BackIncome tax department cracks down on tax-evading social media influencers. Details here
Income tax department is scrutinizing social media posts of influencers to detect tax evasion
PremiumIncome tax department is not just looking at your financials and the income tax return (ITR) you have filed. In fact, they look at your social media posts as well. In fact, your social media posts can also be a drop of hint in regard to tax evasion for the income tax department. As per the information available on the official website of CA Club of India, the income tax department has sent notices to 15 social media influencers who posted their luxury shopping and overseas holidays but paying zero or substantially low income tax. While sending notices to these 15 social media influencers, the income tax department has asked them to clarify about their sources of income tax and reason for not paying income tax.
The income tax department is reportedly using data analytics to scan social media influencers account to find out any mismatch in their social status and the ITR filed. They using data analytics to find whether social media iinfluencers are under reporting their income or not. The income tax notices slapped to 15 social media influencers ranges from various fraternities like Bollywood, fashion, lifestyle, travel, etc. In its notice, the income tax department has asked from the influencers to share their details of income from sponsored content, brand endorsement, etc. The income tax department has also sought details from these 15 taxpayers to provide details of money spent on travel, cloths and apparels, accommodations, etc.
This move by income tax department on media influencers is aimed to increasing the income tax compliance among the high earning individuals who evade income tax while fling their ITR.
Here are some new income tax rules that applies on a social media influencer. A media influencer needs to remain aware of these new taxes applying on them if they want to avoid income tax notices in future:
1] The income tax rule applies on all social media influencers who earn more than ₹2 lakh in single financial year;
2] The income tax rate is fixed 30 per cent on the gross income of social media influencers;
3] The social media influencers can claim tax deduction on their expenses like equipment purchase, travel, etc.; and
4] The new income tax applied on social media influencers have become effective from 1st April 2023.
Milestone Alert!Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more.
