A Complete Tax Guide For Indian YouTubers

A Complete Tax Guide For Indian YouTubers

YouTube is the biggest digital content creation platform in the world. This social media platform is the king of all content creation platforms available worldwide.

Millions of brands and individuals worldwide dedicate their wealth of time and resources to accomplishing their financial and corporate dreams.

Various factors, including the COVID-19 Pandemic, have multiplied the number of brands and individuals nesting their eggs, resources, and time to bring their corporate and financial dreams to life through YouTube.

The platform receives 467 million views from India every hour. India is the biggest content consumer in the world on this video platform.

India has developed a massive community of content creators making money from YouTube. Even Indian brands leverage YouTube’s potential to reach their target audience beyond geographical boundaries.

Countless Indians are making money through YouTube. Many of them earn millions every year. This innovative career and business growth trend caught the attention of India’s Central Government and Taxation Department.

Even the IRS (Internal Revenue System), a revenue service for the United States Federal Government, has noticed it.

All Indians have to pay a certain amount of tax on their income from YouTube.

This post is to guide you about it.

Tax Rules For YouTubers and Influencers In India

Tax Rules For YouTubers and Influencers In India

The Central Government of India taxes the income of Indian YouTubers under the following two circumstances:

  • According to the head of profits and gains from business and profession.
  • According to the slab rates in force for individual influencers.

What happens if your annual total gross income exceeds the threshold of ten million in Indian rupees?

According to the Income Tax Act, 1961, the Income Tax Department of India will audit your account books according to section 44AB.

The Central Government of India has increased this threshold limit to 100 million Indian rupees.

This condition is applicable only if the aggregate of every cash payment you receive throughout a financial year does not exceed the limit of 5%.

What about TDS (Tax Deducted At Source)

TDS (Tax Deducted At Source)

Under the Income Tax Act, 1961, a YouTuber and influencer may have to pay TDS on every receipt of payment. The rate of TDS applicable will depend on the following:

  • The nature of the service provided.
  • The nature of financial transactions you enter into

You can download form 26AS to check your amount of tax dedicated at the source.

What should you do if your gross turnover is below Rs. 1 crore?

You should act wise and comply with normal tax provisions for the following:

  • Calculation of taxes.
  • Maintenance of accounting books.

What should you do if your gross turnover exceeds Rs. 1 crore?

Act wise! Do the following:

Make sure you fulfill all bookkeeping requirements according to Rule 6A.

Hire an experienced and certified CA (Chartered Accounts) under section 44AB of the Income Tax Act, 1961, to get your accounts audited.

What About GST (Goods And Services Tax)?

Do YouTubers have to pay this tax?

“Yes” is the only answer to this million-dollar question.
All services offered by YouTubers fall in the category of OIDAR (Online Information and Database Access or Retrieval) under Goods And Services Tax (GST), India.

You must get yourself registered under GST If…

  • You are a YouTuber or an influencer making more than 2 million (INR) in a financial year.
  • You are a YouTuber or an influencer living in a special category state, and you are making more than 1 million (INR) in a financial year.
  • If you are a YouTuber or an influencer providing services to a registered recipient in a different state. In this scenario, registration is mandatory for you. Your total turnover does not matter.

Rates And Types of GST Applicable On YouTubers’ Income:

Two different types of GST and rates apply to YouTubers’ income. For example:

  • 9% CGST (Central Goods And Services Tax)
  • 9% SGST (State Goods And Services Tax)

9% CGST is applicable according to the rules of the Central Government of India.
Your state government also charges 9% SGST (State Goods And Services Tax).

This means that YouTubers and influencers in India pay 18% GST on their income.

Again, it depends on the category of the knowledge or service supply:

  • Intrastate
  • Interstate

Are You A YouTuber Or An Influencer Exporting Your Services?

YouTuber Or An Influencer

You may have to pay 0% GST for this. In this case, you will have the following two options to export your services:

  • Furnish a letter of undertaking (LUT).
  • Furnish a letter of undertaking (LUT).

IGST can be claimed back as a refund later.

Google Inc. and Google Adsense are not located in India, and the supplies are zero-rated. These are services that most YouTubers in the world use.

What About Vloggers?

Vloggers

Vloggers are also obliged to net taxable income after the following:

  • Consideration of all business-related expenses.
  • Consideration of depreciation according to the income tax slab.
  • Considering all the business expenses and depreciation as per the income tax slab.

Vloggers can claim three expenses while filing an ITR (Income Tax Return).

Expenses about earning and income are deductible. The list includes the following:

  • Internet bills
  • The cost of the computer’s purchase and maintenance.
  • The cost of camera maintenance and purchase.
  • The cost of content creation and uploading.

The income tax law of India allows YouTubers to claim 40% depreciation on the camera and 15% on the car as an expense.

The government may allow you to claim the balance amount as an expenditure in the future.

Do you vlog or run your YouTube channel as a hobby instead of a profession or business? In this case, you opt to offer your income under IFOS (Income From Other Source) for tax, if your earnings are not huge.

This is not the end of the knowledge all Indian YouTubers need about the concept. You to know more. The list includes the following:

  • Tax requirements to make money from YouTube.
  • YouTube Tax/Accounting for influencers in India.
  • Why do Indian YouTubers have to pay tax on their income?
  • Bookkeeping tips for YouTubers.
  • What is the importance of Bookkeeping in the success of your YouTube channel?
  • Tax Deduction opportunities for YouTubers in India.
  • Top Accounting tips for Indian YouTubers.
  • Top tax filing tips for YouTubers in India.
  • The best tax guide Indian YouTube bloggers need.
  • Ways to determine your taxation liabilities in India.

You will learn about it through our future articles related to the concept. We suggest you keep coming back here. You will get the hang of these concepts.

The most important thing you will get is the full bang of the time you will spend learning about it.

Keep coming back here.

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  • My creative juices always flow like free-flowing water. I love to research in-depth about unique things before beating the keyboard for content production dedicated to making learning about anything meaningful, informative, and entertaining in the best possible way for readers.

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