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Tax for Social Media Influencers

Tax for Social Media Influencers

Social media users are growing at a rapid pace, so are social media influencers! However, is there any tax for social media influencers in India? Read all about it here.

How do social media influencers make money?

As with many parts of the mass media and internet space, influencers have several options for making money. They generally choose based on niche, individual talents, opportunities presented, and more. Besides this, there are options that require larger levels of commitment that an influencer might not be interested in.

  • Affiliate Marketing
  • Display advertising
  • Sponsored posts
  • Photo and video sales
  • Merchandise
  • E-books
  • Guest blogging

& much more…

What’s the tax for social media influencers income?

Influencers are taxed in the same manner as any other individual or organisation that earns money. Influencers, other than companies and partnerships, are classed as self-employed individuals, or persons engaged in trade or business as sole proprietors for tax purposes. 

Just like a company’s earning, Influencers income is also regarded as an organisational’s earning.

. Any amount received, whether in monetary forms or others — from YouTube partner programs, sponsored social and blog posts, display advertising, for becoming a brand representative or an ambassador, affiliate marketing, co-creating project lines, promoting own products, photo and video sales, digital courses, subscriptions, e-books, podcasts, and weblogs — are all examples of business income that are subject to regular income tax. 

Earnings of influencers are subject to income tax under the heading “Profits and Gains from Business and Profession.” Individual influencers’ earnings are taxed at current slab rates –

Influencers who earn more than Rs.1 crore in gross total revenue in a financial year are subject to a tax audit of their books. If not more than 5% of all payments as well as 5% of all receipts in that financial year are made in cash, the maximum has been raised to Rs. 10 crores. Tax deducted at source (TDS) may apply to payments given to influencers under the Income Tax Act. The TDS rate will be determined by the nature of the service provided or the type of transaction made (TaxSlayer).

If any influencer’s turnover exceeds Rs.20 lakh in a financial year, or Rs.10 lakh if they are based in a special category state, they must register under the GST law. GST is charged at a rate of 18% on services provided by GST-registered social media influencers and bloggers. 

This is just a brief overview of tax structure. For more details, please get in touch with your tax consultant.

Tax for Social Media Influencers Tax for Social Media Influencers Tax for Social Media Influencers Tax for Social Media Influencers Tax for Social Media Influencers Tax for Social Media Influencers Tax for Social Media Influencers Tax for Social Media Influencers

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