Content creators earning money through Instagram posts, YouTube videos, X, LinkedIn, or brand collaborations must understand that income is generally treated as business or professional income. According to Abhishek Soni, CEO and co-founder of Tax2win, creators can claim eligible expenses incurred for earning this income, and any TDS deducted by brands or platforms can be claimed as tax credit. CA Siddharth Maurya, Managing Director of Vibhavangal Anukulkara Pvt Ltd, explained that income from brand deals, affiliate links and platform monetisation is generally reported under 'Profits and Gains from Business or Profession'. The Income Tax Department has also provided a separate profession code, 16021, for social media influencers.
Content creators generally need to file ITR-3 unless they are eligible to use another applicable return form. For AY 2026-27, ITR-4 (Sugam) is available to eligible resident individuals, HUFs and firms other than LLPs with total income up to ₹50 lakh, where business or professional income is computed on a presumptive basis under Sections 44AD, 44ADA or 44AE. As reported by Maurya, creators can choose ITR-3 if they want to report actual income along with detailed expenses, or ITR-4 when they opt for presumptive taxation. The ITR filing deadline is August 31, 2026 for most influencers not subject to tax audit, with tax audit cases having an extended deadline of October 31, 2026.
Rule 206 of the Income-tax Rules, 2026 prescribes the telegraphic transfer (TT) buying rate for converting foreign-currency income into rupees. According to Isha Sekhri, Founder of Isha Sekhri & Associates LLP, this prescribes the TT buying rate on 31 March of the relevant financial year, as published by SBI or another authorised dealer bank. For YouTube/AdSense earnings, treated as business income, the applicable rate is the TT buying rate on 31 March of the relevant financial year. This conversion method ensures creators use the official rate rather than generic rates like Google rates or bank crediting rates.
Payments from Google outside India qualify as an 'export of services' under Section 2(6) of the IGST Act, making AdSense income zero-rated under GST with eligible input tax credit or refunds available. GST registration is generally required when aggregate turnover exceeds ₹20 lakh in a financial year, or ₹10 lakh in specified special-category states. However, no Indian TDS is deducted on the AdSense/YouTube Partner Program payment, though US withholding tax can apply to earnings linked to US viewers. Indian creators should submit US tax information through AdSense to claim the 15% India-US treaty rate instead of the higher default 24%-30% withholding rate.
Since creator income is treated as business or professional income, influencers can claim eligible expenses including studio rentals, internet bills, software licenses, payments to video editors and depreciation on production equipment such as cameras, lighting equipment and laptops. According to Aman Agarwal, eligible expenses may also include equipment depreciation and payments to assistants. Key business expenses that creators can claim as deductions include camera, laptop, lighting and other equipment depreciation, editor, scriptwriter and freelancer payments, software and subscriptions costs, business-related internet and mobile expenses, studio/home-office rent and related costs, content-production travel and location expenses, marketing, collaboration and cross-promotion payments to other creators, professional fees, and currency conversion fees on foreign remittances. However, if creators opt for presumptive taxation under Sections 44AD or 44ADA, separate deduction for normal business expenses is generally not allowed, though eligible deductions under Chapter VI-A can still be claimed.
