Meet Riya – a full-time content creator, part-time chai lover, and proud Instagram influencer with over 1 lakh followers. She dances, bakes, blogs, and has finally started earning lakhs from brand deals, affiliate links, and YouTube monetization.
But as March 31 approached, Riya’s excitement turned into worry.
“Wait… do I have to file income tax like salaried people?”
Yes, Riya. And that’s where our story begins.
Chapter 1: The Tax Surprise
While scrolling through reels, Riya stumbled upon a headline:“ITR Filing 2025: New Code for Influencers Introduced!”
What?! Influencers now have their own profession code in income tax forms?
Yep! The Income Tax Department introduced a new professional code 16021 exclusively for Social Media Influencers in ITR‑3 and ITR‑4 forms.
Chapter 2: Riya’s Confusion
She opened the ITR portal. Two options stared at her:
ITR‑3: For professionals who want to deduct actual business expenses.
ITR‑4: For those who want to opt for presumptive taxation (Section 44ADA) and declare 50% of their income as profit (if below ₹50 lakhs).But a twist in the tale came in…
Although there’s a profession code for influencers, the Income Tax Act doesn’t officially list ‘content creator’ under specified professions.
So Riya wondered: “Can I still use 44ADA presumptive scheme? Or should I play safe with ITR‑3?”
That’s when she decided to consult a tax wizard—Delhi Tax Solutions.
Chapter 3: The Tax Advisor’s Wisdom
Delhi Tax Solutions broke it down for her like a pro:
Use Code 16021
Even if it’s not officially under the Act, it’s now in the ITR utility—so use it for accurate classification.
Pick the Right Form
Choose ITR‑3 if you have high expenses like camera gear, software subscriptions, or a team.Choose ITR‑4 if your income is small and you don’t want to maintain books. Just declare 50% of it as profit.
Verify AIS & Form 26AS
Check if all your income sources—collaborations, brand payments, affiliate income—are reflected. If there’s a mismatch, correct it before filing.
Keep Proofs
Even if you use presumptive tax, always keep bills and invoices safe. The tax department now uses AI to scan influencer profiles vs reported income!
Don’t Forget to Verify ITR
Filing is just step one. You must e-verify your return within 30 days—or your return is invalid.
Chapter 4: Riya’s Happy Ending
With proper guidance,
Riya:
Filed her ITR‑4 under presumptive taxation
Used code 16021
Claimed the right TDS
Verified her return on time
Slept peacefully knowing she won’t get a tax notice
Moral of the Story
Whether you’re an Instagram creator, YouTuber, vlogger, or brand influencer—income tax laws apply to you.The new code is a welcome change, but clarity is still evolving. So don’t DIY your taxes if you’re unsure.
Let Delhi Tax Solutions be Your Guide
Real professionals.
Real results.
Zero tax drama.
Need help?
Call us |
delhitaxsolutions.com |
info@delhitaxsolutions.com
