Does 44AD apply to a full-time Youtube Creator? My CA says it doesn't apply. Please answer.

Does 44AD apply to a full-time Youtube Creator? My CA says it doesn't apply. Please answer.

I make money only through Youtube where most of my income reaches me as Google Adsense revenue. I have made a small portion of revenue through 'brand sponsorship' where I charged a fixed price for promoting some products in my videos.
My CA says 44AD (for business) cannot be applied in my case because my income doesn't fit the list of income eligible for 44AD (for business).

Although, he says I'm eligible for 44ADA (for professionals). I had filed taxes under 44ADA (for professionals) last year but this year my earnings crossed 50 lakh which means I can't use 44ADA anymore.
Please help.

Asked 3 years ago in Income Tax

- section 44AD is applicable in your case. Revise the ITR for previous year. Last date to revise the ITR is 31.03.2021. I can assist you in revising the ITR.

- As the turnover is more than Rs.20 lacs you are also liable to obtain GST registration. It is an export of services for payments from google AdSense and for sponsorship we have to check the liability of GST based on the facts of each case. Apply LUT for export without payment of taxes. If the registration has not been obtained after crossing threshold limit then you will be liable to pay tax for the relevant period.

For detailed discussion, please take phone consultation.

Vivek Kumar Arora

CA, Delhi

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I do agree with your CA. In my opinion, YouTube creator should not use section 44ad.

you should maintain proper books of accounts and get your accounts audited and file ITR3.

Please let us know in case you need any assistance.

Lakshita Bhandari

CA, Mumbai

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He is right. But you can easily restructure it. If you have mom dad bro wife any one in whose file you dont show any income then make a firm & receive part payment in new firm going forward in this way you will be able to split up your income. ( ensure to take nominal salary for working in there firm).

There are n number of ways in which you can restructure your income in such a way where legally you will not be required to pay tax.

Forming a proper structure will ensure you save good amt of Tax along with not getting sucked in unnecessary compliance burden.

BDW you are also in GST bracket right now.

Chirag Maru

CA, Raipur

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Yes you can do that there is no such list.

I dont think you are eligible for 44ADA.

We can discuss this further over phone consultation.

https://www.youtube.com/watch?v=5JMbAZPE5wo&t=100s

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