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social media income

sarah (student) (37 Points)

04 August 2018

how income earned from any social media is taxed like earnings from YouTube , savvn app etc

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7 Replies

Ashwin Kumar (168 Points)
Replied 04 August 2018

IFOS INCOME

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sarah (student) (37 Points)
Replied 04 August 2018

thanks but is there any section related to that

Ashwin Kumar (168 Points)
Replied 04 August 2018

it's just simple if it business is social media then it's PGBP if not and you cant bring the income under the definition any other four heads then it's ultimately taxed as IFOS

Arun Kumar (48 Points)
Replied 05 August 2018

what is IFOS. pls define it?

Kartikeya Bansal (25 Points)
Replied 05 August 2018

'Income From Other Sources'

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Ashwin Kumar (168 Points)
Replied 05 August 2018

well in income tax act we have 5 heads under which we categorise the income recieved by the assessee based on the definition given in the respective heads. salaries, income from house property, profit and gains from business and profession, capital gains and income from other sources. these are the five heads. if an income recieved by the assessee could not be brought under the definition of the first four heads and if the said income is not exempted under any provisions of the act, then it will be taxed under the head income from other sources (hereinafter IFOS). IFOS is a residual head to tax income. Gift recieved amounting to ₹ 1,00,000 cannot be taxed under the first four heads. so it will be taxed under IFOS.