HomeArticlesIncome TaxSocial Media Influencers And Doctors Will Have To Pay 10% TDS For Promotion Of Products

Social Media Influencers And Doctors Will Have To Pay 10% TDS For Promotion Of Products

The Union Budget has introduced a new Section 194R into the Income-Tax (I-T) Act, 1961. According to it, TDS of 10 percent must be deducted by any person who provides benefits or perquisites exceeding Rs 20,000 in a year to a resident, arising from the latter’s business or profession. Doctors, Social Media Influencers, etc are now subject to TDS (Tax Deducted at Source) wef 1st July’2022.

Accordingly, Doctors, Social Media Influencers, Music Bands, etc are now subject to TDS on the Free products they receive for Sales Promotion. TDS would include benefits endowed in cash or other forms such as car, mobile phone, computer, television, gold coin, free event tickets, or foreign trips. However, if the product is returned to the company after using the services, it will not fall under Section 194R.

The proposed new section provides that the person responsible for delivering to a resident, any benefit or perquisite, whether convertible into money or not, arising from business or the exercise of a profession by such resident, shall, before providing such benefit or perquisite, as the case may be, to such resident, ensure that tax has been deducted in respect of such benefit or prerequisite at the rate of ten percent. of the value or aggregate of the value of such benefit or perquisite.

Leave a Reply

Your email address will not be published. Required fields are marked *


Making it easy

Copyright: © 2024 Topfilings.com build by Minilead. All Rights Reserved.