New TDS rule from July 1, 2022: Free gifts will be expensive, 10% tax will have to be paid from July 1, know who will come in the round?
New TDS Rules 2022: A new guideline has been issued by the Central Board of Direct Taxes (CBDT). Under which 10% tax will be levied on the facilities provided for free from July 1, 2022. It is worth noting that at this time doctors are being given expensive gifts in the name of promotion and without paying any money. However, free gifts are becoming more expensive as the government will now offer tax free gifts.
No tax on gift return
The Central Board of Direct Taxes (CBDT) has amended the sales promotion guidelines of the Finance Act 2022. A new tax rule has been added to the Act, which requires social media influencers and doctors to pay TDS on freebies. However, the CBDT clarified that if the company returns the gifts, then TDS will not be applicable on those gifts.
Product review returns will be tax free
The CBDT said that cars, mobiles, clothing, cosmetics products are being gifted. But in some cases these products are returned after use. Such products would be kept out of the 194R Act of the CBDT. But if the product is not withdrawn, it will be added as part of the individual’s earnings. In this case, the person will have to pay 10 percent tax.
Who will pay the tax?
gold coin gift
mobile phone gift
gift overseas ticket
If the company provides free drug samples to hospital staff and consultants, it will be covered by TDS. According to the CBDT, if a gift is received by a doctor or a consultant, the tax will be added to the hospital expenses. The hospital can then deduct the tax from the cost of its employees’ wages.