{"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 <\/p>\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 <\/p>\n There are various sources through which a blogger can earn revenue. These are \u2013<\/span><\/p>\n <\/p>\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 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 The blogger must have bills and\/or receipts as proof of expenses incurred.<\/span><\/p>\n <\/p>\n Even in the profession of blogging, bloggers need to purchase assets necessary for the job. <\/span><\/p>\n These assets are laptops, furniture, office equipment, etc. The cost of these assets cannot be fully claimed in the same year that they are purchased.\u00a0<\/span><\/p>\n The blogger has to distribute this over the entire life of the asset. This is the depreciation and is an allowable expense. The blogger can reduce it from his\/her revenue to arrive at the net income, which is taxable.<\/span><\/p>\n It is also possible to save tax via investments. The blogger can invest in mutual funds, PPF, LIC, etc. These investments are deductible under section 80C of the Income Tax Act.<\/span><\/p>\n The blogger needs to pay taxes on the balance amount after deducting all expenses, investments, and depreciation.<\/span><\/p>\n He\/she pays the taxes according to the Income Tax Act’sAct’s\u00a0<\/span>slab rates<\/span>, like every other employee.<\/span><\/p>\n <\/p>\n All the income tax provisions applicable to bloggers are the same as applicable to business owners. Blogging is considered a business itself. The blogger is the business owner and the income, the business income. It works the same way, with hardly any difference.\u00a0<\/span><\/p>\n However, if the blogger receives additional income other than that of blogging, the Income Tax Act will be applicable accordingly. <\/span><\/p>\n The blogger is also subject to other taxes. These taxes are the Goods and Services Tax, Tax Deduction at Source, and Equalization Levy \u2013 all applicable according to their own set of rules and policies.<\/span><\/p>\n <\/p>\n Below are the steps on how you can pay your income tax with Challan 280<\/a> –<\/p>\n The blogger needs to get registered under GST if their aggregate turnover exceeds 20 Lakhs. They need to pay a total of 18% GST.<\/strong><\/p>\n The first and foremost step for a blogger to register under GST is to provide their PAN card details and phone number. After the provision of these items, the blogger will receive a Taxpayer Registration Number. Once that is generated, the blogger is said to submit the following information –<\/p>\n Once the blogger states all the necessary details above, he\/she also needs to provide his\/her bank details as the proprietor.<\/p>\n The entire process takes place on the\u00a0GST portal<\/a> of India by filling an online form.<\/p>\n Penalties for not filing for a GST is Rs. 10,000, and not filing for the return is Rs. 100 per day.<\/p>\n Since blogging is a business, a blogger needs to file his\/her Income Tax Returns under the ITR-3. The form is available online. It is a form that requires all your personal information, along with your residential address and Adhar card number.<\/p>\n This is how you can fill the form to apply for an income tax return –<\/p>\n This means that blogging is considered as much of a profession as any corporate job or business enterprise.<\/p>\n All rules apply to bloggers to pay their Income Tax just the way business owners do.<\/p>\n From expenses to deductions, bloggers are not any different than full-time working professionals. According to the tax slab they fall in, they need to pay the taxes like every other Indian citizen.<\/p>\n","protected":false,"gt_translate_keys":[{"key":"rendered","format":"html"}]},"excerpt":{"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 Being a content creator or a blogger is no more a medium to just pass the time, but …<\/p>\n","protected":false,"gt_translate_keys":[{"key":"rendered","format":"html"}]},"author":4,"featured_media":3246,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[6],"tags":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/aayushbhaskar.com\/wp-content\/uploads\/2021\/02\/Income-Tax-for-Bloggers_-Everything-You-Need-To-Know.svg","acf":[],"yoast_head":"\nBut first, let us understand who really is a ”Blogger.”<\/span><\/strong><\/h2>\n
How does a blogger earn?<\/span><\/strong><\/h2>\n
\n
Income Tax Implications on Bloggers<\/span><\/strong><\/h2>\n
Expenses Allowed<\/span><\/strong><\/h2>\n
\n
Depreciation<\/span><\/strong><\/h2>\n
Investments<\/span><\/strong><\/h2>\n
Other essential points to remember<\/span><\/strong><\/h2>\n
\n
Penalties<\/span><\/strong><\/h2>\n
\n
How does the blogger PAY his\/her Income Tax?<\/h2>\n
\n
How does the Blogger file a GST?<\/h2>\n
\n
How does the Blogger apply for an Income Tax Return?<\/h2>\n
\n
\nKarnataka.<\/li>\nConclusion:<\/h2>\n