Income Tax 2024: If you earn through social media, then that income of yours comes under the purview of income tax. If liability arises then income tax has to be paid. On the other hand, if you have received a gift from a company, then tax has to be paid on it as well. Know, what are the tax rules on earnings from social media:
Income Tax 2024: Are you a social media influencer? Do you earn money through social media platforms like Instagram, Facebook, X (earlier Twitter), YouTube etc.? If your answer is yes then you have to file Income Tax Return (ITR). Actually, there are many influencers on social media these days.
They also earn through videos, photos, advertisements etc. Many times companies also give them products as gifts. All these come under the purview of income tax. Actually, earnings from social media are considered as income from business. In such a situation, it is necessary to file ITR.
Tax on earnings in this way
It is necessary to file ITR if there is any kind of income from social media. Earning is done on social media in this way:
Earning from advertisements: If a person posts his videos on YouTube etc., then some advertisements come in between that video. A part of the earnings from these advertisements goes to the person who posted the video. Tax has to be paid on the income earned from this.
Through sponsorship posts: Many influencers post something related to the product or service of a particular company on their social media accounts. In return, that company pays some amount to that influencer. This is also the income of the influencer and comes under the purview of tax.
Advertising the product: There are many people who advertise the product of a particular company in the middle of the video posted on their social media accounts. Many times this advertisement is also written in the video. Through this advertisement, companies make payment to that person. Income tax has to be paid on this income as well.
How much tax is to be paid
Now the question arises that how much income tax is to be paid on the income earned from social media. Actually, at present there are two systems of income tax. First old and second new. Income tax has to be paid according to the current slab of income tax on the income earned through social media. It depends on the person filing ITR whether he will choose the old system or the new system.
Exemption is available in some things
It is not that tax has to be paid on the entire income earned from social media. In many cases, these are also exempted. For example, expenses incurred in using the internet, money spent on buying software, editing, photography, travel etc. are such things in which the money spent has been kept under the exemption. You can take exemption in this while filing ITR.
GST is necessary
If a person earns more than Rs 20 lakh annually through social media, then it is necessary for him to get a GST number. However, in some states this limit is Rs 10 lakh. In such a situation, that person also has to pay 18 percent GST on the earnings.
TDS is deducted on gifts
Many people or influencers buy a company’s product and advertise it on social media. If the company has given that product to that person as a gift, then TDS has to be paid on it. As per the Income Tax rules, if the price of a gift is more than Rs 20,000, then 10 percent TDS has to be paid on it.
