TDS New Rules: From July 1, the new rule of TDS is going to be implemented. Under the new rule, now TDS will be deducted on transactions of additional benefits happening between two businessmen or professionals. Apart from cash, this gift or benefits can also be a car, sponsored trip, movie tickets etc. Let’s know the latest updates.
TDS New Rules: From July 1, major changes are taking place in the TDS rules. Now you may find it expensive to take gifts. Actually, under the new rule, a new section 194R has been added to the Income Tax Act. Now if a benefit of Rs 20,000 or more is given in a financial year, then 10 percent TDS will be deducted on it. This provision was made in the budget presented in February 2022.
According to the information given by Kamlesh C Varshney, Joint Secretary, Ministry of Finance, such facilities come in additional benefits and tax will be applicable on it. In this, tell that TDS will be received by the giver of the gift from the giver of the gift. Now there should be no confusion on this.
Know where TDS will be charged
TDS will not only be deducted on cash benefits paid to anyone, but it will also be applicable on shares, cars, sponsored business trips or conference events given to the directors of the company. Apart from this, even if the benefit or allowance is being paid to the owner, director or any relative, they will still have to pay TDS. Apart from this, TDS will also be levied on free samples, tickets and other sponsored materials given to doctors.
And most importantly, even if a taxpayer is out of the tax slab, his TDS will be deducted.
Know the new scope of TDS
According to the new rule, if a social media influencer keeps a company’s sponsored item with him after promotion, then he will have to pay TDS for that too. But this provision will not apply if these things are returned.
This rule will not apply here
Now let’s talk about where this rule will not apply. If sales discounts, cash discounts, or rebated offers are given to customers, then the new rule will not be applicable there. But here too there is a clause. If a seller gives any discount other than the above, then TDS will be applicable on it.
