How Do Youtubers Pay Taxes – In recent years, bloggers and YouTubers have become a new full-time profession in India. These bloggers and YouTubers earn lakhs of rupees per month but they may not have a clear idea about the tax system in India which is levied on their income and services. So in this guide, let’s talk about blogging and professional YouTubers and how their income is taxed in India.
Bloggers are mostly self-employed or individuals who share their knowledge and interests through words, a complete website or images, etc., and often earn through advertising and affiliate marketing (referrals to other products and services).
How Do Youtubers Pay Taxes
In recent times there are many famous bloggers in India like Harsh Agarwal from Scream, Shraddha Sharma from Your Story who earn millions from blogs. These bloggers are building a web platform where they write about specific topics and interact with an audience of millions. Even some bloggers openly share their income report, ex-crimeloud they earn an average of Rs 20-25 lakh per month.
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Google Adsense and Other Advertising Networks – Initially most bloggers apply for a Google Adsense account.
(A Google product that acts as an intermediary and serves ads to advertisers on all websites and shares revenue with websites)
For example – if you are reading this article then there are ads in the middle of the article or below or above or on the side of the web page, most of the ads are displayed in the google adsense account based on the user’s past activities or interests etc. . So when users click on these ads, Google Adsense shares the click revenue that the advertiser gets from the website owner. So there are many advertising websites like media.net
Affiliate Marketing – Apart from Google Adsense, bloggers earn mostly from affiliate marketing. In simple words, affiliate marketing is a method, where you refer any product or service of a company by placing specific links on your website, after successful conversions like sales or subscriptions etc., the blogger gets a certain percentage. Is. Committee. Even leading e-commerce companies like Amazon or Flipkart have booked 20-25% revenue through affiliate marketing.
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Post Placement/Sponsored Post Ads – Apart from advertising or affiliate marketing, bloggers earn through post placement/sponsored ads. In this medium, companies interact directly with bloggers and provide sponsorship for paid reviews or post ads on any page or article side.
After blogging, YouTubers are the new profession in the online market. YouTubers are also creative people who base their channel on comedy, entertainment, education, technology, fashion, stock market etc. and create more viewers like users. After cheap 4G data packages in India, YouTube has become the second largest audience engaging website after Google and ahead of Facebook. When it changes, many famous YouTubers in India like BBQine, Amitabhadana, Technical Guruji, Ashish Chinchalani etc. where they have millions of viewers. According to Social Blade, most of the famous bachelors in India earn an average of INR 5 lakhs per month.
YouTubers also earn money like blogging. After creating a channel, first you need to fulfill the requirements of Google AdSense or YouTube AdSense. Google Adsense will then display ads during your video and share the ad revenue with YouTubers based on clicks.
Apart from this YouTuber earn money through affiliate marketing and sponsorship where they promote any product or unlock a product and people buy products or services through affiliate links.
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Now let’s discuss how the income from these two professions is taxed. There are 2 types of taxes that will be levied on any business or both professions.
If we talk about GST implementation for bloggers, in most cases GST is not applicable to bloggers or YouTubers. Because they earn from Google Adsense which is the ad provider and advertisers are only associated with Google Adsense to place ads, not bloggers.
Even without raising any invoices from the bloggers every month, Google AdSense transfers the income to the bloggers account. So you can say that Google AdSense or advertiser replaces invoices or bills and collects GST on the same. In this case only Google Adsense will increase the advertiser’s GST invoice.
But if we talk about private placement of advertisement where the advertiser interacts directly with the bloggers and pays for the service, then GST is applicable when their advertisement receipt is more than Rs 40 lakh per annum.
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So if a blogger wants GST credit on their invoices like web hosting, internet expenses, advertising expenses, affiliate commission etc. then they can apply for GST registration for the same.
Bloggers and YouTubers earn thousands per month which will be deposited into their secured bank account. So all these incomes are charged to income tax as sole proprietorship unless they are registered as a legal entity like Private Limited Company or LLP or Partnership etc.
Business of bloggers and YouTubers come under service based business as per Income Tax Act 1961, if their gross income is more than 1Cr+ per annum then they are liable for assessment of tax under Section 44AB. They are even liable to pay TDS which they will deduct from Google and Advertiser.
Income tax will be levied on net income from blogging which will be considered after deducting various expenses. Simply put, as with any regular service-based business, income tax is levied on net profits (Sales + Other Income – All Expenses = Net Profit).
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Apart from these expenses from income, there are certain deductions allowed for private investment. Investments in popular investments like LIC, mutual funds, PPF account, health insurance etc. are allowed to be deducted from net income.
Believe this guide is useful for all bloggers or youtubers to understand the importance of tax system in India. If you have any questions you can send your questions in the comment section below.
Anil Kumar is the legal content writer for ePANapply and myudyogaadhar.com. Anil has 3+ years of legal experience in corporate mergers and tax matters etc.
Please note that we are not affiliated with epanapply.com. This is a guest post and not sponsored. I received no financial gain from the publication of this article. The content of this post is for general information / educational purposes only.
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Also note that it derives its revenue from Google AdSense only by selling ad space. We are not affiliated with any financial product or affiliate marketing service provider, commission based business, revenue sharing model or bonus/bonuses.
A blog about personal finance. The main objective of this blog is to help you make informed financial decisions by presenting money-related content in a simple, unbiased and easy-to-understand manner.
Please login again The login page will open in a new tab. After logging in, you can close this page and return. Do YouTubers Pay Taxes? 10 YouTube Tax Tips for You to Know YouTube Creators Tax May 06, 2020
YouTube taxes can be complicated. Both small YouTubers and full-time YouTubers struggle with YouTube taxes and figuring out how to pay taxes on their YouTube earnings. Here are 10 YouTube tax tips you need to know!
If You Are A Youtube Creator, You May Have To Pay $24 As Tax For Every $100 You Make
Most YouTube creators don’t know that they need to pay taxes on their YouTube ad revenue. The short answer is yes. You are required to pay YouTube tax and you must pay YouTube income tax on brand agreements and affiliate marketing income. YouTube income taxes represent self-employment income, and YouTube taxes are not charged to you because you are not a YouTube employee.
YouTube Adsense income is reported on a 1099 form and you receive YouTube income and you will file a 1044 tax or Schedule C.
**Disclaimer: I am not a financial advisor or licensed tax professional, this information is for entertainment and educational purposes only. Please consult a licensed financial professional.
No they don’t and you are responsible for reporting your 1099 income to YouTube/Google and paying the appropriate taxes on that income.
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Yes, you have to pay tax on income from sponsored brand deals and affiliate commissions, which are not deductible.
You’ll need to talk to a tax advisor or CPA, but ultimately you can deduct reasonable and necessary expenses, including training, camera equipment and business travel.
You will need to check what the legal requirement is based on your location. But you must report all income to your local government by law.
As a YouTube content creator, you can deduct essential items, your personal office space, your internet usage and of course any goods you buy.
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Most CPAs recommend that you pay your taxes quarterly to avoid a large tax bill.
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