Tax rules – Individuals can now develop and make money from content on a variety of social media platforms, including YouTube, Instagram, X (previously Twitter), and others because of the Internet. Through social media platforms, people are also generating millions of dollars in income each month. The topic of how someone making money through social networking websites would be taxed in India arises despite the fact that the majority of these websites are based elsewhere. Let’s discuss it.
Income Tax
Taxes will also be applied to income derived from social media platforms like X, Instagram, and YouTube. The government has also included a provision for this in the ITR. An individual’s income from social media websites will be classed as profits and gains from a company or profession and subject to taxation if they are exclusively involved in content creation on a full-time basis.
Other Income Sources
On the other hand, if the individual receives a casual income from these and it is insufficient in comparison to his other sources of income, it is categorized as an additional source of income and is subject to tax. Is. How much social media income will be taxed will depend on both the volume of activity and the amount of income.
Tax
It can be argued that the revenue should be considered as income from other sources if the activity level is irregular and the earnings from a tweet are a “one-off situation.” The unique circumstances of each instance will have an impact on the standards used to categorize individuals.
Slab Income Tax
Even so, there isn’t a separate income tax bracket for money made via social media websites. All income must be disclosed when filing an ITR, and taxes will be assessed on it based on the government-prescribed tax slabs. If an individual files an ITR under the previous tax bracket, no taxes are due up to an annual income of Rs 2.5 lakh. On the other hand, no tax is assessed up to an annual income of Rs. 3 lakh if an individual submits an ITR under the new tax bracket.
Read more: Income Tax Rules: As a result of a new rule for government employees, take-home pay will increase
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