influencers tds india

The creator economy is one of the fastest-growing sectors today. It is estimated to be worth $16 billion in 2022. Seeing this, the government has now decided to impose a 10% TDS (tax deducted at source) on perks worth Rs. 20,000. Now the Influencers have to fill out Income Tax. well, it has always been easy for the government to tax influencers based on their brand deals with different companies seeking sponsorship. But, you can not do the same with perks since no cash is involved here.

According to a report of Oxford Economics the india influencers on youtube was contributed 6800 Cr to india GDP in the year 2021.

Let Us Understand How Influencers fill out Income Tax

Suppose your favorite influencer Moj creator gopu_sharma goes on a trip to the Maldives to create vlogs. Now for his accommodations, he signs a deal with some flashy 5-star resort in return for sponsorships.

The resort gifts him with a one-week stay and a brand new Royal Enfield bike to visit tourist attractions in the Maldives. In return, he records a major part of his vlog inside the resort and gives thousands of his followers a glimpse of how lavish it is.

As you can see, the resort provided perks worth nearly three lakh, but the government could not tax the resort since it does not involve any cash exchange. Therefore, the government decided to go the other way round.

They decided to tax the influencers themselves whenever they signed a deal with perks worth more than Rs. 20,000. This new step can be taken as an indication by the center to regulate this booming sector.

This will have significant implications on the working of the industry. Influencers will now demand the brands pay them in cash rather than perks for clarity while paying their tax. This may end up hurting several small businesses that rely on bonuses to save their finances.

On the other hand, brands are expected to research the influencer before bringing them on board thoroughly. This can also hurt many nano influencers who are presently not in a position to compete with prominent personalities.

influencer earnings data india

In india the social media creator earn around INR 10k to 60k on per post. And if influencer with a large number of fans than he earn nearby 5 lakh per month from various Posts.

What is TDS

TDS is charged by the Income Tax Department of the government. If your annual income is more than 250000 then TDS is deducted on it.

You can withdraw only Rs 1 crore from the bank in 1 year, if you do more than that, the bank will deduct your TDS, while if the interest on your fund is more than 40000 then TDS will be deducted.

The money deducted from TDS is deposited in the account of the Central Government. Tax is also the same as in earlier times people used to pay LAGAN, another form of it is tax.

Who is gopu_sharma

He is an Indian Actor on social media platforms. He is known for his acting on a number of social media platforms including Instagram and the Indian application MOJ. Groups received huge popularity for his short videos that he posted on video-focused social media network applications including youtube, Instagram, Moj, etc. He has 1.3 Million followers on Moj and 506k followers on Instagram.

His career in dancing since he was in 5th standard and to start his career as an influencer he start making short videos at a very young age. In 2021 he received a huge amount of followers and start rising on the social media platform as a new actor.

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