Tax filing online content creators
Tax filing online content creators, Online content creators who have a full-time job need to navigate specific Income Tax Return (ITR) filing requirements that account for both their content creation income and their employment income.
Here’s an explanation of these requirements:
1. Income Declaration:
Online content creators are required to declare all their sources of income, including earnings from content creation and their full-time job, in their ITR. This ensures accurate reporting and compliance with tax regulations.
2. Differentiating Incomes:
It’s crucial to differentiate between income sources. Earnings from the full-time job should be reported under the appropriate head of income, such as “”Salary.”” The income generated from online content creation, whether through advertisements, sponsorships, or other means, should be reported under the relevant head, such as “”Income from Business or Profession.””
3. Adequate Deductions:
Content creators can claim deductions for expenses directly related to their online content creation activities. These deductions can include costs for equipment, software, internet, marketing, and other relevant expenses. However, it’s important to ensure that only genuine and verifiable expenses are claim to avoid discrepancies.
When Tax filing online content creator should:
(i) Provide accurate and complete information about their employment income, adhering to Form 16 provided by their employer.
(ii) Use Form 26AS to cross-check their online content creation income and other sources of income, ensuring consistency.
(iii) Utilize the appropriate ITR form that corresponds to their income sources and filing status. For example, ITR-4 might be applicable for those with income from business and profession, which includes online content creation.
(iv) Declare all relevant details, including PAN, Aadhar number, bank account details, and other required information.
(v) Maintain proper documentation to support their income and expense claims in case of an audit or verification.
By following these guidelines, online content creators with a full-time job can effectively meet their ITR filing requirements, ensuring accurate reporting of their combined income sources and compliance with tax regulations.
To visit: https://www.incometax.gov.in
