• What percentage of tax should I pay for earning through Facebook Ad

I work full-time as content creator and earned around 35 lakh through Ads on Facebook Video Platform (Similar to YouTube) for year 2018-2019. I am confused on what percentage of tax will be deducted from total earning. I have searched web and many blogger have not included service tax and some of them have included it so I am confused how to calculate.
Asked 13 days ago in Income Tax from Bangalore, Karnataka

In 18-19 there is GST and not service tax. Have you obtained GST registration?. For income tax, you can avail the benefit of Presumptive taxation scheme.

Vivek Kumar Arora
CA, Delhi
2715 Answers
124 Consultations

5.0 on 5.0

Your work is similar to youtube so you can take benefit of presumptive taxation in Income tax.

You need to also register for GST if you haven't.

I take care of few youtubers taxation if you want I can guide you too. Feel free to contact.

 

You can contact me via a phone consultation or mail me.

 

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you.

Naman Maloo
CA, Jaipur
1674 Answers
16 Consultations

5.0 on 5.0

Hi,

 

Hope you are doing well !!

 

There is no service tax after introduction of GST.

 

Have you taken GST registration?

 

You can take the benefit of presumptive taxation scheme.

 

If you are opting for the presumptive scheme, your NET income shall be considered as 8% of your turnover (net income will be considered 6% in case of digital receipts).

 

 

Payal Chhajed
CA, Mumbai
2439 Answers
32 Consultations

5.0 on 5.0

Hello,

 

Since your Adsense earning is your full-time source of income, would be declared as Income from Business /Profession. You can use the presumptive taxation scheme under Sec. 44AD/44ADA.

You are also required to get registered under GST as your total receipts exceed Rs. 20 Lacs.

I hope this answer satisfies your requirement.

 

Regards,

CA Hunny Badlani

Badlani & Associates

Hunny Badlani
CA, Neemuch
439 Answers
1 Consultation

5.0 on 5.0

Hi

 

Such income shall be considered as a professional income.

You may opt for presumptive taxation scheme whereby 50% of your gross receipts shall be considered as your income. 

I assume your query is related to income tax to be paid on your income and not about TDS. Please clarify if it's about TDS.

 

Further, you were required to register under GST since your turnover exceeded 20 lacs. Hope you have registered under GST.

 

We may assist you with return filing.

Lakshita Bhandari
CA, Mumbai
3231 Answers
152 Consultations

5.0 on 5.0

1. TDS is deducted by the payer. It would be not applicable to you. You need to pay self assessment tax and file ITR.

 

2. Yes. If you're not registered yet, do it ASAP.

 

3. Under 44ADA, only 50% of your gross receipts is considered as income, remaining 50% straight away is presumed to be expenses. So you need to pay taxes on 17.5 lacs only.

Lakshita Bhandari
CA, Mumbai
3231 Answers
152 Consultations

5.0 on 5.0

There is no need for TDS if you are Facebook is paying you from out of India like YouTube.

Yes you need GST.

You need to pay tax on your actual income or 8% of your total receipt whichever is higher.

You must hire a CA if you don't have much knowledge.

Naman Maloo
CA, Jaipur
1674 Answers
16 Consultations

5.0 on 5.0

Please send the documents on aroravivek1982@gmail

Vivek Kumar Arora
CA, Delhi
2715 Answers
124 Consultations

5.0 on 5.0

1. TDS is not applicable to you.

 

2.Yes, it is mandatory to get GST registration.

 

3. If you are opting for the presumptive taxation scheme then you need to pay tax only on specified percentage of total income not on whole income. 

 

 

Payal Chhajed
CA, Mumbai
2439 Answers
32 Consultations

5.0 on 5.0

TDS is to be done by the person making a payment to you.  In my opinion, you are earning income in the capacity of professional and taxes are deductible @ 10% on income amount excluding ST.  Tax is deducted if the single payment is exceeding Rs 30,000.  Yes, if the income is above the GST limit, registration should be taken. You should claim credit for TDS while filing your tax return. 

Also, you should now start payments advance tax on income after considering TDS on quarterly basis to avoid interest liability.  It is  advisable to seek proper guidance on your tax filing and pay timely taxes and file return to streamline your file.

 

You can file your return on presumptive basis by declaring 50% of the receipts as income amd making payment of taxes thereon.  Feel free to reach out for professional assistance on filing return or need any advisory service.

Jasmina Jain Shah
CA, Greater Mumbai
306 Answers
3 Consultations

5.0 on 5.0

1. TDS is deducted by the payer. You are not required to deduct TDS.

2. Yes, you need to get GST registration.

3. Under the presumptive taxation scheme, your net income would be deemed to be a specified percentage of your total receipts and taxed accordingly.

 

 

Regards,

CA Hunny Badlani

Badlani & Associates

Hunny Badlani
CA, Neemuch
439 Answers
1 Consultation

5.0 on 5.0

Hi

 

Yes,you have to take registration under GST.

As its your main source of Income you have to declare it as Business Income .You can declare it under sec 44ADA(Presumptive tax).Here 50 % of your gross receipts will be taxable receipts and tax paid on normal slab rate.

 

Hope it helps

Swati Agrawal
CA, Mumbai
1106 Answers
4 Consultations

5.0 on 5.0

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