CBDT issues guidelines for new tax rule on gifts, benefits to influencers

The Central Board of Direct Taxes(CBDT) on Thursday issued detailed guidelines on the applicability of the new taxdeducted at source (TDS) provisions that come into effect on July 1.  

Under the provision, benefits like free medical samples received by doctors and gifts retained by social mediainfluencers will attract TDS under the new provisions related to benefits orperquisites received in a business or profession.  

During Budget 2022-23, the government announced provisions on TDS on benefits or perquisites to keep a check on tax revenue leakage. However, there were doubts around the provisionwhich had required the clarity.  

A section was introduced in theI-T Act which