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YouTube has now become not just a video sharing platform but also a means of earning. People are earning money by creating different types of content on this platform. However, with the increasing opportunities of income, let us know what are the rules for imposing tax on them under the Income Tax (I-T) Act 1961.
Earnings from YouTube are kept under the purview of business income. If the total income from this platform is less than one crore, then the creator can file the return without getting audited, but if the income is more than one crore, then it is necessary to get audit done under Rule 6A.
They have to get audited
Those whose earnings on YouTube are more than Rs 1 crore are required to undergo tax audit under Section 44AB. This work has to be done by a chartered accountant. The amount that remains after all deductions from gross income is called net taxable income.
If one’s tax liability is more than Rs 10,000, he has to pay advance tax. Advance tax is deposited in four installments throughout the year. Tax has to be paid up to 15 percent by June 15, 45 percent by September 15, 75 percent by December 15 and 100 percent by March 15.
GST on YouTube income
In India, GST has to be paid at the rate of 18 percent on income from YouTube. Creators will have to apply for GST registration and will have to file returns from time to time after calculating GST on the income earned from advertising on the channel.
If the age of those earning from YouTube is below 18 years, then they come under the scope of unique tax consideration. That is, instead of clubbing their income with the income of their parents, their income is taxed separately. Overall, YouTube is rapidly flourishing as a new means of earning, therefore, you will have to understand your responsibilities regarding tax very well and follow it.
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