YouTubers and vloggers are full-time professionals in India who earn handsomely. This new age breed of professionals is not limited to adults as several such popular YouTubers are minors with their own independent channels.
Earnings from social media platforms such as YouTube and Instagram largely depend on the number of views along with factors such as the number of subscribers, engagement of the video, niche of the channel, and traffic source, etc. Apart from earning by creating videos, several other sources add to the revenue of YouTubers such as Google AdSense, Affiliate Marketing and Sponsored Posts, etc. Income earned from any of the above means is taxable.
In case of minor YouTubers, taxability of such income gets complex as the income of minors is ordinarily clubbed with parents except where it is earned from their skills. The applicability of tax provisions depends upon the source and nature of income.
The income earned from creating these videos shall be considered business income and are taxable under the head “Profits or Gains from Business or Profession” (PGBP). Further, expenses incurred for content creation shall be allowed to be deducted from such income. On the other hand, the income derived by the…