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

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

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