What Social Media Influencers Should Know About New TDS Rule 2022?

If you are insanely famous on social media and collaborate with brands, you should know about the new TDS rule. From July 1, you may have to pay tax on receiving free samples/gifts/items from the brands for endorsing and retaining their products.

A new section 194R will impact all these types of transactions that used to go tax-free earlier. And the worrisome part is that the influencer receiving it should pay the tax amount as advanced tax.

Confused? Here, we are explaining the new tax rule in easy language.

What is New TDS Rule 2022?

<figcaption class="pl-caption>via:telegraphindia

• Reduce deals that include free gifts to influencers
• May affect income of social media influencers
• Impact micro-influencers and brands who rely on influencer marketing to gain followers
• Serves as a validation of this new form of income
• Also prevent brands from taking advantage of influencers and giving them free gifts in return which may not be useful for them
• Prevent non-taxable transactions

The new rule is not much clear among influencers as of now, but gradually it will be. Moreover, it will expand the tax base of the country.