00:00In the world of content creation, lakhs of creators are earning crores of money.
00:05And their number is also quite high in India.
00:07In this case, the government has to pay tax on this income.
00:10So if you are a content creator, then you should know
00:14what form the ITR file is under on the income from YouTube
00:18and what is the rule of tax calculation.
00:20So watch this video till the end.
00:23So first of all, we will know what is the rule of tax calculation.
00:26So if we talk about the rule of tax calculation, then it is the same in the whole of India.
00:30No matter how you earn, the rule of tax is applied on everyone except the farmer.
00:36In India, the income up to 3 lakhs has been kept tax-free.
00:40And if you choose the old tax regime while filing the ITR,
00:44then the income of 5 lakhs is kept in the category of tax-free.
00:48Whereas in the new tax regime, the income up to 7 lakhs comes under the category of tax-free.
00:53While filing the income tax, you have to keep one thing in mind
00:57that like the salaried class, the income from YouTube
01:01cannot be filed under the form of ITR 1 or ITR 2.
01:05So let's understand how ITR is different for a YouTuber.
01:09As a YouTuber, your income is taxed like a freelancer or professional,
01:14not like a salaried person.
01:15That's why you can't use the ITR 1 or ITR 2 form.
01:20Apart from this, you can't claim for a standard deduction of Rs 50,000
01:23available for salaried class taxpayers.
01:27Because your income is not eligible as a salary.
01:31However, you can claim for a tax cut on the basis of your professional expenses.
01:36Now let's understand which form you have to fill.
01:39YouTuber's income is considered as a freelancer or professional.
01:43That's why they can use the ITR 3 form.
01:46If you have chosen the option of presumptive taxation scheme,
01:52then you should use the ITR 4 form.
01:55This form is very easy and you don't need a balance sheet
01:58or a detailed profit and loss statement for it.
02:02Although, if your income is more than Rs 50 lakhs
02:05or you want to carry forward the loss,
02:10then you will have to use the ITR 3 form.
02:14The Income Tax Department categorizes YouTuber's income
02:17on the basis of the nature of the content created by them.
02:22If you make professional content,
02:24then your channel is a registered business.
02:26So, your income will be categorized as business income.
02:31And if you are making content for entertainment purposes
02:34and you are earning from it,
02:36then it can be categorized as other sources of income.
02:40So, if you are a content creator and you earn from YouTube,
02:43then you have to take care of these things.
02:45You have also been told which form you have to fill.
02:48Like the salary class, you cannot claim a deduction.
02:52You cannot use the ITR 1 and ITR 2 forms.
02:55Although, in our country, it is a rule
02:57that everyone has to pay tax except the farmer.
03:00YouTube content creators have to pay tax as freelancers or professionals.
03:06If you want to know more details about this,
03:08then do tell us by commenting.
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