What Is New Tds Rules

When preparing 26Q for Q2, what will be the section code for TDS content creators under 194R call tax specialists, accountants and influencer marketing agencies to understand what a new clause, section 194R of the Income Tax Act, which applies to social media influencers, means to them. There are a few simple but important aspects of the recently introduced TDS rules. You can get a clear idea of it to understand the basics of the rule. The five key aspects of the new TDS Rule, which came into effect on July 1, 2022, are: The new TDS Rules will come into effect on July 1. In a June 25 circular, the Central Board of Direct Taxes (CBDT) extended the expiry date of various compliance regulations under the Income Tax Act 1961. Separate circulars also communicated the changes made to TDS due to the introduction of new articles in the 2021 Finance Act. We look at the new changes that came into effect on July 1: With the introduction of new laws and changes to the Income Tax Act, it could be normal to be in a state of confusion. The article above gives a brief idea of these changes. If you need help with TDS policies or new rules, you`ve landed on the right platform. You can count on Vakilsearch to learn more about the new TDS rules in India. If taxes are deducted/collected by government entities, it can remit taxes to the central government without presenting an income tax hallan. In this case, the accountant or treasurer or cheque drawing and payment agent or any other person, regardless of the name of the franchise declares the tax so deducted and who is responsible for charging this amount to the central government balance, must have a return on the NSDL form 24G.to with a prescribed time limit.

There is bad news for those unable to submit the ITRs for fiscal year 2020-21 (AY 2021-22). The same applies to higher TDS, which must apply to specific income, since the revision rules, which apply from 1 April 2022. The last date for the performance was December 31, 2021. The guidelines explain the circumstances under which the new TDS provision, which will come into force on July 1, will apply. This new TDS provision was introduced in Budget 2022-2023 to broaden the tax base and ensure that recipients of these promotional expenses by businesses report it on their tax returns and pay tax on the value of the benefit. Ketan Dalal, MD, Katalyst Advisors, a consulting firm, said the new section does not fit the concept of ease of doing business. “It will be an extremely cumbersome process for everyone – the designers, the agency and the brand – to track and submit these offers,” said Shivam Agarwal, founder of Deckster.Live. Influencer marketing platforms, which bridge the gap between content creators and brands, have pointed out that many brands that offer influencers free samples or gifts as a gesture of goodwill in exchange for a social media post would not display it as an ad spend in their books. Although these are brand advertising spend, it wasn`t tracked because influencers didn`t disclose it when filing tax returns. Q.3 – Should section 194R of the Act deduct tax if the benefit takes the form of fixed assets? TDS extractors and TCS collectors would not have to check the functionality of the seller`s PAN from which the TDS is to be deducted or the TCS is to be removed until the beginning of the fiscal year.

Tax withholding tax, also known as TDS, is a source-source tax deduction technique that has been implemented for fast and efficient tax collection. In this method, the payer deducts the income tax at source and transfers it to the government on behalf of the recipient. Varshney mentioned that people received the benefits and perks for business and the profession, but no one paid the taxes. “There is definitely a leak here. That is why the government introduced Section 194R of the TDS, he added. The tax department has compiled a list of taxpayers who did not file tax returns at the beginning of the 2021-22 fiscal year, taking into account the previous years 2018-19 and 2019-20. “However, if the tax is deducted on a payment basis because the payment is made earlier than the credit, the tax would be deducted from the total amount, as it is not possible to identify that payment with the GST component of the amount to be charged in the future,” he said. It is best to apply TDS to the hospital first for doctors who work for a hospital and receive free samples; this would then prescribe tax deductions for all medical consultants under section 194R. Question 5 – How should the benefit be assessed? With respect to doctors, the CBDT clarified that Section 194R applies to the delivery of free drug samples to the hospital, where doctors received free drug samples while working for that hospital.

In addition, the hospital, as an employer, may classify these drug samples as taxable benefits to employees and collaborators, and may also deduct taxes under section 192. The hospital must be taken into account when determining the ₹20,000 threshold in these situations. Abhishek Soni, co-founder and CEO of Tax2win, shared 5 key points to keep in mind about the new TDS rule, which will apply from July 1, 2022, in an exclusive conversation with Zee Media`s Reema Sharma. The Finance Act 2021 inserted two new sections 206AB and 206CCA into the Income Tax Act 1961 for tax deduction (section 206AB) or tax collection (section 206CCA) with a higher rate in the case of certain non-filers. According to the CBDT, the highest rate is double the prescribed rate, or 5%, whichever is higher. If the dealer conference decided for the purpose of. Question 4 – Are discounts, rebates and rebates beneficial? Effective today (July 1), non-filers of tax returns in the last two tax years would be subject to higher withholding tax (TDS) and withholding tax (TCS) if that tax deduction was ₹50,000 or more in each of those two years. He also announced a respite on discounts, discounts and rebates granted to the customer by excluding them from the scope of Article 194R, as their inclusion would put the seller in difficulty. No u/s 194R tax will be deducted on sales, discount, discount or discount granted to customers.

However, some do not expect a significant financial impact due to the new tax rule. Influencer Paritosh Anand, who creates content on various topics and has about 200,000 followers on social media, believes that the income of content creators will not be affected, but adds that the new provision is a complication. The concept of TDS was introduced with the aim of collecting taxes from the source of income. According to this concept, a person (deductor) who is obliged to make payments of a certain type to another person (deductible) must deduct the withholding tax and transfer it to the central government account. The deduction whose income tax was deducted at source would be entitled to a credit for the amount so deducted on the basis of Form 26AS or the TDS certificate issued by the beneficiary of the deduction. Sir, I do not understand how the drawer claims the TDS amount deposited in the name of the franchise when TDS u/s 194R must be deducted from the benefits and conditions that the extractor deducts in cash or in kind from his pocket.