look news india
Lakhs of creators are earning crores of rupees by creating content on social media. Its number is very high in India also. In such a situation, the government also has to pay tax on this earning. If you are also a content creator then you should know under which form ITR is filed on YouTube income. Also, what is the tax calculation rule?
What are the tax calculation rules?
Talking about tax calculation rules, they are the same for everyone across India. You can earn any type of income you want. Except the farmer. Tax rules apply to everyone. In India, income up to Rs 3 lakh is exempted from tax. Also, if you opt for the old tax system while filing ITR, then income up to Rs 5 lakh will come in the tax free category, while in the new tax system income up to Rs 7 lakh will come in the tax free category. Just keep one thing in mind while filing income tax that unlike the salaried class, income from YouTube cannot be filed under ITR-1 or ITR-2 form.
How is ITR different for a YouTuber?
As a YouTuber, your income is taxed like a freelancer or entrepreneur, not like a salaried individual. Therefore, you cannot use Form ITR-1 or ITR-2. Additionally, you can avail benefits of Rs. Rs.50,000 cannot be claimed as standard deduction as your income does not qualify as salary. However, you can claim tax deductions based on your business expenses.