How Income From X (Twitter) Will Be Taxed, Calculated

How Income From X (Twitter) Will Be Taxed, Calculated

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Aug 11, 2023

Rajeev Kumar

X (formerly Twitter) users have started earning money from the platform. However, such income in India will be subject to taxation. Read on for details

X has started sharing ad revenues with content creators on the platform. Several users have reported receiving lakhs of rupees in their accounts recently.

Tax experts say that any money received by users from the social media platform would be subject to tax. But it won’t be same for all users.

Twitter income will be taxed as ‘Profit and Gains from Business and Profession’ if it is the primary source of income of a content creator.

In case of casual users earning ad revenues, such income will be taxed as ‘Income from Other Sources’.

Experts say income received by Indians from Twitter ad revenue will be taxed, and it will be mandatory to file an income tax return.

In case you are earning over Rs 20 lakh from Twitter, you will have to register under the GST law.

GST implication?

Tax on income from X (Twitter) would be computed as per the marginal slabs applicable to the taxpayer receiving such income.

Tax Calculation

In case of salaried persons, any income from Twitter would be generally considered as “income from other sources”.

For self-employed, freelancers or professionals, income from Twitter will be treated as business income.

Salaried taxpayers may report income from Twitter while filing income tax return in forms ITR1 or ITR2 as applicable.

In case of non-salaried income, Twitter income may be reported in Form ITR 3.

In case income is reported as ‘Profits and Gains from Business and Profession’, the taxpayer may be eligible to deduct certain expenditures incurred for activities on Twitter from which such revenue is generated.

Deductions

Learn more