The Income Tax Department has introduced a dedicated profession code (16021) for Social Media Influencers in the ITR-3 form. If you earn from Instagram, YouTube, or brand collaborations, you must understand these new rules before filing your taxes for FY 2024-25.

This guide simplifies everything influencers need to know about the new tax compliance.

Why This Change?

With influencer marketing booming in India, the government wants better tracking of influencer earnings from brand deals, affiliate links, and sponsorships. The new profession code ensures more transparency and helps influencers file taxes correctly.

What’s New for Influencers in ITR Filing 2025?

✅ 1. New Profession Code (16021)

• You must now select Profession → Social Media Influencer (Code: 16021) while filing ITR-3.

✅ 2. Not a “Specified Profession” under Section 44AA

• Influencing is recognized as a profession, but not under the "Specified Professions" list like doctors or lawyers.

✅ 3. No Presumptive Taxation under Section 44ADA

• Influencers cannot opt for presumptive taxation (44ADA), which allowed professionals to declare 50% of income as profit.

✅ 4. Tax Audit Applicability

• A tax audit is mandatory if your annual receipts exceed ₹50,00,000.

✅ 5. Maintaining Books of Accounts is Compulsory If:

• Income > ₹1.2 lakh, or

• Turnover > ₹10 lakh
  (Double limits apply for Individuals/HUFs.)

Tax Filing Checklist for Social Media Influencers

1. Track All Sources of Income
   Include brand deals, affiliate income, sponsored posts, and YouTube/Instagram ad revenue.

2. Issue GST-Compliant Invoices
   If your annual revenue crosses ₹20 lakh (₹10 lakh in special category states), GST registration may be required.

3. Keep Expense Records
   You can claim deductions on internet bills, camera equipment, software tools, and marketing expenses.

4. Maintain Proper Books or Use Accounting Software
   Avoid manual errors by switching to cloud-based tools like hisabkitab.

5. Consult a CA if Audit Applies
   Ensure proper compliance if your receipts cross the ₹50 lakh audit limit.

How hisabkitab Can Simplify Tax Compliance for Influencers

hisabkitab, a cloud-based accounting software, helps influencers:
✅ Track income from multiple sources
✅ Generate GST-ready invoices instantly
✅ Maintain books of accounts automatically
✅ Share tax-ready reports with CAs in one click

FAQs: ITR Filing for Social Media Influencers (2025)

1. Which ITR form should social media influencers file?

Influencers earning professional income should file ITR-3.

2. Can influencers choose presumptive taxation under Section 44ADA?

No. Influencing is not a specified profession, so 44ADA presumptive taxation is not allowed.

3. Do influencers need a tax audit?

Yes, if annual receipts exceed ₹50,00,000.

4. Are influencers required to maintain books of accounts?

Yes, if income > ₹1.2 lakh or turnover > ₹10 lakh.

5. What profession code should influencers select in ITR-3?

Use Code 16021 – Social Media Influencers.

Final Thoughts

The new profession code marks a shift toward stricter monitoring of influencer income. If you are earning through brand collaborations, YouTube, or Instagram promotions, start maintaining proper accounts now to avoid penalties.

Using the right accounting software for influencers like hisabkitab can save hours of manual work, keep your books tax-ready, and simplify compliance for AY 2025-26. Whether you are a small creator or a big digital influencer, accounting for influencers is now as crucial as creating great content.

Switch to hisabkitab today to stay tax-compliant effortlessly.