Income Tax Return 2025: In view of the increasing earnings in the digital economy, the Income Tax Department has taken this step to further tighten tax collection for content creators or influencers and ensure tax compliance.
If you are a content creator or influencer and social media platforms are a source of income for you, then there is a big update in this tax season. Actually, the Income Tax Department has made a big change in the ITR-3 and ITR-4 forms.
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Under this, a new code 16021 has been introduced for those earning from social media. This code created by Income Tax Return (ITR) Utilities for the financial year 2024-25 (assessment year 2025-26) is specifically for those influencers who earn through promotion, product endorsement or digital content creation.
It will be easier for influencers to file returns
According to a Business Today report, Chartered Accountant Himan Singla said, these codes are now active under the ‘profession’ category in both ITR-3 and ITR-4 (Sugam). These codes have been added to both online and offline methods for filling the form. That is, now influencers will have to fill either ITR-3 or ITR-4 (Sugam) on the basis of their income and tax selection. Whereas till now there was no separate category for the income of influencers. The aim of this move is to make tax compliance easier for creators, online coaches, bloggers and gig workers.
The digital economy in the country is growing rapidly. According to a report, its market can reach $2.8 billion (about Rs 23,500 crore) by the end of 2025. Now through this new code, the Income Tax Department will be able to keep a strict watch on the income of influencers and tax evasion will also be reduced.
Which form of influencers to choose?
Social media influencers can choose either ITR-3 or ITR-4 (Sugam) to file ITR depending on their income. ITR-3 form is for those people whose source of income is a business or profession. Also, their income is from salary, property or any other source.
ITR-4 form is for those who opt for preemptive tax scheme, that is, those who want to pay a part of their income as tax. There is no need to maintain detailed accounting in this. If you opt for preemptive tax and your income is up to Rs 50 lakh, then fill ITR-4 form. If the income is more than this and from multiple sources, then use ITR-3 form.
Those opting for presumptive taxation under section 44ADA should note that it is applicable to professionals with gross receipts up to Rs 50 lakh and income up to Rs 75 lakh if their cash receipts are less than 5 per cent of their gross receipts.
The most important thing during this time is that before filing tax return, do not forget to check your Annual Information Statement (AIS) and Form 26AS because it contains all the information related to TDS and your income.
Why is this change necessary?
The number of people earning more than 20 lakhs annually from social media has increased rapidly in the last 2 years. Some earn crores, so they should be brought under the tax net. Earlier, influencers or traders used to file returns in the ‘other’ category. Now, with the implementation of a separate code, the Income Tax Department will be able to find out their actual income, which will make it easier to collect taxes.
Full list of new codes
- Social Media Influencers – 16021
- Futures-Options Trader (F&O) – 21010
- Share purchase and sale- 21011
- Speculative Business – 21009
- Commission Agent- 09029
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