38.6c New Delhi, India, Thursday, August 28, 2025
Top Stories Supreme Court
Political NEWS Legislative Corner Celebstreet International Videos
Subscribe Contact Us
close
Executive

Social Media Influencers and Doctors To Pay Tax On Freebies From July 1, Govt Issues New TDS Rules

By LawStreet News Network      23 June, 2022 05:15 PM      0 Comments
Social Media Influencers and Doctors To Pay Tax On Freebies From July 1, Govt Issues New TDS Rules

From July 1, doctors and social media influencers in India will be subject to Tax Deducted at Source (hereinafter, TDS) for benefits they receive from businesses for sales promotions. The Central Board of Direct Taxes (hereinafter, CBDT) has made recommendations on the applicability of the new provision.

In order to stop tax revenue from leaking, the Union Budget included TDS on income by adding a new Section 194R to the Income Tax Act of 1961. According to reports, anyone who provides a resident with a benefit worth more than 20,000 in a calendar year must pay TDS of 10%.

Kamlesh C. Varshney, Joint Secretary in the Finance Ministry, listed benefits including free medicine samples for doctors, free international airfare, free Indian Premier League (IPL) business tickets, and many more. He emphasised that because they are not being sold, these items should be disclosed when filing an income tax return and should not be hidden.

Sellers who provide incentives in cash or in any other form, such as a car, computer, gold coins, or mobile phones, in addition to discounts, are subject to the provisions of Section 194R.

This provided relief for customers by excluding sales discounts or cash discounts from the section, on the grounds that including them would place the seller in a difficult position. This new rule does not apply in cases where benefits such as a mobile phone are returned to the manufacturer after being utilised for service purposes, like a social media influencer.

According to the CBDT, a hospital is subject to free distribution of samples under section 194R if doctors receive them while working there. TDS should be applied first to the hospital, which will deduct the necessary tax under the section for doctors in the event of doctors who serve as consultants for a hospital and receive free samples.

As per CBDT, the benefits provided to a government institution that is not engaged in business or profession, such as a government hospital, are not subject to the provisions of the section.



Share this article:

User Avatar
About:


Leave a feedback about this
TRENDING NEWS

cant-projects-judges-as-political-actors-ex-cjis-former-judges-rebut-statement
Trending Executive
'Can't projects judges as political actors,' ex CJIs, former judges rebut statement by ex judges on statement of Amit Shah [Read Statement]

56 former judges, including ex-CJIs Sathasivam & Gogoi, rebut peers’ statement on Amit Shah, stressing judiciary must stay above politics.

27 August, 2025 06:46 PM

TOP STORIES

if-governor-does-not-declare-on-withholding-assent-for-time-immemorial-court-still-powerless-sc-poser-to-centre
Trending Judiciary
If Governor does not declare on withholding assent for time immemorial, court still powerless, SC poser to Centre

SC asks if Governor can withhold assent to Bills indefinitely, raising concern that legislature may be rendered defunct without judicial remedy.

22 August, 2025 12:41 PM
sc-widens-scope-of-suo-motu-hearing-on-stray-dogs-menace-suspends-previous-order-against-relocation
Trending Judiciary
SC widens scope of suo motu hearing on stray dogs menace; suspends previous order against relocation

SC expands stray dogs case to pan-India, suspends earlier relocation order; allows release after vaccination, bans unregulated feeding.

22 August, 2025 01:06 PM
sc-women-lawyers-body-condemns-sexist-remarks-by-justice-katju-seeks-apology
Trending Judiciary
SC women lawyers' body condemns 'sexist' remarks by Justice Katju; seeks apology [Read Press Release]

SC Women Lawyers Association condemns Justice Katju’s ‘sexist’ remarks, demands public apology; calls comments an assault on dignity of women lawyers.

22 August, 2025 03:49 PM
sc-orders-status-quo-on-sambhal-mosque
Trending Judiciary
SC orders status quo on Sambhal mosque

SC orders status quo on Sambhal mosque till Aug 25; seeks Hindu petitioners’ reply on plea against survey of Mughal-era masjid under dispute.

22 August, 2025 06:22 PM

ADVERTISEMENT


Join Group

Signup for Our Newsletter

Get Exclusive access to members only content by email