YouTube Earning Tax: In today’s time, running a YouTube channel has become a big source of income. There are lakhs and crores of people in India who run their own YouTube channels. There are many people who earn lakhs of rupees every month from this work. But, do you know that the government has to pay tax on this income also. Let us know today that if you are earning from YouTube then how much tax will you have to pay on it.
tax rules
How much tax will be charged on earnings from YouTube depends on whether it is classified as “Income from other sources” or “Income from business and profession”. In most cases it is considered business income and the provisions of the Income Tax Act 1961 apply to it.
Tax on income less than Rs 1 crore
If the total income is less than Rs 1 crore, the taxpayer has to follow the normal tax procedure. Keeping financial records is important, but tax audits are not required.
On income more than Rs 1 crore
But if the income is more than Rs 1 crore, then it is mandatory to conduct tax audit under Section 44AB. In such a situation, the channel owner has to get audited through a chartered accountant. Net taxable income is calculated after deducting business expenses and depreciation.
GST is also applicable
Advertisement income from YouTube is subject to 18% GST (9% CGST and 9% SGST). For this, it is necessary for YouTube creators to get GST registration.
Disclaimer: (The information provided here is being provided for information only. It is important to note here that investment in the market is subject to market risks. Always seek expert advice before investing money as an investor. ABPLive.com does not advise anyone It is never advisable to invest money here.)
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