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Procedure to show earnings from social media platform while filing Income Tax Returns!
Posted on: 22/Jan/2021 2:46:42 PM
Now that we are aware of the aspect that the classification of such an income, besides the regular income, the net earnings from social media also need to be shown while filing the Annual Income Tax Returns.
Please note that in case the quantum of income through such source is huge, that is, above Rs. 50 Crores as above in net annual turnover then towards the end of the financial year, their tax audit is also to be done.
Note that when making this net income declaration from social media platforms, you need to deduct annual expenses.
A SEBI registered tax and investment expert Manikaran Singhal, explaining the rules for the same, observed, "Income from social media falls under the purview of service, sector and hence the income tax audit becomes mandatory if one`s net annual turnover is Rs 50 lakh or above. However, it doesn`t mean one needs to pay income tax on Rs 50 lakh. One`s expenses have to be deducted while calculating the net income from social media. For example, one needs to go for the internet expenses, private video and photoshoot, social media experts for getting more traction on one`s social media account, etc. These are some common expenses that one must deduct from the annual turnover during the ITR filing.
