New Income Tax Rule for Influencers in India (2025)

If you’re a social media influencer, content creator, YouTuber, or digital coach in India — there’s an important tax update you should know.

🧾 What’s the New Rule?

The Income Tax Department has added a new profession code: 16021 in ITR forms (ITR-3 & ITR-4). It’s made just for social media influencers.

You now need to file your income under this new code when submitting your tax return for the year 2024–25 (Assessment Year 2025–26).

👇 Who Should Use This Code?

You must use Profession Code 16021 if you earn money through:

• Instagram or YouTube brand deals
  
• Sponsored posts
  
• Affiliate links or paid shoutouts
  
• Selling courses, eBooks, or merch
  

Basically, if you’re making money online through content — this applies to you.

🧮 How Do I File My Taxes Now?

You have two options:

📌 In the form, choose the Profession Code: 16021 – Social Media Influencer

You also need to:

• Show all your income (even barter deals)
  
• Deduct allowed expenses (camera, software, etc.)
  
• Check if audit is required (if income is too high)
  

⚠️ Important: GST & Audit

• If your yearly income is over ₹20 lakh (₹10 lakh in some states), you may need to register for GST.
  
• If your income crosses certain limits, you may also need a tax audit.
  

🎯 Why This Matters

The government is now tracking influencer income seriously. This move helps:

• Avoid tax evasion
  
• Improve digital income reporting
  
• Keep you out of trouble
  

So don’t ignore this rule. File correctly, stay compliant, and avoid penalties.

✅ Quick Summary

• ✔️ New profession code: 16021 – Social Media Influencer
  
• ✔️ Use in ITR-3 or ITR-4 while filing tax
  
• ✔️ Applies to all digital income – brand deals, affiliate, etc.
  
• ✔️ Claim your business expenses
  
• ✔️ Be ready for GST or audit if income is high
  

🔗 Useful Link:

Keywords: influencer income tax India, profession code 16021, ITR for content creators, influencer tax rules 2025, ITR filing for YouTubers India