Income Tax Login: Many means of earning are present in today’s time. Among these, social media is also seen as a means of earning. Nowadays, people are earning lakhs of rupees every month through the use of social media. In such a situation, let us know how much tax is levied on them.
Income Tax Return Filing: The Internet has made it possible for individuals to create and earn content on various social media sites such as YouTube, Instagram, X (formerly Twitter) and others. People are also earning income in lakhs every month through social media sites. Although most of the social media sites are located abroad, the question arises that how will the person earning money from these websites be taxed in India? Let us know about it…
Income Tax
Income earned from social media sites like Facebook, Instagram, YouTube will also be taxed. For this, a provision has also been made by the government in the income tax return. If a person earning income from social media websites is engaged in content creation on a full-time basis and the income earned from social media is his primary source, then it will be classified and taxed under profits from business or profession. .
Other sources of income
On the other hand, if the person is earning casually from them and it is not a sufficient amount compared to his other income, then it is classified as Other Source of Income and then tax is imposed on it. The level of activity as well as the amount of income will be relevant to decide how much income from social media will be taxed.
Tax
If the level of activity is irregular and the earnings generated from a tweet are a “one-off situation”, one could argue that the income should be classified as income from other sources. The criteria for determining this classification will be influenced by the specific circumstances of each individual case.
Income tax slab
However, there is no special income tax slab for income from social media websites. All income has to be reported while filing income tax return and this income will be taxed as per the tax slabs specified by the government. If someone files ITR from the old tax slab, then no tax is levied till the annual income of Rs 2.5 lakh. Whereas if someone files income tax return from the new tax slab, then no tax is levied till the annual income of Rs 3 lakh.
