Income Tax Dept Introduces New Code for “Social Media Influencers” in ITR

The Income Tax Department has launched the Income Tax Return (ITR) utility with new codes for ‘Social Media Influencers’ in the ITR-3 Form. By Selecting the appropriate code, it will ensure the following:

• Proper classification of income
• Faster and correct ITR processing
• Less risk of tax survey or mismatches

Important points to be noted at time of ITR Filing:

• It is a profession but not a “Specified Profession” as per section 44AA.
• You cannot apply for the Presumptive Taxation Scheme u/s 44ADA.
•  Tax Audit is applicable above the receipt of Rs. 50,00,000
• Maintaining Books of Accounts is compulsory if Income is more than Rs. 1.2 Lakh or Turnover/gross receipt is more than Rs. 10 Lakh (Limit is Double for Individual/HUF)

ITR-3 is an income tax return form used in India for individuals and Hindu Undivided Families (HUFs) who have income from the following sources:

• Income from business or profession
• Income from salary or pension
• Income from house property
• Income from capital gains

Who is eligible to file ITR-3?

• Individuals/HUFs who run a business or profession
• Those receiving remuneration, interest, or commission from a partnership firm
• Individuals with multiple income from multiple sources, such as Salary, pension, house property, etc.

New ‘Nature of Business/Profession’ codes are as follows: