Making Money from Social Media? Learn the Right Way to File Your Return

Making Money from Social Media? Learn the Right Way to File Your Return

Nowadays, many people are making money through social media platforms by posting content, doing brand collaborations, and sponsoring products online. The trend of earning money online is mostly popular among the youngsters using platforms like YouTube, Instagram, Facebook, etc. But do you know this income is taxable?

If you are a social media influencer earning from advertisements, affiliate marketing, brand sponsorship, paid collaborations, etc., through posting videos on social media platforms, your income is taxable. Under the Income Tax Act, if the main source of your income is a social media earning, such income is treated as business income. But, if this income is received apart from a salary or any other main source of income, it is treated as ‘income from other sources‘.

In India, there is a slab system, based on which the tax rate applies to the income. The taxpayers who earn more pay a higher rate of tax. So, whether you are earning from a full-time job, running a business, or making money online, all this is clubbed together.