YouTube Tax Explained: How Much Does the Government Deduct from Your Earnings?

Income Tax: As you know, the government collects tax on income from YouTube.

Income Tax: YouTube Channel has now become one of the main sources of income in Digital India. YouTubers are earning lakhs of rupees by showing their own content. In countries like India, the number of these YouTubers has already crossed lakhs. Do you know that the government charges tax on income from YouTube?

Under which tax rules does the government deduct money? Tax is levied on these YouTubers under the Income Tax Act of India. Income tax is levied on Indians under the Income Tax Act of 1961. In most cases of YouTube, the Indian government deducts this income tax based on the Income Tax Act 1961.

Income Tax: If tax is below one crore rupees
Remember that in the case of YouTubers, if the income is below one crore rupees, it falls under the general income tax. In that case, the government has to file income tax as per the general rules. If the income is more than this, the file comes under the tax audit.

If the income is more than one crore
Then YouTubers whose income is more than one crore money will have to get their income tax audited. This tax audit is a mandatory duty under section 44AB of the Income Tax Act. In that case, you will have to get a tax audit done by a chartered accountant. In this case, the net taxable income is calculated based on your business expenses and depreciation.

Income Tax: How much GST to pay
18 percent GST (9 percent CGST and 9 percent SGST) is applicable on advertising income from YouTube. For this, YouTube creators will have to get GST registration.