Those who earn on social media, how much tax do they have to pay... which ITR form do they fill out?
Income Tax Return: Till now, social media influencers or stock market traders used to use other categories to file their returns, which made it difficult to identify
ITR For Social Media Influencers: Recently, social media content creators and influencers have emerged rapidly in the digital world. According to the Income Tax Department, the number of social media influencers earning more than Rs 20 lakh annually has increased in the last two years. Some influencers have earned up to Rs 2 to 5 crore annually. In such a situation, a separate code has been introduced for people involved in these professions. Also, those who do not give details will also be tightened.
But, do you know which form those who earn on social media have to fill and how do they fill their income tax returns? The Income Tax Department has made a big change in the ITR-3 and ITR-4 forms and added five professional categories to them. These include earnings from YouTube and other social media, speculative business, commission agents and futures and options traders.
Changes for those earning from social media
In fact, till now social media influencers or stock market traders used to use other categories to file their returns, which made it difficult to identify which profession the person is associated with.
Now they have been given a special code, after which there will be no problem in identifying them. Those earning from YouTube and other social media have been given the code 16021 by the Income Tax Department. This code has been given to those earning from promotion, digital content or advertising, which has been included in both ITR-3 and ITR-4 forms.
In such a situation, those earning from social media will have to fill ITR 3 or ITR 4 according to their income level and estimated tax. Experts say that if an influencer opts for section 44ADA under presumptive taxation, then he will have to fill ITR-4.
What are the rules for stock market traders
Along with this, a new code 21010 has been added for traders of the futures options (F&O) segment who earn from the stock market. This code will ensure correct information in their earnings from trading. Traders will have to fill ITR-3 to give information about their entire income and profit-loss.
