Side income is great — surprise tax notices are not. Here is how each popular way of earning is taxed, in simple words.
Ad revenue, brand deals and free products you keep are business income. GST registration is needed once yearly receipts cross ₹20 lakh (₹10 lakh in special category states), and exports of such services may need an LUT.
Tip: Keep a separate bank account; brands may deduct TDS — claim it in your ITR.
Professionals with receipts up to ₹75 lakh (if cash receipts are within 5%) can use presumptive taxation under section 44ADA and declare 50% as profit — no detailed books needed.
Tip: Issue invoices, track TDS in Form 26AS / AIS.
Short-term gains on listed shares and equity funds (held up to 12 months) are taxed at 20%. Long-term gains above ₹1.25 lakh a year are taxed at 12.5%.
Tip: Download the capital gains statement from your broker before filing.
Treated as business income, with a tax audit if certain limits are crossed. Losses can be carried forward only if you file your ITR on time.
Tip: File ITR-3, not ITR-1 or ITR-2.
You get a flat 30% standard deduction on the net annual value for repairs, plus home-loan interest where allowed.
Tip: Tenant companies may deduct TDS on rent.
Gains are taxed at a flat 30% (plus cess) with no deduction except cost, and losses cannot be set off. 1% TDS applies on transfers.
Tip: Keep exchange statements for every trade.
Business income. GST rules for marketplace sellers are stricter — check whether you need registration before you start.
Tip: Use our free GST invoice generator for direct sales.
Taxed at your slab rate. Banks deduct TDS above set limits; submit Form 15G/15H (Form 121 under the new Act) if your income is below the taxable limit.
Tip: Interest shows in AIS — always report it.
Yes. Income from YouTube, freelancing, trading or online selling is taxable in India like any other income. If your total income is below the basic exemption limit, no tax may be payable — but filing an ITR is still useful for refunds and loans.
For services, once your aggregate turnover crosses ₹20 lakh in a year (₹10 lakh in special category states). Some activities, such as selling goods to other states, need registration from the start.
Freelancers using presumptive taxation file ITR-4 (if eligible); traders and businesses with full books file ITR-3; capital gains without business income need ITR-2.
Checked on 28 October 2026.
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