In today's time, YouTube, Instagram and other social media platforms have become a major source of income for many people. People are now earning money through sponsored posts, affiliate marketing, fan support and other digital methods. But keep in mind, this income is not tax-free. In India, it is necessary to declare this type of income while filing ITR and it is also taxable.
Content creators earn money in many ways, like.
If you are earning by creating regular content, then it is considered as business or profession income. That means your total income will be taxed as per your tax slab. If this is just an occasional income, then in some cases it can also be considered as income from other sources.
Influencers often receive gifts like phones, clothes or cosmetics from brands. If you keep them with you, their value can also be considered as your income. If the value of such gifts is more than Rs 20,000, the company can also deduct 10% TDS.
If your annual income exceeds Rs 20 lakh, you will have to get GST registration. After this, about 18% GST will have to be imposed on brand deals and promotions.
As easy as earning from social media seems, tax rules are equally important. Filling ITR correctly and following the rules can save you from future troubles.
