No more freebies! Influencers, music bands, doctors liable to 10% TDS

Ensure value of goods doesn't exceed Rs 20,000 to avoid TDS

premium

This provision is likely to affect businesses that engage dealers and franchisers and provide them benefits based on their performance, or for the purpose of marketing.

Bindisha Sarang

4 min read Last Updated : Jun 24 2022 | 12:16 AM IST

The Central Board of Direct Taxes (CBDT) recently issued guidelines on how the new tax deducted at source (TDS) provisions regarding benefits received in a business or profession are to be applied. These provisions will come into effect from July 1. The Union Budget had introduced them by inserting a new Section 194R into the Income-Tax (I-T) Act, 1961.

According to it, TDS of 10 per cent 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. This provision won’t apply to individuals

Topics : TDS Income tax CBDT Central Board of Direct Taxes tax deductions Union budgets Social Media Music business DOCTOR