38.6c New Delhi, India, Monday, May 20, 2024
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

supreme-court-refuses-to-entertain-plea-for-stay-on-new-criminal-laws
Trending Judiciary
Supreme Court refuses to entertain plea for stay on new criminal laws

SC refuses plea to stay new criminal laws. Court deems the plea casual, noting laws aren't yet implemented. Petitioner withdraws. Laws effective from July 1, 2024.

20 May, 2024 12:58 PM
scba-election-result-2024-know-the-newly-elected-members
Trending Know The Law
SCBA Election Result 2024, Know the newly elected members

SCBA Election Result 2024: Senior Advocate Kapil Sibal elected President. Know the newly elected members and key office bearers leading the Supreme Court Bar Association.

20 May, 2024 03:03 PM

TOP STORIES

sc-issues-notice-to-ed-on-hemant-sorens-plea-against-arrest-in-land-scam
Trending Judiciary
SC Issues Notice to ED on Hemant Soren's Plea Against Arrest in Land Scam

Supreme Court issues notice to ED on Hemant Soren's plea against arrest in a land scam case, sets hearing for May 17 after senior advocate Kapil Sibal's request for an earlier date.

14 May, 2024 11:24 AM
3800-metric-tonnes-of-solid-wastes-going-untreated-everyday-in-delhi-sc-records-concern
Trending Environment
3,800 metric tonnes of solid wastes going untreated everyday in Delhi SC records concern

The Supreme Court expressed concern as 3,800 metric tonnes of solid waste in Delhi go untreated daily. The issue must be addressed promptly beyond political lines.

14 May, 2024 11:30 AM
plea-filed-in-sc-for-review-of-april-26-evm-vvpat-verdict
Trending Judiciary
Plea filed in SC for review of April 26 EVM VVPAT verdict

A plea has been filed in the Supreme Court to review its April 26 verdict on EVM VVPAT verification, challenging the decision that dismissed a demand for 100% vote cross-verification.

14 May, 2024 12:13 PM
ai-cant-detect-consent-microsoft-and-google-tell-delhi-high-court
Trending Judiciary
AI can’t detect consent Microsoft and Google tell Delhi High Court

Microsoft and Google tell Delhi HC that AI can't detect consent for NCII takedowns, challenging a 24-hour removal directive under IT Act's safe harbour protections.

14 May, 2024 01:33 PM

ADVERTISEMENT


Join Group

Signup for Our Newsletter

Get Exclusive access to members only content by email