Key Points
How will earnings from social media be taxed as per income tax laws?..
The income earned from social media sites such as X, Instagram, YouTube will be taxed depending on the head under which it is classified for an individual..
If the person receiving income from social media websites is entirely engaged in content creation on a whole-time basis and revenue earned from social media is the primary source of income, then it will be classified under profits and gains from business or profession and taxed accordingly..
If the person is casually earning and it is not a substantial amount in comparison to his other incomes, then it is classified as income from other sources and taxed accordingly, says Avinash Shekhar, CEO and Founder, TaxNodes, a tax filing platform...
The level of activity as well as the quantum of income would be relevant to decide in which head income from social media will be taxed, said Aarti Raote, Partner, Deloitte India, a business consultancy company...
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