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How Indian YouTube creators should calculate tax and file ITR

Earning income from YouTube: Here's how Indian creators should calculate tax and file ITR · livemint.com

YouTube is a website where people can share videos, and some people make money from them.

In India, if you earn money from YouTube, you have to follow special tax rules.

The money is treated like income from a business, similar to running a shop.

When you earn money from another country, it has to be changed into Indian rupees using a rate set by the bank.

You can subtract the cost of things you need for your videos, like cameras and lights, before paying tax.

Sometimes you have to pay a special tax called GST when your earnings are big.

Money from ads is usually tax-free under GST, but sponsored videos from Indian brands may have 18% tax.

If tax is taken by the US government on your earnings, India gives you a credit so you do not pay twice.

You need to keep records of your earnings and expenses and file a form called ITR-3.

If you owe more than ₹10,000 in tax, you may need to pay some of it in advance.

Key facts

Expert: Isha Sekhri, Founder, Isha Sekhri & Associates LLP
Currency conversion rule: TT buying rate on 31 March of the financial year, per Rule 206 of the Income-tax Rules, 2026, as published by SBI or another authorised dealer bank
GST treatment: AdSense income zero-rated as 'export of services' under Section 2(6) of the IGST Act; domestic brand sponsorships generally attract 18% GST
GST registration threshold: ₹20 lakh aggregate turnover per year (₹10 lakh in special-category states), on an all-India PAN basis
US withholding tax: Default 24%-30% withholding, reducible to 15% under the India-US treaty by submitting US tax information through AdSense
FY 2025-26 illustration: AdSense $42,000 at ₹93.50/$ = ₹39.27 lakh; gross receipts ₹48.27 lakh; expenses ₹9.60 lakh; taxable profit ₹38.67 lakh
Tax outcome in illustration: Tax ₹7,40,100 plus 4% cess ₹29,604 = ₹7,69,704; after ₹4,000 domestic TDS and ~₹1.47 lakh foreign tax credit, net payable ₹6.18 lakh
ITR form: ITR-3 for creators who maintain regular books, claim actual expenses, or have foreign income

livemint.com · 0 months ago