Material producers and bloggers are achieving new heights as a result of the development of social media and the rising need for original content. The time when blogging was merely a hobby is long gone. It developed into a complete store!
Being a content creator or blogger is now a full-time job rather than just a way to kill time. It calls for serious commitment and continuous work for several hours each day.
The blogging industry is very lucrative due to its high monetary worth and the fact that it gives people a forum to express what they are good at.
Bloggers in India make between $100 and $10,000 per month.
Even high-profile jobs no longer provide employees with this kind of compensation package. This demonstrates how the demand for blogging and content creation is skyrocketing.
According to the Income Tax Act, every profit made through a blogger is subject to taxation.
But first, let’s clarify who precisely a “blogger” is.
Anyone who publishes regular content on their website or another social media platform, primarily in the creative industry, is referred to as a blogger.
A weblog, as defined by the dictionary, is a neutral source of information that permits the expression of the author’s opinions.
How Do Bloggers Make Money?
There are numerous ways for a blogger to make money.
One of the most popular ways for bloggers to make money is through advertising. The blog develops into a platform for advertising the goods and services of numerous businesses. These businesses reach out to bloggers to promote their goods and services on their blogs. Every time visitors click on an advertisement on a blogger’s blog, they are paid.
Personal Brand:
Establishing a personal brand allows you to profit from your name. Your brand will help you to make sales and money whether you’re speaking at conferences, judging competitions, hosting events, or developing online courses.
Paid Reviews:
Many businesses pay well-known bloggers to write reviews of their goods and services. We pay for studies that bloggers publish on their blogs and other media.
Affiliate marketing is the practice of bloggers collaborating to include links to the goods or services of another business. The blogger makes money each time a reader clicks via your blog and makes a purchase.
Freelance:
Besides being paid to write for various clients, bloggers also operate as freelancers. Consequences for Blogger income tax.
The blogger’s income is not currently categorized under any income categories allowed by the Income Tax Act.
The income is better categorized and handled as business or professional due to the nature of the job or profession.
This clause mandates that the taxpayer pay tax on income statement earnings after deducting all expenses from gross income and remitting tax on net profits.
Allowable expenses
Since blogging income is taxed similarly to commercial income, people can demonstrate specific expenses. These expenses are subtracted from bloggers’ gross earnings. These expenses are:
Domain hosting charges.
Rental fees Additional charges for telephone, power, etc.
Salary of the employee
Compensation for independent consultants.
Service charge.
More costs are incurred to earn income. Bloggers need invoices and receipts as evidence of their spending.
Depreciation
Bloggers still need to obtain the tools they’ll need for their work, even if they operate in the blogging industry.
These include laptops, furniture, office supplies, and other items. These assets’ costs cannot be deducted in the year of purchase.
This should be distributed among bloggers during the duration of the asset. The recoverable expense is the depreciation expense. Bloggers might deduct their net taxable income from their earnings to determine their net taxable income.
investment
Taxes might be avoided on your investment as well. For example, bloggers can invest in PPF, LIC, mutual funds, and more. Section 80C of the Income Tax Act makes these investments tax deductible.
Bloggers must pay taxes on the sum left over after all costs, investments, and depreciation have been subtracted.
He pays taxes by the Income Tax Act’s straight-line system, just like every other employee.
other crucial considerations
On income earned in the same year, income tax is paid. Therefore, if the threshold is exceeded, bloggers must pay taxes in installments. The input tax is this. This tax is due by the end of the fiscal year. It is produced when the tax amount in the budgetary year surpasses Rs. 10,000 and is also referred to as the Pay-As-You-Earn plan.
Penalties and interest will be assessed for late income tax payments.
Everyone who files an income tax return must have a Permanent Account Number (PAN).
Penalties
Bloggers who pay their income tax rate will be penalized under Section 234F.
A punishment of up to Rs. 10,000 will be imposed on you if you don’t pay the tax by July 31.
He will be penalized Rs 5,000 if he pays tax between December 31 and July 31.
Those with annual incomes less than Rs. Their payment is paid $5
The same income tax laws apply to business owners and bloggers. Blogging itself is regarded as a business. The blogger owns a business, and
their income comes from that business. It runs pretty much the same way.
However, the Income Tax Act will be applicable if the blogger earns other revenue besides their blogging income.
Other taxes are also due from the blogger. The Goods and Services Tax, Tax Deduction at Source, and Equalization Levy are these taxes; each is applicable by its own set of guidelines.
What is the blogger’s method of paying income taxes?
The processes for using Challan 280 to pay your income taxes are listed below.
- Go to the tax information network and the website for the Income Tax Department. Then, in the Challan 280 option, select “Proceed.”
- Fill out the form with your data. Selecting (0021) Income Tax is the best choice for an individual to continue.
- Select a method of payment.
- Please choose internet banking or a debit card as your payment method.
- Select the most appropriate evaluation year. For example, 2020-2021’s RAY is 2021-2022.
- Kindly include your complete address.
- After entering the Captcha shown on the screen, click “Proceed.”
- Make sure your information is accurate by double-checking it.
- Send the request to your bank. After that, you’ll be directed to the bank’s website to finish the transaction.
- After making the payment, you will be given a tax receipt with the payment details. Keep a record of your BSR code and Challan number; you will need these to file your ITR.
- A blogger must register for GST if their profits exceed Rs. 1. They have to pay the GST.
How can bloggers file their GST?
For a blogger to register for GST, providing her PAN card information and phone number is the first and most crucial step. Bloggers get a tax ID after submitting these articles. In addition, the blogger is required to supply the following details after this has been generated:
Business data: This comprises financial information, operational details, etc. Also, bloggers should specify the services they focus on and whether they are local, national, or international. Along with his accurate home location, he must also indicate his place of business.
Bloggers must supply their full name, date of birth, most recent photo, and PAN card. The blogger’s phone number and email address are included with the other details.
The blogger must also supply their bank information as an owner after providing all the information above.
At her GST portal in India, a form must be filled out online to complete the process.
He must pay a fee of Rs. 10,000 for failing to apply for GST, and he must pay Rs. 100 every day for failing to file a return.
How do bloggers submit their tax returns?
Since blogging is a business, the blogger must submit an ITR-3 for income taxes. Online forms are accessible. Along with your address and Adhar card number, this form needs all of your personal information.
How to finish your tax return?
Locate the form on the Income Tax Department’s website and submit it online. Validate and digitally sign documents. An electronic verification code or a signed document from ITR-5 mailed to the Central Payments Commission can also be used to authenticate documents. Address correspondence to: “Postbag No. 1, Electronic City Office, Bangalore – 560500, Karnataka.
After you submit your electronic tax return, the forms will be delivered to your address 120 days later.
The candidate should print a copy of her ITR-5 form after correctly submitting the return form. One will be mailed to the address mentioned above and signed by the judge (i.e., blogger). For your records, use the other.
Please refer to this material for more details on return reporting rules and forms.
Conclusion:
Consequently, blogging is seen as a vocation on par with a corporate job or business endeavor. Therefore, bloggers must follow all regulations and pay income tax in the same manner as company owners. Bloggers are treated the same as full-time employees regarding expenditures and deductions. They must pay taxes by the tax commission they are subject to.