Archive · 13 Aug 2026
How Indian YouTube creators should calculate tax and file ITR
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.
Indian YouTube/AdSense earnings are treated as business income under 'Profits and Gains of Business or Profession,' typically reported in ITR-3.
Foreign-currency income must be converted using the telegraphic transfer (TT) buying rate on 31 March of the relevant financial year, as published by SBI or another authorised dealer bank.
AdSense payments from Google outside India qualify as 'export of services' and are zero-rated under GST; registration is required when aggregate turnover exceeds ₹20 lakh (₹10 lakh in special-category states).
No Indian TDS is deducted on AdSense payments, but US withholding tax applies to earnings linked to US viewers, and creators can claim the 15% India-US treaty rate by submitting US tax information through AdSense.
In an FY 2025-26 illustration with ₹38.67 lakh taxable profit, tax liability was ₹7,69,704; after domestic TDS and foreign tax credit, net tax payable was about ₹6.18 lakh.
- Who
- Indian YouTube content creators, and Isha Sekhri, Founder of Isha Sekhri & Associates LLP, who explained the tax rules.
- What
- Guidance on how Indian creators should calculate, report, and comply with tax rules on YouTube/AdSense earnings, including GST, TDS, ITR filing, and foreign tax credit.
- When
- Guidance for FY 2025-26, with foreign income converted at the TT buying rate as on 31 March of the relevant financial year.
- Where
- India, involving SBI or other authorised dealer banks, and the India-US tax treaty for US withholding tax.
- Why
- To help creators report YouTube earnings correctly, claim deductions and foreign tax credits, and avoid reporting errors and potential scrutiny.
- 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