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Feb 13, 2025 New Income Tax Bill to bring social media influencers under strict tax net – freebies and barter deals to be taxable

Income Tax

Social media influencers and digital content creators have become some of the highest-earning individuals in today’s economy, leveraging brand deals, sponsorships, and digital platforms to generate substantial income. From luxury brand collaborations to big-money endorsement deals, the influencer industry has grown into a powerhouse. However, with this success comes increased scrutiny—especially from tax authorities. Now, the Income Tax Bill, 2025 has proposed to bring influencers firmly under the tax net. Freebies, barter deals, and social media earnings will no longer go unnoticed, and influencers will be required to disclose and pay taxes on their income just like any other business. “The Income Tax Bill, 2025 does not explicitly mention ‘influencers’ or ‘brand partnerships,’ as far as direct tax is concerned, but its provisions could have a significant impact on digital content creators based on general tax principles and interpretations,” Siddharth Chandrashekhar, advocate and counsel, Bombay High Court and panel counsel for CBIC & CBDT, told BrandWagon Online.

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