<p>Every year, Indian taxpayers treat July 31 as if it is the only income tax date that matters in the month. It is not. The July tax compliance calendar runs from the very first week of the month, and missing any of the earlier dates can create cascading problems — penalty notices, interest charges, and in some cases, the permanent loss of the right to carry forward losses to offset against future income. Here are the five income tax deadlines in July 2026 that every taxpayer, employer, and business owner needs to have on their calendar.</p><p>&nbsp;</p><p>July 7: TDS And TCS Deposits</p><p>&nbsp;</p><p>The first compliance deadline of the month falls on July 7, and it applies to anyone who deducts or collects tax at source. Tax Deducted at Source for the month of June 2026 must be deposited with the government by this date. Additionally, businesses that have been permitted by their Assessing Officer to make quarterly TDS deposits — covering the April to June 2026 quarter — must also deposit by July 7. This date also covers the upload of declarations received from buyers in Form 127 during June 2026, and declarations received from recipients in Form 121 for the quarter ending June 2026.</p><p>&nbsp;</p><p>July 15: Reporting By Financial Institutions And Exchanges</p><p>&nbsp;</p><p>July 15 is primarily a compliance date for regulated entities rather than individual taxpayers. Financial institutions, stock exchanges, authorised dealers, and certain other reporting entities must submit their required transaction reports by this date. This also includes the issuance of Form 132 certificates for specified taxes deducted in May 2026. While individual filers are not directly affected, this deadline feeds into the pre-filled data available in their ITR forms — making it relevant to anyone who expects their investment or banking income to appear automatically in their tax return.</p><p>&nbsp;</p><p>July 30: TDS Challan-Cum-Statement</p><p>&nbsp;</p><p>Any individual or entity that deducted tax on payments made during June 2026 must file the corresponding challan-cum-statement by July 30. This is a separate filing from the standard TDS return, and it applies in specific categories of transactions. Missing this date triggers its own penalties under the Income Tax Act and can create compliance mismatches that surface later during scrutiny.</p><p>&nbsp;</p><p>July 31: ITR Filing For Salaried And ITR-2 Filers</p><p>&nbsp;</p><p>The primary deadline most taxpayers know — July 31, 2026 is the last date to file income tax returns for FY 2025-26 for individuals and HUFs filing ITR-1 or ITR-2. This covers salaried employees, pensioners, and investors with capital gains or multiple house properties. Missing this deadline means a late fee of Rs 5,000 for taxpayers with income above Rs 5 lakh, or Rs 1,000 for those below the Rs 5 lakh threshold. Interest at 1 percent per month also accrues on any outstanding tax under Section 234A. Critically, taxpayers who miss July 31 also lose the ability to carry forward losses — such as capital losses or losses from house property — to set off against income in future years. The right to carry forward losses is available only if the return is filed on time.</p><p>&nbsp;</p><p>July 31: TDS And TCS Quarterly Returns, Plus Special Forms</p><p>&nbsp;</p><p>The second July 31 obligation is less well known but equally significant. Companies must file their TDS and TCS returns for the April to June 2026 quarter by this date, covering Forms 138, 140, 142, and 144. A range of special forms are also due on July 31: Form 10E for claiming salary arrear relief under Section 89, Form 10BA for deduction of rent paid, Form 10H for foreign income, and Forms 10CCE and 10CCD for royalty and technical know-how deductions. Pension funds must also submit their required reporting through Form 175 by this date. Each of these has its own penalty structure under the Income Tax Act for late or non-filing.</p><p>&nbsp;</p><p>Do Not Wait Till July 31</p><p>&nbsp;</p><p>With five separate compliance milestones spread across July, the safest approach is to treat July 7 as the month's opening gun — not July 31 as the finish line. For employers and businesses, missing the TDS deposit on July 7 is often more immediately damaging than missing the ITR deadline at the end of the month, since it attracts penalties, disallowance of expense deductions, and prosecution risk under Section 276B of the Income Tax Act. For individual filers, begin gathering Form 16, capital gains statements, and bank interest certificates now — July 31 leaves almost no time to recover if anything is missing.</p>

July 2026 has five income tax compliance deadlines — July 7, 15, 30, and two on July 31. Missing any can trigger penalties or loss of carry-forward loss benefit. Full guide here.

Every year, Indian taxpayers treat July 31 as if it is the only income tax date that matters in the month. It is not. The July tax compliance calendar runs from the very first week of the month, and missing any of the earlier dates can create cascading problems — penalty notices, interest charges, and in some cases, the permanent loss of the right to carry forward losses to offset against future income. Here are the five income tax deadlines in July 2026 that every taxpayer, employer, and business owner needs to have on their calendar. July 7: TDS And TCS Deposits The first compliance deadline of the month falls on July 7, and it applies to anyone who deducts or collects tax at source. Tax Deducted at Source for the month of June 2026 must be deposited with the government by this date. Additionally, businesses that have been permitted by their Assessing Officer to make quarterly TDS deposits — covering the April to June 2026 quarter — must also deposit by July 7. This date also covers the upload of declarations received from buyers in Form 127 during June 2026, and declarations received from recipients in Form 121 for the quarter ending June 2026. July 15: Reporting By Financial Institutions And Exchanges July 15 is primarily a compliance date for regulated entities rather than individual taxpayers. Financial institutions, stock exchanges, authorised dealers, and certain other reporting entities must submit their required transaction reports by this date. This also includes the issuance of Form 132 certificates for specified taxes deducted in May 2026. While individual filers are not directly affected, this deadline feeds into the pre-filled data available in their ITR forms — making it relevant to anyone who expects their investment or banking income to appear automatically in their tax return. July 30: TDS Challan-Cum-Statement Any individual or entity that deducted tax on payments made during June 2026 must file the corresponding challan-cum-statement by July 30. This is a separate filing from the standard TDS return, and it applies in specific categories of transactions. Missing this date triggers its own penalties under the Income Tax Act and can create compliance mismatches that surface later during scrutiny. July 31: ITR Filing For Salaried And ITR-2 Filers The primary deadline most taxpayers know — July 31, 2026 is the last date to file income tax returns for FY 2025-26 for individuals and HUFs filing ITR-1 or ITR-2. This covers salaried employees, pensioners, and investors with capital gains or multiple house properties. Missing this deadline means a late fee of Rs 5,000 for taxpayers with income above Rs 5 lakh, or Rs 1,000 for those below the Rs 5 lakh threshold. Interest at 1 percent per month also accrues on any outstanding tax under Section 234A. Critically, taxpayers who miss July 31 also lose the ability to carry forward losses — such as capital losses or losses from house property — to set off against income in future years. The right to carry forward losses is available only if the return is filed on time. July 31: TDS And TCS Quarterly Returns, Plus Special Forms The second July 31 obligation is less well known but equally significant. Companies must file their TDS and TCS returns for the April to June 2026 quarter by this date, covering Forms 138, 140, 142, and 144. A range of special forms are also due on July 31: Form 10E for claiming salary arrear relief under Section 89, Form 10BA for deduction of rent paid, Form 10H for foreign income, and Forms 10CCE and 10CCD for royalty and technical know-how deductions. Pension funds must also submit their required reporting through Form 175 by this date. Each of these has its own penalty structure under the Income Tax Act for late or non-filing. Do Not Wait Till July 31 With five separate compliance milestones spread across July, the safest approach is to treat July 7 as the month's opening gun — not July 31 as the finish line. For employers and businesses, missing the TDS deposit on July 7 is often more immediately damaging than missing the ITR deadline at the end of the month, since it attracts penalties, disallowance of expense deductions, and prosecution risk under Section 276B of the Income Tax Act. For individual filers, begin gathering Form 16, capital gains statements, and bank interest certificates now — July 31 leaves almost no time to recover if anything is missing.

<p>Most taxpayers only know about the July 31 ITR filing deadline — but there are four other income tax compliance dates in July 2026 that affect businesses, employers, financial institutions, and salaried individuals alike. Missing any one of them can trigger penalties, interest charges, or loss of the right to carry forward tax losses.</p>

5 income tax deadlines in July 2026 you cannot miss

Union Budget 2026 announces a major relief for taxpayers and businesses by reducing the TDS (Tax Deducted at Source) rate from 5% to 2%, with no stipulation on the amount. This move is expected to ease compliance, boost liquidity, and encourage transactions across sectors.

Budget 2026: TDS Rate Reduced from 5% to 2% Without Any Limit

<div data-olk-copy-source="MessageBody">Thinking of splurging on a designer handbag or a helicopter joyride? The taxman wants a piece too.</div>
<div data-olk-copy-source="MessageBody"></div>
<div>In a move aimed at tightening the net around big-ticket spending, the Central Board of Direct Taxes (CBDT) has implemented a new rule mandating 1% Tax Collected at Source (TCS) on luxury goods priced above ₹10 lakh, effective April 22, 2025.</div>
<div>
<blockquote class="twitter-tweet publive-iframes-block publive-Twitter-block" contenteditable="false" width="600" height="400" id="PL_blockquote_block-m9uw57ug-g0d744bm-fjo1m45r">
<p dir="ltr" lang="en">📢CBDT Notification Alert!<br><br>➡️New rules issued for Tax Collection at Source (TCS) on the purchase of certain goods.<br><br>✅Notification S.O. 1825(E) dated 22.04.2025 published in <a href="https://t.co/wgrnm5QBDw">https://t.co/wgrnm5QBDw</a><br><br>🔗The Notification can be accessed at:<a href="https://t.co/6GAXN2t5RS">https://t.co/6GAXN2t5RS</a> <a href="https://t.co/zoRIH6NkXd">pic.twitter.com/zoRIH6NkXd</a></p>
&mdash; Income Tax India (@IncomeTaxIndia) <a href="https://twitter.com/IncomeTaxIndia/status/1914916079169647092?ref_src=twsrc%5Etfw">April 23, 2025</a></blockquote>
</div>
<div>
<h2><strong><span data-olk-copy-source="MessageBody">What Will Attract the New 1% TCS?</span></strong></h2>
<div>The following luxury items are covered under the new rule if priced above ₹10 lakh:</div>
<ul>
<li>
<div>Luxury wristwatches<br><br></div>
</li>
<li>
<div>Paintings, sculptures, antiques<br><br></div>
</li>
<li>
<div>Collectables like coins and stamps<br><br></div>
</li>
<li>
<div>Premium vehicles: yachts, helicopters, rowing boats, canoes<br><br></div>
</li>
<li>
<div>High-end sunglasses<br><br></div>
</li>
<li>
<div>Luxury handbags and purses<br><br></div>
</li>
<li>
<div>Designer footwear<br><br></div>
</li>
<li>
<div>Golf kits and ski wear<br><br></div>
</li>
<li>
<div>Home theatre systems<br><br></div>
</li>
<li>
<div>Horses used in racing or polo<br><br></div>
</li>
</ul>
<div>For example, if you're purchasing a designer watch worth ₹15 lakh, you&rsquo;ll now pay an additional ₹15,000 as TCS. The seller collects this and deposits it with the Income Tax Department against your PAN.</div>
<div><span></span></div>
<h2><strong>What is TCS?</strong></h2>
<div>Tax Collected at Source (TCS) is a mechanism where the seller collects tax from the buyer during a high-value transaction. This ensures the government gets early visibility on luxury consumption and helps widen the tax base.</div>
<div><span></span></div>
<h2><strong>How Do Buyers Claim It?</strong></h2>
<div>TCS paid will be reflected in your Form 26AS, which is your tax passbook. It can be claimed as credit during Income Tax Return (ITR) filing.</div>
<div><span></span></div>
<h2><strong>Part of a Larger Reform</strong></h2>
<div>The provision for this TCS was introduced in the Finance Act, 2024, during the Union Budget. It aligns with broader reforms aimed at simplifying TDS and TCS rules, which took effect on April 1, 2025. These reforms are designed to reduce compliance burdens for ordinary taxpayers and traders by making high-value financial transactions, such as foreign remittances, business deals, and now luxury spending, more transparent and efficient.</div>
<div>The government believes such targeted levies will foster a more equitable tax regime and help India align with global standards of tax surveillance and compliance.According to two official notifications issued by the CBDT&mdash;one specifying the goods and another outlining the threshold and tax rate&mdash;sellers are now required to collect 1% TCS from buyers at the time of payment. This tax will be levied on the entire transaction amount exceeding ₹10 lakh.<br><br><a href="https://x.com/IncomeTaxIndia/status/1914916079169647092"></a></div>
</div>

Business & Economy: Starting April 22, 2025, a 1% TCS will apply on luxury goods above ₹10 lakh, including items like yachts and designer handbags. This aims to enhance tax transparency and monitor high-value purchases.

Thinking of splurging on a designer handbag or a helicopter joyride? The taxman wants a piece too. In a move aimed at tightening the net around big-ticket spending, the Central Board of Direct Taxes (CBDT) has implemented a new rule mandating 1% Tax Collected at Source (TCS) on luxury goods priced above ₹10 lakh, effective April 22, 2025. 📢CBDT Notification Alert! ➡️New rules issued for Tax Collection at Source (TCS) on the purchase of certain goods. ✅Notification S.O. 1825(E) dated 22.04.2025 published in https://t.co/wgrnm5QBDw 🔗The Notification can be accessed at:https://t.co/6GAXN2t5RS pic.twitter.com/zoRIH6NkXd — Income Tax India (@IncomeTaxIndia) April 23, 2025 What Will Attract the New 1% TCS? The following luxury items are covered under the new rule if priced above ₹10 lakh: Luxury wristwatches Paintings, sculptures, antiques Collectables like coins and stamps Premium vehicles: yachts, helicopters, rowing boats, canoes High-end sunglasses Luxury handbags and purses Designer footwear Golf kits and ski wear Home theatre systems Horses used in racing or polo For example, if you're purchasing a designer watch worth ₹15 lakh, you’ll now pay an additional ₹15,000 as TCS. The seller collects this and deposits it with the Income Tax Department against your PAN. What is TCS? Tax Collected at Source (TCS) is a mechanism where the seller collects tax from the buyer during a high-value transaction. This ensures the government gets early visibility on luxury consumption and helps widen the tax base. How Do Buyers Claim It? TCS paid will be reflected in your Form 26AS, which is your tax passbook. It can be claimed as credit during Income Tax Return (ITR) filing. Part of a Larger Reform The provision for this TCS was introduced in the Finance Act, 2024, during the Union Budget. It aligns with broader reforms aimed at simplifying TDS and TCS rules, which took effect on April 1, 2025. These reforms are designed to reduce compliance burdens for ordinary taxpayers and traders by making high-value financial transactions, such as foreign remittances, business deals, and now luxury spending, more transparent and efficient. The government believes such targeted levies will foster a more equitable tax regime and help India align with global standards of tax surveillance and compliance.According to two official notifications issued by the CBDT—one specifying the goods and another outlining the threshold and tax rate—sellers are now required to collect 1% TCS from buyers at the time of payment. This tax will be levied on the entire transaction amount exceeding ₹10 lakh.

New Tax Rules Alert: Buying Luxury? Say Hello to 1% TCS on ₹10 Lakh+ Items

<p>Indian Finance Minister Nirmala Sitharaman on Saturday (Feb 1) announced measures to rationalise TDS to ease the compliance burden of Indian citizens.</p>
<p>Presenting her 8th consecutive budget under the Narendra Modi government, Sitharaman said the tax proposals for the financial year 2025-26 are guided by income tax reforms for the middle class, TDS rationalisation and easing the compliance burden.</p>
<p><strong>Also read | <a href="https://www.wionews.com/india-news/union-budget-2025-govt-to-set-up-daycare-cancer-centres-in-all-district-hospitals-8681148">Union Budget 2025: Govt to set up daycare cancer centres in all district hospitals</a></strong></p>
<h2><strong>TDS proposals in Budget 2025-26</strong></h2>
<p>Sitharaman on Saturday announced the rationalisation of the TDS (Tax Deduction at Source) regime to ease the compliance burden. She proposed a major relief for the middle class in India with the exemption of TCS (tax collected at source) for remittances for education purposes in cases where education loan is taken from specified financial institutions.</p>
<p>Meanwhile, for senior citizens, the limit for tax deduction on interest income would be doubled to Rs 1 lakh. Meanwhile, the limit for TDS on rent is proposed to be increased to Rs 6 lakh from the ₹2.40 lakh limit previously.</p>
<p><strong>Also read | <a href="https://www.wionews.com/india-news/union-budget-2025-fm-sitharaman-exempts-basic-custom-duty-on-lifesaving-drugs-and-medicines-8680995">Union Budget 2025: 36 life saving drugs, medicines fully exempted from custom duty</a></strong></p>
<p>The government will also increase the limit of TCS on remittances under RBI's liberalised remittance scheme from Rs 7 lakh to Rs 10 lakh. Besides, the budget extends the period of incorporation by five years for startups to avail of tax benefits.</p>
<p>Reforms are not destinations but means to achieve good governance for the people and economy, said the Indian finance minister, adding that the new I-T bill will be half of the current volume, clear and direct in wording.</p>
<p><em>(With inputs from agencies)</em></p>

India News | Business & Economy: Finance Minister Nirmala Sitharaman's latest budget rationalises TDS, offering relief through tax exemptions and increased deduction limits for interest income and rent.

Indian Finance Minister Nirmala Sitharaman on Saturday (Feb 1) announced measures to rationalise TDS to ease the compliance burden of Indian citizens. Presenting her 8th consecutive budget under the Narendra Modi government, Sitharaman said the tax proposals for the financial year 2025-26 are guided by income tax reforms for the middle class, TDS rationalisation and easing the compliance burden. Also read | Union Budget 2025: Govt to set up daycare cancer centres in all district hospitals TDS proposals in Budget 2025-26 Sitharaman on Saturday announced the rationalisation of the TDS (Tax Deduction at Source) regime to ease the compliance burden. She proposed a major relief for the middle class in India with the exemption of TCS (tax collected at source) for remittances for education purposes in cases where education loan is taken from specified financial institutions. Meanwhile, for senior citizens, the limit for tax deduction on interest income would be doubled to Rs 1 lakh. Meanwhile, the limit for TDS on rent is proposed to be increased to Rs 6 lakh from the ₹2.40 lakh limit previously. Also read | Union Budget 2025: 36 life saving drugs, medicines fully exempted from custom duty The government will also increase the limit of TCS on remittances under RBI's liberalised remittance scheme from Rs 7 lakh to Rs 10 lakh. Besides, the budget extends the period of incorporation by five years for startups to avail of tax benefits. Reforms are not destinations but means to achieve good governance for the people and economy, said the Indian finance minister, adding that the new I-T bill will be half of the current volume, clear and direct in wording. (With inputs from agencies)

Indian Union Budget 2025-26: Key TDS changes announced this year

<p>Are you a salaried professional who is now calculating how much you will benefit from the revisions proposed in the Tax Deducted at Source&nbsp;(TDS) rates in the Budget 2024 by India's Finance Minister Nirmala Sitharaman and wondering if your decision to make investments in&nbsp; mutual funds was right or not?</p>

<p>The TDS changes introduced in Union Budget 2024 are significant and are likely to have an impact on the salaried class. So, let's try to understand what exactly are the changes and will it rattle or secure the working class' personal pockets.</p>

<h2><strong>In Salaries&nbsp;</strong></h2>

<p>The salaried employees have now been empowered to claim credit for Tax Collected at Source (TCS) against the deduction of TDS on their salaries. What does this mean?&nbsp;</p>

<p>TCS, which stands for the tax collected at source, is paid by the buyer to the seller and is then deposited with the tax authorities. This is collected on specific goods/services.</p>

<p><strong>Also Read:&nbsp;</strong><a href="https://www.wionews.com/business-economy/money-wise-planning-to-redeem-your-mutual-fund-units-what-every-indian-investor-should-know-742407">Money-Wise: Planning to redeem your mutual fund units? What every Indian investor should know</a></p>

<p>TDS, which stands for the tax deducted at source, is the tax deducted by those making payments - in this case the employer - in advance for the payments to be made to you. The employer deducts TDS on the basis of the tax slab, the tax-exempted investments made by you and any other income.</p>

<p>Now, all the employees can claim the TCS paid by them to the employers and directly reduce the TDS amount to be deducted by the employer from the salary.&nbsp;</p>

<p>Also, if a refund is due because of the TCS, it will be adjusted against TDS on the income of the individual taxpayer.</p>

<h2><strong>In Mutual Funds</strong></h2>

<p>In the case of the mutual funds, the 20 per cent TDS which was charged on the repurchase of units by UTI (Unit Trusts of India) or mutual funds has been withdrawn.</p>

<p>Before October 1, 2024, 20 per cent TDS was levied on the mutual fund redemptions and this amount was deducted at the source before the rest of the money was transferred to the investor.</p>

<p>After October 1, 2024, the people investing in the mutual funds will not face any such deduction and the entire redemption amount, after deducting the expense ratio, will be credited to them. However, they will be required to pay capital gains tax on the profit made in their income tax return.</p>

<p><strong>Watch:&nbsp;Budget 2024: Post-budget, Rupee crashes to a record low, Indian stocks tank</strong></p>

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/budget-2024-post-budget-rupee-crashes-to-a-record-low-indian-stocks-tank-743438/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

<p>While removing TDS on the repurchase of units, the TDS on long-term capital gains, which is more than Rs. 1.25 lakh, has been increased from 10 per cent to 12.5 per cent.&nbsp;</p>

<p>Also, there has been an increase in the LTCG tax rate for all financial and non-financial assets from 10 per cent to 12.5 per cent. On some specific financial assets, the Higher Short-Term Capital Gains (STCG) tax has been revised from 15 per cent to 20 per cent.</p>

<p>So, it's not all good news for mutual fund investors, who may save some part of their pocket but are likely to lose part of their profits, especially if they have a large profit share.</p>


Are you a salaried professional who is now calculating how much you will benefit from the revisions proposed in the Tax Deducted at Source (TDS) rates in the Budget 2024 by India's Finance Minister Nirmala Sitharaman and wondering if your decision to make investments in mutual funds was right or not?

Are you a salaried professional who is now calculating how much you will benefit from the revisions proposed in the Tax Deducted at Source (TDS) rates in the Budget 2024 by India's Finance Minister Nirmala Sitharaman and wondering if your decision to make investments in mutual funds was right or not? The TDS changes introduced in Union Budget 2024 are significant and are likely to have an impact on the salaried class. So, let's try to understand what exactly are the changes and will it rattle or secure the working class' personal pockets. In Salaries The salaried employees have now been empowered to claim credit for Tax Collected at Source (TCS) against the deduction of TDS on their salaries. What does this mean? TCS, which stands for the tax collected at source, is paid by the buyer to the seller and is then deposited with the tax authorities. This is collected on specific goods/services. Also Read: Money-Wise: Planning to redeem your mutual fund units? What every Indian investor should know TDS, which stands for the tax deducted at source, is the tax deducted by those making payments - in this case the employer - in advance for the payments to be made to you. The employer deducts TDS on the basis of the tax slab, the tax-exempted investments made by you and any other income. Now, all the employees can claim the TCS paid by them to the employers and directly reduce the TDS amount to be deducted by the employer from the salary. Also, if a refund is due because of the TCS, it will be adjusted against TDS on the income of the individual taxpayer. In Mutual Funds In the case of the mutual funds, the 20 per cent TDS which was charged on the repurchase of units by UTI (Unit Trusts of India) or mutual funds has been withdrawn. Before October 1, 2024, 20 per cent TDS was levied on the mutual fund redemptions and this amount was deducted at the source before the rest of the money was transferred to the investor. After October 1, 2024, the people investing in the mutual funds will not face any such deduction and the entire redemption amount, after deducting the expense ratio, will be credited to them. However, they will be required to pay capital gains tax on the profit made in their income tax return. Watch: Budget 2024: Post-budget, Rupee crashes to a record low, Indian stocks tank While removing TDS on the repurchase of units, the TDS on long-term capital gains, which is more than Rs. 1.25 lakh, has been increased from 10 per cent to 12.5 per cent. Also, there has been an increase in the LTCG tax rate for all financial and non-financial assets from 10 per cent to 12.5 per cent. On some specific financial assets, the Higher Short-Term Capital Gains (STCG) tax has been revised from 15 per cent to 20 per cent. So, it's not all good news for mutual fund investors, who may save some part of their pocket but are likely to lose part of their profits, especially if they have a large profit share.

Money-Wise: Here’s how TDS changes in Indian Budget 2024 will impact your salary, mutual fund investments

The Central Board of Direct Taxes has issued new guidelines stating that social media influencers and doctors who get freebies for sales promotions will have to pay a 10% TDS.

WION Fineprint | No More Freebies! Influencers and doctors will have to pay 10% TDS

<p>Social media influencers and doctors in India will now be subjected to Tax Deducted at Source (TDS) from July 1, for benefits received from businesses for sales promotions. The Central Board of Direct Taxes (CBDT) has issued recommendations on the new provision’s applicability. The Union Budget made provision for TDS on incomes in order to prevent tax revenue leakage by incorporating a new section, 194R into the income Tax Act, 1961. Any individual who gives a resident a benefit of more than 20,000 in a year must pay TDS of 10 per cent, NDTV reported.</p>

<p>The Joint Secretary in the Finance Ministry, Kamlesh C Varshney explained advantages which includes free medicine samples for doctors, overseas flight tickets and free tickets of Indian Premier League (IPL) of business and many more things. He stressed that these items should be revealed while submitting an income tax return and shall not be hidden as they are not being sold.&nbsp;</p>

<p><strong>Also read |&nbsp;<a href="https://www.wionews.com/india-news/upi-records-nearly-6-billion-transactions-worth-rs-10-trillion-in-may-489280">UPI records nearly 6 billion transactions worth Rs 10 trillion in May&nbsp;</a></strong></p>

<p>The section 194R applies to sellers that offer incentives in cash or any kind such as car, computer, gold coins, mobile phones in addition to discounts.&nbsp;</p>

<p>This gave a break for the customers by exempting sales discounts or cash discounts from the section, claiming if it gets included will put the seller in difficulty. &nbsp;However, if perks such as mobile was returned to the manufacturer after being used for the purpose of service like for a social media influencer, then this new rule doesn’t apply in such cases.</p>

<p><strong>Also read |&nbsp;<a href="https://www.wionews.com/india-news/5g-india-to-hold-spectrum-auction-in-july-mobile-connectivity-set-to-get-10-times-faster-488302">5G: India to hold spectrum auction in July, mobile connectivity set to get 10 times faster</a></strong></p>

<p>The CBDT specifies that if doctors receive free samples of drugs while working in a hospital, section 194R applies free distribution of samples to the hospital. In case for doctors who work as consultants for a hospital and receive free samples, TDS should be applied first to the hospital which will deduct necessary tax under the section for doctors.&nbsp;</p>

<p>According to CBDT the section doesn’t apply the benefits to if supplied to a government institution that is not engaged in business or profession such as a government hospital.&nbsp;</p>

<p><strong>WATCH WION LIVE HERE</strong></p>

<p><iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe></p>

<p>You can <strong>now write for wionews.com</strong> and be a part of the community. Share your stories and opinions with us <strong><a href="https://www.wionews.com/content-contribution-registration-form">here</a>.</strong></p>

<p><em>(With inputs from agencies)</em></p>


Social media influencers and doctors in India will now be subjected to Tax Deducted at Source (TDS) from July 1, for benefits received from businesses for sales promotions.

Social media influencers and doctors in India will now be subjected to Tax Deducted at Source (TDS) from July 1, for benefits received from businesses for sales promotions. The Central Board of Direct Taxes (CBDT) has issued recommendations on the new provision’s applicability. The Union Budget made provision for TDS on incomes in order to prevent tax revenue leakage by incorporating a new section, 194R into the income Tax Act, 1961. Any individual who gives a resident a benefit of more than 20,000 in a year must pay TDS of 10 per cent, NDTV reported. The Joint Secretary in the Finance Ministry, Kamlesh C Varshney explained advantages which includes free medicine samples for doctors, overseas flight tickets and free tickets of Indian Premier League (IPL) of business and many more things. He stressed that these items should be revealed while submitting an income tax return and shall not be hidden as they are not being sold. Also read | UPI records nearly 6 billion transactions worth Rs 10 trillion in May The section 194R applies to sellers that offer incentives in cash or any kind such as car, computer, gold coins, mobile phones in addition to discounts. This gave a break for the customers by exempting sales discounts or cash discounts from the section, claiming if it gets included will put the seller in difficulty. However, if perks such as mobile was returned to the manufacturer after being used for the purpose of service like for a social media influencer, then this new rule doesn’t apply in such cases. Also read | 5G: India to hold spectrum auction in July, mobile connectivity set to get 10 times faster The CBDT specifies that if doctors receive free samples of drugs while working in a hospital, section 194R applies free distribution of samples to the hospital. In case for doctors who work as consultants for a hospital and receive free samples, TDS should be applied first to the hospital which will deduct necessary tax under the section for doctors. According to CBDT the section doesn’t apply the benefits to if supplied to a government institution that is not engaged in business or profession such as a government hospital. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. (With inputs from agencies)

India to introduce new tax rules for social media influencers, doctors

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