In India, there is a provision for Income Tax. People have to pay tax on their income, and there are specific rules made for this. These days, the ways of earning money are changing, so the government is also updating tax rules. Now, the earnings of social media influencers (such as YouTubers, Instagrammers, TikTokers) will fall under a special tax category. The Income Tax Department has introduced a new code “16021” for the financial year 2024-25. This code applies to those earning through social media platforms – like brand promotions, selling products, or creating digital content.
From now on, earnings from social media, YouTube, F&O trading, commission agencies, betting, or stock trading must be reported in detail in ITR-3 or ITR-4 forms. The Income Tax Department has made changes to these forms and added five new professional codes.
Changes for social media earners
Until now, social media influencers and stock market traders used other categories to file their returns, making it difficult to identify their specific profession. Now, they have been assigned special codes, which will help in identifying their source of income easily. YouTubers and others earning from social media have been given the professional code 16021 by the department.
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Those earning through promotions, digital content creation, or advertisements will need to use this code. This code has been included in both ITR-3 and ITR-4 forms. Depending on the income slab, they will need to file ITR-3 or ITR-4. Under Section 44ADA of the Income Tax Act, if they want to take advantage of the presumptive taxation scheme, they will have to file ITR-4.
Here is the full list of new codes:
- Commission agents – 09029
- Social media influencer – 16021
- Betting business – 21009
- Futures and Options (F&O) trading – 21010
- Share buying and selling – 21011
New rule for stock market traders
Along with this, a new code 21010 has been introduced specifically for traders earning through Futures and Options (F&O) in the stock market. This code will help in giving accurate information about income from such trading. Traders must file ITR-3 and provide complete details of their income, profit, and loss.