under these Terms and Conditions and the privacy policy.  You agree to receive e-mails/SMS/phone calls and such other mode as permitted under law from the Facilities Provider or ABC Companies or its third-party service providers regarding the facilities updates, information/promotional offer and/or new product announcements and such other related information.

You also agree and authorize ABC Companies / its third-party service providers to contact you at the contact information provided for service related communication relating to your product or facilities offered even if your number is in National Do Not Call Registry.

You have the option to withdraw the said consent in the manner specified under these Terms of Use. Please also read the Privacy Policy for more information and details as provided on the Website. The Privacy Policy may be updated from time to time. Changes will be effective upon posting of the revised Privacy Policy on the Website.

One ID at Aditya Birla Capital

You can create a unique ID on the Website for managing and transacting all financial and non financial transactions with ABC Companies. One ID enables you to have a single login ID for viewing and transacting all your product and service needs across ABC Companies. One ABC ID can be created by you on the Website or any of the webpage of ABC Companies (Account.ABC.com sign up page.) by using your e-mail Id and login credentials as registered with the respective ABC Companies while availing the products / services and completing the authentication procedure in the manner specified at the time of creation of One ID.

Once you have created ONE ID you can link and view all your financial products held with ABC Companies on single web page through verification / authentication procedure as applicable to your account/financial products held with the respective ABC Companies.  

You may choose not to create One ID in which case you will not be able to display all your products across ABC Companies on one page. In circumstances like duplicate email id/phone number you may not be able to create the One ID. In such circumstances you must contact the ABCL Affiliate with whom you have held the product/availed the services to enable update the email id/phone number.

 In case you forget the username or password, you can reset the same using the forgot username and password link available on the Website and completing the authentication procedure specified on the Website.    

MoneyForLife Planner

To help you for your money needs you can avail the facility of MoneyForLife Planner (‘MoneyForLife Planner/ Planner’). MoneyForLife Planner facility is powered by Aditya Birla Money Limited, a subsidiary of ABCL. MoneyForLife Planner provides an indicative assessment of your money needs based on the factors like income, age, family members and their future, your future money requirements and current lifestyle status as per details filled in by you on the online questionnaire. The Planner provides an indicative view about the generic investment opportunities available in the manner indicated by you. The results provided by the Planner are generic in nature and do not necessarily reflect the actual investment profile that you may hold and it is not necessary for you to act on it. The Planner provides a generic indication of your money needs to enable you to prioritize your investment needs which are rule based. Therefore, the search results displayed by the Planner cannot be construed to be entirely accurate / comprehensive.

No fee or consideration or economic benefit either directly or indirectly is associated for availing the assessment through MoneyForLife Planner and therefore it is not to be considered as an investment advice or financial planning and / or investment advisory services.

You agree and understand that use of MoneyForLife Planner does not assure attainment of your investment objectives and there is no assurance that the money objectives will be achieved, as the same is subject to performance of the securities, the forces affecting the securities market and your risk profile. You are advised to consult an investment advisor in case you would like to undertake financial planning and / or investment advice for meeting your investment requirements.

You also agree that risks associated with any investment would be entirely yours and you would not hold ABCL and/or ABC Companies or any of its employees liable for any losses that may arise on account of any investments under taken basis the use of MoneyForLife Planner.

All investment decisions shall be taken by you in your sole discretion. You are advised to read the respective offer documents carefully for more details on risk factors, terms and conditions before making any investment decision in any scheme or products or securities or loan product. All investments in any product / fund / securities etc. will be on the basis, subject to and as per the terms and conditions of the specific product’s / fund’s / security’s offer document, key information memorandum, risk disclosure document, product or sales brochure or any other related documents which are offered by the respective issuer of such product/securities. You can use execution platform/services with any third party as deem fit and proper, and there is no compulsion to use the execution services through this Website.

Not an Investment Advisor, Planner, Broker or Tax Advisor

The facilities on the Website are not intended to provide any legal, tax or financial or securities related advice. You agree and understand that the Website is not and shall never be construed as a financial planner, financial intermediary, investment advisor, broker or tax advisor. The facilities are intended only to assist you in your money needs and decision-making and is broad and general in scope. Your personal financial situation is unique, and any information and advice obtained through the facilities may not be appropriate for your situation. Accordingly, before making any final decisions or implementing any financial strategy, you should consider obtaining additional information and advice from your advisor or other financial advisers who are fully aware of your individual circumstances. For more details, please also refer to the Legal Disclaimers provided on the Website.

Financial Solutions

We may provide you with various money solutions and options which are generally available basis your investment profile or those which are generally held by persons of similar investment profile. You authorize us to use/disseminate the information to provide the Financial Solutions however it is not necessarily for you to act on it. It only serves an indicative use of information which you may execute in the manner agreed by you.

Password Protection

You shall not be entitled to avail the facilities without the use of a user name and password. You are responsible for maintaining the confidentiality of your password and Account, and you shall not allow anyone else to use your password at any time. You are fully responsible for all activities that occur using your password or Account. You are requested to please notify www.adityabirlacapital.com immediately of any unauthorized use or access of your password or Account, or any other breach of security. The Website will not be liable for any loss that you may incur as a result of someone else using your password or account, either with or without your knowledge.

Intellectual Property Rights

This Website contains information, materials, including text, images, graphics, videos and sound (“Materials”), which is protected by copyright and/or other intellectual property rights. All copyright and other intellectual property rights in these Materials are either owned by ABCL or have been licensed to Facilities Provider, ABCL / ABC Companies by the owner(s) of those rights so that it can use these Materials as part of this Website. Other than those Materials which belong to Third Parties, ABC Companies retains copyright on all Information, including text, graphics and sound and all trademarks displayed on this Website which are either owned by or licensed to by ABCL and/or used under license by ABC Companies.

You shall not (a) copy (whether by printing off onto paper, storing on disk, downloading or in any other way), distribute (including distributing copies), download, display, perform, reproduce, distribute, modify, edit, alter, enhance, broadcast or tamper with in any way or otherwise use any Materials contained in the Website. These restrictions apply in relation to all or part of the Materials on the Website; (b) copy and distribute this information on any other server or modify or re-use text or graphics on this system or another system. No reproduction of any part of the Website may be sold or distributed for commercial gain nor shall it be modified or incorporated in any other work, publication or web site, whether in hard copy or electronic format, including postings to any other web site; (c) remove any copyright, trade mark or other intellectual property notices contained in the original material from any material copied or printed off from the web site; link to this Website; without our express written consent.

No Warranty

Although all efforts are made to ensure that information and content provided as part of this Website is correct at the time of inclusion on the Website, however there is no guarantee to the accuracy of the Information. This Website makes no representations or warranties as to the fairness, completeness or accuracy of Information. There is no commitment to update or correct any information that appears on the Internet or on this Website. Information is supplied upon the condition that the persons receiving the same will make their own determination as to its suitability for their purposes prior to use or in connection with the making of any decision. Any use of this Website or the information is at your own risk. Neither ABCL and ABC Companies, nor their officers, employees or agents shall be liable for any loss, damage or expense arising out of any access to, use of, or reliance upon, this Website or the information, or any website linked to this Website.

No Liability

This Website is provided to you on an "as is" and "where-is" basis, without any warranty. ABCL, for itself and any ABC Companies and third party providing information, Materials (defined later), facilities, or content to this Website, makes no representations or warranties, either express, implied, statutory or otherwise of merchantability, fitness for a particular purpose, or non-infringement of third party rights, with respect to the website, the information or any products or facilities to which the information refers. ABCL will not be liable to you or any third party for any damages of any kind, including but not limited to, direct, indirect, incidental, consequential or punitive damages, arising from or connected with the site, including but not limited to, your use of this site or your inability to use the site, even if ABCL has previously been advised of the possibility of such damages. Any access to information hosted on third party websites of billers/banks/merchants/ABC Companies etc. is not intended and shall not be treated as an offer to sell or the solicitation of an offer to buy any product/offering of these ABC Companies or third parties.

The Facilities Provider or ABCL or ABC Companies shall have absolutely no liability in connection with the information and Material posted on this Website including any liability for damage to your computer hardware, data, information, materials, or business resulting from the information and/or Material or the lack of information and/or Material available on the Website. In no event shall ABCL or ABC Companies shall be liable for any for any special, incidental, consequential, exemplary or punitive damages for any loss, arising out of or in connection with (a) the use, misuse or the inability to use this Website; (b) unauthorized access to or alteration of your transmissions or data; (c) statements or conduct of any third party on the site; or (d) any other matter whatever nature relating to this Website.

Further, the Facilities Provider cannot always foresee or anticipate technical or other difficulties. The facilities may contain errors, bugs, or other problems. These difficulties may result in loss of data, personalization settings or other facilities interruptions. The Website does not assume responsibility for the timeliness, deletion, mis-delivery, or failure to store any user data, communications, or personalization settings.

The Facilities Provider, ABCL, ABC Companies and the providers of information shall not be liable, at any time, for any failure of performance, error, omission, interruption, deletion, defect, delay in operation or transmission, computer virus, communications line failure, theft or destruction or unauthorized access to, alteration of, or use of information contained at this Website.

Manner of Use of Personal Information

All Personal Information including Sensitive Personal Information provided/related to you, shall be stored/used/processed/transmitted expressly for the Purpose or facilities indicated thereon at the time of collection and in accordance with the Privacy Policy. Other than those otherwise indicated and agreed by You, this Website do not collect or store or share your Personal Information. Aditya Birla Capital is the brand and accordingly all products and facilities are provided by respective ABC Companies as applicable. Therefore, for any of these Purposes, the Website will use ABC Companies their authorized third party vendors, agents, contractors, consultants or facilities providers (individually a ‘Third Party Service Provider’ and collectively, the “Third Party Service Providers”) and to that extent you understand and authorize the Facilities Provider to share/transmit such information to Third Party Service Providers. Such sharing of information will be solely for the purpose to fulfill / complete / authenticate your specific requests/transaction execution and for providing information about any ABC Companies product or facilities or services or for data analytics or to deliver to you any administrative notices, alerts or communications relevant to your Purpose (and which may include sending promotional emails or SMS or calls or any other mode permitted under law) or to analyze the usage and improve the facilities/solutions offered or for any research or troubleshooting problems, detecting and protecting against errors or to improve features, tailor the facilities on the Website to your interests, and to get in touch with you whenever necessary.

Except in the manner as stated in the Privacy Policy, the Website will not disclose your Personal Information with any affiliated or unaffiliated third parties,

You may receive e-mails /communications/notifications from the Third Party Services Providers regarding facilities updates, information/promotional e-mails/SMS and/or update on new product announcements/services in such mode as permitted under law.

Use of Website in India

This Website is controlled and operated from India and there is no representation that the Materials/information are appropriate or will be available for use in other locations. If you use this Website from outside the India, you are entirely responsible for compliance with all applicable local laws. There is no warranty or representation that a user in one region may obtain the facilities of this website in another region.

Information published on the Website may contain references or cross references to products, programs and facilities offered by ABC Companies/third parties that are not announced or available in your country. Such references do not imply that it is intended to announce such products, programs or facilities in your country. You may consult your local advisors for information regarding the products, programs and services that may be available to you.

In your use of the Website, you may enter correspondence with, purchase goods and/or facilities from, or participate in promotions of advertisers or members or sponsors of the web site, including those of ABC Companies. Unless otherwise stated, any such correspondence, advertisement, purchase or promotion, including the delivery of and the payment for goods and/or facilities, and any other term, condition, warranty or representation associated with such correspondence, purchase or promotion, is solely between you and the applicable ABC Companies and/or third parties.

You agree that Facilities Provider / ABC Companies has no liability, obligation or responsibility for any such correspondence, purchase or promotion between you and any other ABC Companies and/or third parties.

Third party websites

This Website may be linked to other websites (including those of ABC Companies) on the World Wide Web that are not under the control of or maintained by ABCL. Such links do not indicate any responsibility or endorsement on our part for the external website concerned, its contents or the links displayed on it. These links are provided only as a convenience, in order to help you find relevant websites, facilities and/or products that may be of interest to you, quickly and easily. It is your responsibility to decide whether any facilities and/or products available through any of these websites are suitable for your purposes. The Facilities Provider or ABCL is not responsible for the owners or operators of these websites or for any goods or facilities they supply or for the content of their websites and does not give or enter into any conditions, warranties or other terms or representations in relation to any of these or accept any liability in relation to any of these (including any liability arising out of any claim that the content of any external web site to which this web site includes a link infringes the intellectual property rights of any third party).

USE of APP

In case any facilities/services, access/dissemination of information or execution of transaction is done through use of any APP related to ABC Companies, the additional terms and conditions governing the Use of APP shall be applicable and to be read along these Terms of Use.

Postings and monitoring

The Facilities Provider or ABCL or ABC Companies does not routinely monitor your postings to the Website but reserves the right to do so if deemed necessary if it is related to the facilities offered on the web site and to comply with law. However, in our efforts to promote good citizenship within the internet community, if the Facilities Provider or ABCL or ABC Companies becomes aware of inappropriate use of the Website or any of its facilities, any information, opinions, advice or offers posted by any person or entity logged in to the Website or any of its associated sites is to be construed as public conversation only, and the Facilities Provider or ABC Companies shall not be liable or responsible for such public conversation. You agree that in such cases, we will respond in any way that, in our sole discretion, as deemed appropriate. You acknowledge that Facilities Provider or ABC Companies will have the right to report to law enforcement authorities any actions that may be considered illegal, as well as any information it receives of such illegal conduct. When requested, ABC Companies/Facilities Provider will co-operate fully with law enforcement agencies in any investigation of alleged illegal activity on the internet.

Submissions and unauthorized use of any Materials contained on this Website may violate copyright laws, trademark laws, the laws of privacy and publicity, certain communications statutes and regulations and other applicable laws and regulations. You alone are responsible for your actions or the actions of any person using your user name and/or password. As such, you shall indemnify and hold Facilities Provider, ABCL / ABC Companies and its officers, directors, employees, affiliates, agents, licensors, and business partners harmless from and against any and all loss, costs, damages, liabilities, and expenses (including attorneys' fees) incurred in relation to, arising from, or for the purpose of avoiding, any claim or demand from a third party that your use of the Website or the use of the Website by any person using your user name and/or password (including without limitation your participation in the posting areas or your submissions) violates any applicable law or regulation, or the rights of any third party.

We reserve the right to terminate access to this Website at any time and without notice. Further this limited license terminates automatically, without notice to you, if you breach any of these Terms of Use. Upon termination, you must immediately destroy any downloaded and printed Materials.

If you come across any breaches/violation or offensive material you must report to us at abc.secretarial@adityabirla.com

Use of Cookies

You agree and understand that the Website will automatically receive and collect certain anonymous information in standard usage logs through the Web server, including computer/computer resource-identification information obtained from "cookies" sent to your browser from a web server or other means as explained in the Privacy Policy.  

Facilities Changes and Discontinuation

The Website reserves the right to discontinue or suspend, temporarily or permanently, the facilities. You agree that the Facilities Provider/ ABC Companies will not be liable to you in any manner whatsoever for any modification or discontinuance of the facilities. The format and content of this Website may change at any time. We may suspend the operation of this Website for support or maintenance work, in order to update the content or for any other reason.

ABCL, ABC Companies, and its directors, employees, associates, or other representatives shall not be liable for any damages or injury, arising out of or in connection with the use, or non-use including non-availability of the Website and also for any consequential loss or any damages caused because of non-performance of the system due to a computer virus, system failure, corruption of data, delay in operation or transmission, communication line failure, or any other reason whatsoever. The Website will not be responsible for any liability arising out of delay in providing any information on the Website.

Compliance with the Law

You agree that you will not:

  • Use any robot, spider, scraper, deep link or other similar automated data gathering or extraction tools, programme, algorithm or methodology to access, acquire, copy or monitor the Website, or any portion of the Website.
  • Use or attempt to use any engine, software, tool, agent, or other device or mechanism (including without limitation, browsers, spiders, robots, avatars or intelligent agents) to navigate or search the Website, other than the search engines generally available by third party web browsers
  • Post or transmit any file which contains viruses, worms, Trojan horses or any other contaminating or destructive features, or that otherwise interferes with the proper working of the Website or the facilities.
  • Attempt to decipher, decompile, disassemble, or reverse engineer any of the software, comprising or in any way making up a part of the Website or the facilities.
  • You agree not to use the facilities for illegal purposes or for the transmission of material that is unlawful, harassing, libelous (untrue and damaging to others), invasive of another's privacy, abusive, threatening, or obscene, or that infringes the rights of others.

Restrictions on Commercial Use or Resale

Your right to use the facilities is personal to you; therefore, you agree not to resell or make any commercial use of the facilities. In addition, the Website welcomes your feedback as a user of the facilities. Any feedback you provide will become the confidential and proprietary information of the Website, and you agree that the Website may use in any manner and without limitation, all comments, suggestions, complaints, and other feedback you provide relating to the Website. The Website shall have a worldwide, royalty-free, non-exclusive, perpetual, and irrevocable right to use feedback for any purpose, including but not limited to incorporation of such feedback into the Website or other Website software or facilities.

No Endorsements

All product and facilities marks contained on or associated with the facilities that are not the Website marks are the trademarks of their respective owners. The Website would require you to respect the same. References to any such names, marks, products or facilities of third parties or hypertext links to third party sites or information does not imply the Website’s endorsement, sponsorship or recommendation of the third party, information, product or facilities.

Promotional Offers

You may receive from time to time, announcement about offers with intent to promote this Website and/or facilities/products of ABC Companies (“Promotional Offers”). The Promotional Offer(s) would always be governed by these Terms of Use plus certain additional terms and conditions, if any prescribed. The said additional terms and conditions, if prescribed, would be specific to the corresponding Promotional Offer only and shall prevail over these Terms of Use, to the extent they may be in conflict with these Terms of Use. The Website reserves the right to withdraw, discontinue, modify, extend and suspend the Promotional Offer(s) and the terms governing it, at its sole discretion.

Charges for use of Website

There are no charges or fees to be paid by you for use of this Website. However, you are responsible for all telephone access fees and/or internet service fees that may be assessed by your telephone and/or internet service provider. You further agree to pay additional charges, if any levied by Third Party Service Provider(s), for the facilities provided by them through the Website (Additional Charges).

No Endorsement

You are advised to be cautious when browsing on the internet and to use good judgment and discretion when obtaining information or transmitting information. From this Website, users may visit or be directed to third party web sites. The Website makes no effort to review the content of these web sites, nor is the Website or its licensors responsible for the validity, legality, copyright compliance, or decency of the content contained in these sites.

In addition, the Website does not endorse or control the content of any other user and is not responsible or liable for any content, even though it could be unlawful, harassing, libelous, privacy invading, abusive, threatening, harmful, vulgar, obscene or otherwise objectionable, or that it infringes or may infringe upon the intellectual property or other rights of another. You acknowledge that the Website does not pre-screen content, but that the Website will have the right (but not the obligation) in their sole discretion to refuse, edit, move or remove any content that is available via the facilities.

Electronic Communications

These Terms of Use and any notices or other communications regarding the Facilities may be provided to you electronically, and you agree to receive communications from the Website in electronic form. Electronic communications may be posted on the Website and/or delivered to your registered email address, mobile phones etc either by Facilities Provider or ABC Companies with whom the services are availed. All communications in electronic format will be considered to be in "writing". Your consent to receive communications electronically is valid until you revoke your consent by notifying of your decision to do so. If you revoke your consent to receive communications electronically, the Facilities Provider shall have the right to terminate the facilities.

Assignment

You shall not assign your rights and obligations under this Agreement to any other party. The Website may assign or delegate its rights and/or obligations under this Agreement to any other party in future, directly or indirectly, or to an affiliated or group company.

Legal Disclaimers

The information provided on or through the Website is for general guidance and information purposes only and they do not in any manner indicate any assurance or opinion of any manner whatsoever. Any information may be prone to shortcomings, defects or inaccuracies due to technical reasons. Certain information on Website may be on the basis of our own appraisal of the applicable facts, law and regulations in force at the date hereof.

The information (and opinions, if any) contained on the Website may have been obtained from public sources believed to be reliable and numerous factors may affect the information provided, which may or may not have been taken into account. The information provided may therefore vary (significantly) from information obtained from other sources or other market participants. Any reference to past performance in the information should not be taken as an indication of future performance. The information is dependent on various assumptions, individual preferences and other factors and thus, results or analyses cannot be construed to be entirely accurate and may not be suitable for all categories of users. Hence, they should not be solely relied on when making investment decisions. Your investment or financial decision shall always be at your own discretion and based on your independent research; and nothing contained on the Website or in any information would construe ABCL/ABC Companies or any of its employees/authorized representative as having been in any way involved in your decision making process. Any information and commentaries provided on the Website are not meant to be an endorsement or offering of any stock or investment advice.

Nothing contained herein is to be construed as a recommendation to use any product, process, equipment or formulation, in conflict with any patent, or otherwise and Facilities Provider / ABCL/ABC Companies makes no representation or warranty, express or implied that, the use thereof will not infringe any patent, or otherwise. Information on this Website sourced from experts or third party service providers, which may also include reference to any ABCL Affiliate. However, any such information shall not be construed to represent that they belong or represent or are endorsed by the views of the Facilities Provider or ABC Companies. Any information provided or sourced from ABCL Affiliate belongs to them. ABCL is an independent entity and such information from any ABCL Affiliate are not in any manner intended or to be construed as being endorsed by ABCL or Facilities Provider. The information does not constitute investment or financial advice or advice to buy or sell, or to endorse or solicitation to buy or sell any securities or other financial instrument for any reason whatsoever. Nothing on the Website or information is intended to constitute legal, tax or investment advice, or an opinion regarding the appropriateness of any investment or a solicitation of any type. Investment in the securities market and any financial instruments are inherently risky and you shall always assume complete and full responsibility for the outcomes of all the financial or investment decisions that you make, including but not limited to loss of capital. You are therefore advised to obtain your own applicable legal, accounting, tax or other professional advice or facilities before taking or considering an investment or financial decision.

No Solicitation

No Information at this Website shall constitute an invitation to invest in ABCL or any ABC Companies. These are meant for general information only or to meet statutory requirements or disclosures. ABCL or any of its employees are in no way liable for the use of the information by you, when making any decision or investing or trading through any investment vehicles or ABC Companies, or any other third party which may be engaged in offering of these services.

The information contained on this Website does not represent and should not be used to construe (i) the terms on which a new transaction would be entered into by ABCL or ABC Companies, (ii) the terms on which any existing transactions could be unwound by ABCL or ABC Companies, (iii) the calculation or estimate of an  amount that would be payable following an early termination of any past/existing transactions or (iv) the valuations given to any transactions by ABCL or ABC Companies in their books of account for financial reporting, credit or risk management purposes.

Statutory Disclosure

ABCL and ABC Companies are engaged in a broad spectrum of activities in the financial services sectors. You understand and acknowledge that Aditya Birla Money Limited (‘ABML’), Aditya Birla Finance Limited (‘ABFL’) and Aditya Birla Sun Life Asset Management Company Limited and trustees and sponsor of Aditya Birla Sun Life Mutual Fund (‘ABSLMF’) are group companies and ABML / ABFL also acts as a distributor of ABSLMF.  Any recommendation or reference of schemes of ABSLMF if any made or referred on the Website, the same is based on the standard evaluation and selection process, which would apply uniformly for all mutual fund schemes. You are free to choose the execution facilities in the manner deemed fit and proper and no commission will be paid by ABSLMF to ABML / ABFL if you choose to execute a transaction with ABSLMF on the Website, unless otherwise agreed by you and ABML/ABFL separately. Information about ABML/ABFL, its businesses and the details of commission structure receivable from asset management companies to ABML/ABFL, are also available on their respective Website.

Similarly Aditya Birla Money Insurance Advisory Services Limited and Aditya Birla Insurance Brokers Limited are insurance intermediaries and engaged in the distribution of Insurance Products and it may services may include products of Aditya Birla Sun Life Insurance Company Limited and Aditya Birla Health Insurance Company Limited. However there is no conflict on these services and commissions if any payable are in accordance of the extant regulations.

Force Majeure

The Facilities Provider, ABC Companies and any of its Third Party Service Providers shall not be liable for any delay or failure in performance resulting directly or indirectly from acts of nature, forces, or causes beyond their reasonable control, including, without limitation, Internet failures, computer equipment failures, telecommunication equipment failures, other equipment failures, electrical power failures, strikes, virus, other malicious computer code, hacking, labour disputes, riots, insurrections, civil disturbances, shortages of labour or materials, fires, flood, storms, explosions, acts of God, war, earthquake, governmental actions, orders of domestic or foreign courts or tribunals, non-performance of third parties, or loss of or fluctuations in heat, light, or air conditioning.

Indemnification

You agree to protect and fully compensate Facilities Provider, ABCL, ABC Companies, subsidiaries, licensors, suppliers and facilities providers, employees, officers and directors, from any and all third party claims, liability, damages, expenses and costs (including but not limited to reasonable attorneys fees) caused by or arising from your use of the facilities, your violation of the Terms of Use or your infringement, or infringement by any other user of your account, of any intellectual property or other right of anyone.

No Waiver

The Facilities Provider, ABC Companies or any of its third party service providers and processor bank/merchants etc. shall not be deemed to have waived any of its/their rights or remedies hereunder, unless such waiver is in writing. No delay or omission on the part of Facilities Providers and ABC Companies, in exercising any rights or remedies shall operate as a waiver of such rights or remedies or any other rights or remedies. A waiver on any one occasion shall not be construed as a bar or waiver of any rights or remedies on future occasions.

Exclusive Agreement

You agree that these Terms of Use are the complete and exclusive statement of agreement supersede any proposal or prior agreement, oral or written, and any other communications between you and the Facilities Provider and its Third Party Service Providers or processor bank/merchants relating to the subject matter of these Terms of Use. These Terms of Use, as the same may be amended from time to time, will prevail over any subsequent oral communications between you and the Website and/or the processor bank.

Termination

Either party can terminate this Agreement by notifying the other party in writing. Upon such termination You will not be able to use the facilities of this Website.

Governing Law and Jurisdiction

The Website specifically prohibits you from usage of any of its facilities in any countries or jurisdictions that do not corroborate to all stipulations of these Terms of Use. The Website is specifically for users in the territory of India. In case of any dispute, either judicial or quasi-judicial, the same will be subject to the laws of India, with the courts in Mumbai having exclusive jurisdiction.

These Terms and Conditions are governed by and to be interpreted in accordance with laws of India, without regard to the choice or conflicts of law provisions of any jurisdiction. You agree, in the event of any dispute arising in relation to these Terms and Conditions or any dispute arising in relation to the Website whether in contract or tort or otherwise, to submit to the jurisdiction of the courts located at Mumbai, India for the resolution of all such disputes.

Latest Articles

ABC of Taxes
ABC of Taxes
ABC of Taxes

Section 115BAB of the Income Tax Act

Read More
Posted on 22 July 2024
ABC of Taxes
ABC of Taxes

Section 194R of Income Tax Act: Purpose, Scope & Applicability

Read More
Posted on 22 July 2024
ABC of Taxes
ABC of Taxes

Income Tax Customer Care Number

Read More
Posted on 22 July 2024