New Section 194R

Applicable From 01.07.2022

Payer:-   Any person reponsible for providing any benefit or perquisite

Payee:-  Resident person 

Rate:-    10% of value or aggregate of the value of 'such benefit or perquisite'.

Threshold limit:- Exceeds Rs. 20,000

Social Media Influencers are nowadays playing an important role in the markiting startegy of the company.

From July 1st 2022, according to the new directives in the Finance Act 2022, per Section 194R under Income Tax Act 1961, social media influencers will pay 10% TDS on benefits endowed from businesses or entities. Benefits may be of any nature including cash, gift cards, gifts etc. exceeding value of Rs.20,000. The CBDT had issued the circular no. 12 dated 16th June 2022. The CBDT however clarified earlier that there will be no TDS if there’s a) sales discount or a b) cash discount or c) rebates allowed to customers.