Instantly check if TDS applies on gifts, free products, or dealer incentives — and calculate the exact amount under Section 194R (now Section
If your business gives free products, sponsored trips, gadgets, or any other non-cash perk to an influencer, dealer, or professional, the Section 194R TDS Calculator tells you instantly whether you owe TDS on it — and how much. This is the same rule people search for as "TDS on gifts to influencers" — under Section 194R, the obligation is easy to miss because no cash actually changes hands.
The Section 194R TDS Calculator checks whether TDS on perquisites applies when you give a benefit — in cash or in kind — to a resident in connection with their business or profession. It's built for brands and agencies running influencer campaigns, businesses giving dealer or distributor incentives, pharma companies giving free samples to doctors, and the CAs and consultants who advise them on influencer tax in India. Enter the value of what you're giving, and the tool applies the ₹20,000 threshold and 10% rate automatically.
Aggregate Value = Value of Current Benefit + Other Benefits Already Given to the Same Person This FY
If Aggregate Value ≤ ₹20,000:
No TDS Required
If Aggregate Value > ₹20,000:
TDS = 10% × Taxable Amount
Where Taxable Amount =
Full Aggregate Value (if this is the transaction that first crosses ₹20,000)
Current Value Only (if ₹20,000 was already crossed earlier)
This is based on Section 194R of the Income-tax Act, 1961, read with CBDT Circular No. 12 of 2022 dated 16 June 2022. From FY 2026-27, the same rule sits under Section 393(1) Sl.8(iv) of the Income-tax Act, 2025 — see our TDS Rate Chart for FY 2026-27 for the full old-vs-new section mapping. Individuals or HUFs are exempt from deducting this TDS if their turnover was under ₹1 crore (business) or ₹50 lakh (profession) in the preceding FY — the same threshold used in our Section 44AB Tax Audit Applicability Checker.
A skincare brand sends a content creator a hamper of products worth ₹15,000 in April, which the creator keeps. In August, the brand sends a second hamper worth ₹12,000.
April transaction:
August transaction:
The brand must deduct ₹2,700 before handing over the August hamper, deposit it with the government, and issue a TDS certificate to the creator — even though the ₹15,000 April hamper already reached them without any deduction.
Section 194R itself hasn't changed for FY 2026-27 — the ₹20,000 threshold and 10% rate are unchanged. What has changed is the reference: from 1 April 2026, this provision moves to Section 393 of the Income-tax Act, 2025, under its own sub-clause and payment code for TDS returns . If you also handle partner payouts, note that firms and LLPs face a parallel ₹20,000-threshold TDS rule on partner remuneration under Section 194T — don't mix the two up when reconciling your books.
Yes, if the influencer keeps the product. CBDT has clarified that products given for a shoot or review, which the influencer later returns to the brand, are not treated as a benefit or perquisite, so no TDS applies in that case.
The value of TDS should ideally be recovered before the benefit is handed over — for example, the brand may ask the recipient to pay the TDS amount in cash, or deduct it from any other cash component of the deal.
No. CBDT has clarified that GST is excluded when arriving at the value of a benefit or perquisite for TDS purposes under this section.
Yes. Individuals or HUFs are not required to deduct this TDS if their business turnover was below ₹1 crore, or professional receipts below ₹50 lakh, in the immediately preceding financial year.
No, only the section reference has changed — it is now Section 393(1) Sl.8(iv), effective 1 April 2026. The ₹20,000 threshold and 10% rate remain the same.
The brand can face disallowance of that expense in its own tax computation, plus interest and penalties for non-deduction — and may still be treated as an "assessee in default" for the unpaid tax.
No, they're separate. Section 194R TDS is deducted by the brand giving the gift before it's handed over. GST, if the influencer is registered, is a different liability the influencer charges and pays on their own service income — the two don't offset each other.
Calculations verified by our team including CA Anita Patil. View our full accuracy policy and meet the team →
For informational purposes only. Results are estimates based on the inputs you provide and the rules in effect for the period shown, and are not tax, legal or financial advice. Verify figures against the relevant official source and consult a qualified professional before acting on them. Accuracy & limitations
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