New Delhi: YouTube has emerged as one of the greatest symbols of the creative economy. It has brought in a revolution in the criteria of viewership in India. People prefer to watch content on YouTube nowadays; thereby, India has witnessed a surge of content creators when it comes to online content. The income generated from YouTube has increased manifold. Thereby, the government felt the need to bring the income generated from it under its income tax domain. The article explores how to file an income tax return for the income generated from it.
The income generated from advertisement on videos, product promotion, brand deals, and product endorsement through content comes under the purview of income tax. Additionally, the income generated through the likes, comments, and views comes under the income tax too.
YouTube Taxable income
The Income Tax Act is applicable to the income generated by making content on YouTube. Generally, it is considered professional income. The main source of income would be considered business income if YouTube is the major source of income, whereas if YouTube is an additional business, then the income is to be considered from other sources.
There exists no separate tax for the income generated from YouTube. However, it depends on the annual income of the person. If the income from YouTube comes under the mandated tax slabs, then the income tax must be levied on it as per the slab.
It is necessary to file an income tax return (ITR) every year. The exercise is to be done to make a record of the income of the person. If a creator receives an amount or gift of Rs 20,000 or more from a brand, then the government takes a TDS (Tax Deducted at Source) on it. The brand will, first, deduct the tax and give it to the government, and later a creator can claim it in ITR.
If the annual income earnings from YouTube are more than 20 lakhs, then GST registration is mandatory. Brand deals and ad revenue are classified as services, and 18% GST is levied on them. Additionally, it would be necessary to file GST returns every month or quarter.
In the event that the content creator is a minor and is generating active income from YouTube, then that income will be taxed in the name of the child. If the income generated by the child is with the help of parents or is passive in nature, then the income would be added to the total taxed income of the parent.
The article aims to explain how Indian YouTubers file income tax returns (ITR) on earnings from ads, sponsorships, and brand deals. It covers the tax implications of different income streams, including the Goods and Services Tax (GST) for those earning over ₹20 lakhs annually. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
