New TDS Rules to affect Social Media Influencers and Doctors

Poojitha Raam Vinay | Last updated: 27 June 2022

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Quick Summary

New TDS rules under Section 194R, effective from 1st July 2022, require a 10% tax deduction on benefits or perquisites exceeding £20,000 provided to residents. This applies to social media influencers receiving freebies for endorsements and doctors receiving free medicine samples. The tax is calculated on the Fair Market Value or purchase price, excluding GST. Exemptions exist for government entities, sales discounts, and when products are returned by influencers.

The new TDS section 194R introduced in the Budget, 2022 shall be applicable from 1st July, 2022, requiring a deduction of 10% by any person (resident or non-resident) who provides benefit or perquisite to a resident person in a year exceeding Rs 20,000 shall be liable for TDS under section 194R.

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About the Author

Poojitha Raam Vinay

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I simplify complex income tax, TDS, banking, and investment updates into practical insights for taxpayers, salaried professionals, pensioners, and senior citizens. I regularly write on ITR filing, tax compliance, savings schemes, and the latest financial rule changes in India.

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