Does a free product need TDS?

Gifted product tax checker, free

A product a creator keeps after a review is a benefit, and benefits count for tax. Once the value of benefits one brand gives a creator in a financial year passes ₹20,000, the brand must deduct 10% TDS. A product the creator sends back isn't a benefit. Because there's no cash to deduct from, the brand pays the TDS itself, or asks the creator to, before handing the product over.

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How it works

Type the product's value: what the brand sells it for.

Choose whether the creator keeps it or returns it after the video.

Add the value of other products or benefits the same brand gave this financial year.

Questions

Do influencers pay tax on free products? A product the influencer keeps is a benefit and counts as income. The brand must deduct 10% TDS once the year's benefits it gives that person pass ₹20,000 (old section 194R, now section 393 of the Income-tax Act, 2025). A product returned after use isn't a benefit (CBDT Circular 12/2022).

Who pays the TDS on a gifted product? The brand is responsible for making sure it's paid before the product is released: it can pay it itself or ask the creator to. Either way it shows against the creator's PAN.

Sources

Checked against the sources below on 15 October 2026. Tax rules change; for your own return, confirm with a CA or tax adviser.

Income-tax Act, 2025, s.393(1): benefits and perquisites (old s.194R, CBDT Circular 12/2022), TDSMAN, August 2026: https://blog.tdsman.com/2026/08/tds-on-benefit-or-perquisite-section-3931-194r/

RSM India, TDS rate chart (Finance Act 2025 thresholds): https://www.rsm.global/india/insights/tax-insights/tds-rate-chart