TDS New Rules: From July 1, there will be a big change in TDS rules, know which are!

TDS New Rules: from 1st of July TDS rules Big changes will happen. Giving and receiving gifts can be expensive. New Rules (TDS New Rules) A new section 194R has been added in the Income Tax Act. Now if a profit of Rs 20,000 or more is given in a financial year, then 10 percent […]
 


TDS New Rules: From July 1, there will be a big change in TDS rules, know which are!

TDS New Rules: from 1st of July TDS rules Big changes will happen. Giving and receiving gifts can be expensive. New Rules (TDS New Rules) A new section 194R has been added in the Income Tax Act. Now if a profit of Rs 20,000 or more is given in a financial year, then 10 percent TDS will be deducted on it. This provision was introduced in February 2022. The budget was done in 2022. According to Kamlesh C Varshney, Joint Secretary, Ministry of Finance, such facilities come with additional benefits and will be taxed. In this case, the payer will receive TDS from the recipient. There should be no confusion about this now.

Find out where TDS will be charged –

TDS will be deducted not only on cash profits paid to anyone, but also on shares, cars, sponsored business trips or conference events given to the directors of the company. In addition, he has to pay TDS even if profit or allowance is paid to the owner, director or a relative. Apart from this, TDS will also be levied on free samples, tickets and other sponsored materials given to doctors.

Know the new scope of TDS –

Under the new rules, if a social media influencer keeps a company-sponsored item with you after an advertisement, then he will also have to pay TDS for it. But if these things are returned then this provision will not apply.

This rule of TDS will not be applicable here-

Now you also need to know where this rule will not apply. If sales discounts, cash discounts or discounts are offered to customers, the new rules will not apply. But there is a current here as well. If the seller provides any exemption other than the above, TDS will be applicable.