It is to be noted here that influencers and other such people who receive free items from companies are already subjected to pay taxes for receiving them
Social media influencers will soon have to declare their brand associations, otherwise, heavy penalties will be charged to them, sources told CNN-News18. These guidelines are likely to be issued by the central government in 10 days.
The decision was taken to caution and protect the consumer from any kind of false claims. “Anyone who is a social media influencer and pushing any particular brand will now have to come clean,” sources said.
It is to be noted here that influencers and other such people who receive free items from companies are already subjected to pay taxes for receiving them The guidelines issued by the Income Tax department came into effect on July 1 this year. The Central Board of Direct Taxes in its guidelines issued for these new rules had notified that those who receive benefits will have to pay TDS at the rate of 10 per cent under the new tax rules.
Under the new rule, social media influencers will be liable to pay 10 per cent TDS if they receive a product like a car, mobile, outfit, cosmetics, etc, and retain the same. However, if the product is returned to the company after using the services, it will not fall under Section 194R.
