TDS on brand deals and freebies (including Section 194R) explained

What TDS means for creators

Tax deducted at source is tax that the payer withholds from certain payments and deposits with the government on your behalf. You then claim credit for it in your return. For creators, the payer is usually a brand, an agency or a production house.

TDS on cash payments

Fees for endorsements, appearances, shoots and similar work can attract TDS under the provisions for payments such as professional fees or contract payments, depending on how the arrangement is structured. The rate depends on the nature of the payment and on whether your PAN has been provided, and thresholds apply. Under the Income-tax Act, 2025, which has applied since 1 April 2026, these provisions are consolidated into section 393. Rates and thresholds have largely been carried over, but the section numbers are different.

TDS on benefits and perquisites

Brands often provide things other than money, such as products, hotel stays, trips, event passes or other benefits connected with a collaboration. Section 194R of the Income-tax Act, 1961 required a person providing a benefit or perquisite arising from business or profession to a resident to ensure that tax is deducted before providing it. Under the 2025 Act this provision is covered by Section 393(1). The rate is 10% of the value of the benefit, and the benefit is covered whether or not it can be converted into money.

A threshold applies, so small benefits during a year may not trigger deduction. Please check the limit in force for the year concerned. Some payers, such as certain individuals and HUFs whose business or professional turnover is within prescribed limits, are not required to deduct.

When the benefit is wholly in kind

Where the benefit is wholly or mostly in kind, the provider must ensure that the tax has been paid before releasing it. In practice this can mean that a brand asks you to pay the tax amount, or adjusts it against a cash fee. It is better to agree on this in the contract than to discover it later.

Is the benefit also taxable for you?

Whether a provider must deduct tax and whether the benefit is taxable in your hands are two separate questions. Where a benefit is received in connection with your work, its value may form part of your business or professional income. The facts of each arrangement decide the result.

What you should do

• Ask each brand how it intends to deal with TDS on both cash and non-cash benefits
• Give your correct PAN to avoid higher deduction
• Ask for deduction certificates and check them against your tax statements
• Keep a simple list of gifts, products and trips received, with their approximate value
• Raise mismatches with the payer promptly so that the quarterly TDS statements can be corrected

Why mismatches matter

If a payer deducts tax but does not report it correctly, the credit may not appear in your tax statements. Claiming credit that is not reflected can lead to a notice. Reviewing your statements before filing helps you catch such gaps early.

Our guide on tax for influencers and models covers how this fits into the rest of your return.