TDS Rules Changed! Doctors, Social Media Influencers Required To Pay Extra Tax; Check Details Here

New TDS Rules: Several TDS rules have been changed from July 1, including a 1 per cent tax on crypto transactions. However, the new rules for doctors and social media influencers are very significant. Know here

New TDS Rules | New Delhi: The rules related to Tax Deducted at Source (TDS), have been changed by the Central Board of Direct Taxes (CBDT). From July 1, the doctors and social media influencers will be required to pay TDS on the free samples they receive from the other companies. Several changes have been announced by CBDT but this one is among the most significant ones. The TDS of 10 per cent will be charged to Doctors and Influencers.

The Union Budget 2022 introduced a new provision to prevent tax leakage from the system. Under Section 194R of the Income Tax Act, 1961, if the benefits of such samples exceed Rs 20,000, a 10 per cent TDS is applicable.

For doctors, this is significant as they receive free samples of medicines regularly from the companies. Now, they will have to be disclosed in the Income Tax Return (ITR). The hospital will have to treat the sample as a taxable product. It will also include products like TV, Tickets, gold or even cash. The conditions are mentioned in Section 192.

If the Doctor works as a consulting doctor with several hospitals, then the primary responsibility of paying the TDS will lie with the hospital and not the doctor. The conditions for this are mentioned in Section 194R.

Are there any exemptions?

• Now, if the Doctor works at a government hospital and does not carry a business or practice of their own, it will be exempt from TDS under Section 194R.
• Discounts on MRP have been made exempt from the TDS.
• For influencers, if the device/ product is returned to the company after use, it will not be taxable. This is important for influencers that put out their reviews.