YouTube Earning Tax: YouTube has become a big source of earning for the youth these days. There are millions of people in India who share content on YouTube. Some of these people are also earning lakhs of rupees every month through YouTube. But do you know that the government also imposes tax on this income. So let us know how much tax you will have to pay if you are earning from YouTube.
tax rules
How much income from YouTube will be taxed depends on whether it is classified as 'income from other sources' or 'trade or business income'. In most cases such income is considered to be income from business and the provisions of the Income Tax Act, 1961 apply to it.
Tax on income less than Rs 1 crore
If the income from YouTube is less than Rs 1 crore then the taxpayer will have to follow the normal tax procedure. Financial records must also be maintained, but there is no need for a tax audit.
Tax on income above Rs 1 crore
If the earning from YouTube is more than Rs 1 crore then such a person will have to undergo tax audit under Section 44AB of the Income Tax Act 1961. In such a situation, the channel owner has to get audited through a chartered accountant. In which the total taxable income is calculated by deducting business expenses and depreciation from the total income.
GST is also applicable
18 percent GST (9 percent SGST and 9 percent CGST) is applicable on advertising revenue from YouTube. For which YouTube creators will have to register their channel for GST.
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