Nowadays everyone is active on social media. At the same time, more than half of the people are earning money by vlogging, creating content and making videos on YouTube. If you also earn through YouTube, then you should know whether the income from YouTube is taxed in India or not?
In the last few years, YouTube has become a good means of earning. Earlier it used to be only a video-sharing platform, but with time, today it has become a big platform for content creation, where people are earning good money every day by vlogging and creating content. But, many people do not know whether the income from YouTube is taxable under the Income Tax Act 1961 or not. Today in this article, we are going to tell you about the tax applicable on income from YouTube–
Usually, income from advertisements shown on your channel, if a YouTuber sells products or does freelance work from his content, income based on your video views, comments and likes and income from providing consulting services through videos are seen as types of YouTube income.
Impact of income tax on income from YouTube
If you create content on YouTube and you earn income from it, then it is affected by income tax. This income can be categorized under other sources of income or business or professional income, but in most cases it is considered professional income. If you are a full-time content creator or YouTuber and your main source of income is YouTube, then it will be considered professional income. In this situation, your income will be taxed as per the business. If your YouTube income is more than other income, then it will be considered as professional income and will be taxed according to the business tax rates. But if YouTube is not your main source of income, then it will be considered as another source of income.
How much tax is to be paid on YouTube income?
Although there is no separate tax rate on income from YouTube. The same income tax slab rates apply to YouTube income, which are applicable to other income in India. Whether your income is considered business or professional income or other sources of income. Tax will be calculated according to your annual income.
For example, if your annual income is less than Rs 2.5 lakh, then you will not have to pay tax. If your income is Rs 2.5 lakh to Rs 5 lakh, then 5 percent tax will be levied and similar slabs will continue to apply going forward.
It is important to file ITR
If you earn by making videos on YouTube or by promoting brands, then you should file ITR every year. Even if your earnings are very less.
TDS on gifts or money received from brands
If you get gifts, money or any other benefits worth 20 thousand or more from a brand, then TDS can be deducted on it. The brand will deduct the tax and give it to the government before making payment to you and later you can claim it in ITR.
How to pay tax on YouTube earnings?
If you are earning money from ad revenue, brand deals or promotions from YouTube, then it is important that you file ITR. YouTube earnings depend on two things, first income tax and second GST.
How to pay Income Tax?
If you earn more than 2.5 lakhs a year from YouTube, then you will have to pay income tax on this income. Tax calculation in India is done according to the slab system. If you are doing YouTube as a profession or business, then your income will be considered as profession or business income.
Is GST also applicable on YouTube income?
Yes, if the YouTube earnings are more than Rs 20 lakh annually, then you will have to take GST registration. Earnings like YouTube ad revenue and brand deals are considered as services. 18 percent GST is applicable on this. You will also have to file GST returns every month or quarter.
How will tax be levied if the YouTuber is a minor?
If the YouTuber is a child, then his earnings will be added to the income of the parents. But, if the child himself is making videos, creating content through hard work and skill, then that income will be taxed only in the name of the child. It will not be added to the income of the parents.
