{"id":3227,"date":"2022-02-16T23:15:18","date_gmt":"2022-02-16T17:45:18","guid":{"rendered":"https:\/\/aayushbhaskar.com\/?p=3227"},"modified":"2022-07-30T18:45:09","modified_gmt":"2022-07-30T13:15:09","slug":"income-tax-for-bloggers","status":"publish","type":"post","link":"https:\/\/aayushbhaskar.com\/income-tax-for-bloggers\/","title":{"rendered":"Income Tax for Bloggers: Everything You Need To Know","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"

With the onset of social media and the rising demand for creative content, content creators and bloggers are reaching new heights. Gone are the days when blogging was just a hobby; it is a full-fledged business now!\u00a0<\/span><\/p>\n

Being a content creator or a blogger is no more a medium to just pass the time, but it is a whole job. It requires the dedication to put in multiple hours daily and never-ending efforts.\u00a0<\/span><\/p>\n

The blogging profession is very lucrative not just because it provides an individual with a platform to express what they are best at but also because it has high monetary values.\u00a0<\/span><\/p>\n

In India, a\u00a0<\/span>blogger earns<\/span>\u00a0anything between $100-$10,000 per month.\u00a0<\/span><\/p>\n

Even many high-profile jobs do not offer such a package to their employees. This proves how the demand for blogging and content creation is on a spectacular rise.<\/span><\/p>\n

Every income earned by a blogger is taxable under the\u00a0<\/span>Income Tax Act<\/span><\/a>.<\/span><\/p>\n

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But first, let us understand who really is a ”Blogger.”<\/span><\/strong><\/h2>\n

A blogger is any person who creates regular content on their website or any other platform like Facebook, Instagram, etc., majorly in the creative field.<\/span><\/p>\n

However, the dictionary term of a blog is an independent source of information that allows the expression of the writer’s opinions and views.<\/span><\/p>\n

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How does a blogger earn?<\/span><\/strong><\/h2>\n

There are various sources through which a blogger can earn revenue. These are \u2013<\/span><\/p>\n

    \n
  1. Advertisements:<\/span><\/strong> It is one of the most common sources of revenue for any type of blogger. When a blog grows, it becomes a platform for promoting the products or services of different companies.\u00a0<\/span><\/span>These companies reach out to the blogger to showcase their products\/services on his\/her website. Every time a visitor clicks on the ad on the blog, the blogger earns revenue.<\/li>\n
  2. Personal brand:<\/strong> When you build a personal brand, your name is what gets you the money. Whether it is attending an event, judging a show, becoming a speaker, or creating an online course \u2013 it sells due to your personal brand, generating revenue.<\/span><\/span><\/li>\n
  3. Paid reviews:<\/strong> Many companies approach famous bloggers to review their services\/products. They pay the blogger for the review he\/she posts on their blog or any social media handle.<\/span><\/span><\/li>\n
  4. Affiliate sales:<\/span><\/strong> Upon mutual agreement, as and when a blogger adds links to the products and services of another company, it is called affiliate marketing. Every click and purchase the reader makes through the blog gets the blogger to earn revenue.<\/span><\/span><\/li>\n
  5. Freelancing:<\/span><\/strong>\u00a0Bloggers also work as freelancers, in which they collaborate with different clients and get paid for the work.<\/span><\/li>\n<\/ol>\n

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    Income Tax Implications on Bloggers<\/span><\/strong><\/h2>\n

    Blogging income is currently not classified into the five heads of income as per the Income Tax Act. <\/span><\/p>\n

    However, given the nature of the activity\/profession, the income is best classified under the Income from Business\/Profession and is treated accordingly.\u00a0<\/span><\/p>\n

    Under this section, the taxpayer must pay taxes on the income in the profit and loss account after considering total expenditure and total revenue, remitting taxes on the net income.<\/span><\/p>\n

    Expenses Allowed<\/span><\/strong><\/h2>\n

    As the income from blogging is like a business income and taxed accordingly, the taxpayer can show certain expenses. The blogger deducts these expenses from the total revenue. These expenses are \u2013<\/span><\/p>\n