Income tax information: How my YouTube earnings are taxed?

I’ve a YouTube channel. I obtained earnings from it resulting from commercials. Does it fall beneath earnings from enterprise or occupation? Which one is relevant 44 AD and 44 ADA? Also, I’ve a wage earnings of two months on this FY 22-23. Which ITR kind is relevant to me?

The reply to your query would rely on the extent to which you’re conducting the exercise on YouTube. If that is your sole exercise for incomes your primary earnings or it earns you substantial earnings, the identical could be handled as enterprise earnings and could be taxed beneath the “Profits and Gains of Business or Profession” head.

In case that is simply your leisure pursuit and ends in not substantial earnings comparatively the identical may be taxed beneath the top “earnings from different sources.

So in case the identical falls beneath the top “Profits and Gains of Business or Profession”, we have to study whether or not this may be handled as enterprise or occupation and which might rely on what kind of movies you’re importing. If the contents of the video which you’re importing require you to have technical experience for which particular coaching is required, the identical could be handled as a occupation in any other case the identical may be handled as your small business earnings, and provisions of part 44AD would apply.

You have to discharge your tax legal responsibility by means of advance tax in case your tax legal responsibility in respect of such earnings exceeds Rs. 10,000/-. If the legal responsibility is lower than this quantity you possibly can pay the taxes in respect of this earnings as self-assessment whereas submitting your earnings tax return.

You have to file kind No ITR 4 in case you choose to deal with this as enterprise earnings or kind no ITR 1 or ITR 2 relying on whether or not you’ve gotten a couple of home property or earnings taxable beneath the top capital positive factors.

Moreover, you possibly can file ITR 4S if you wish to avail the advantage of presumptive tax beneath Section 44AD or 44 ADA supplied you shouldn’t have a couple of home property. Please word all professions don’t eligible for a presumptive scheme of taxation beneath 44ADA.

Balwant Jain is a tax and investments professional and may be reached at jainbalwant@gmail.com and @jainbalwant his Twitter deal with.

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Updated: 25 Jul 2023, 10:27 AM IST