IT Department Cracks Down Tax Evasion Against 15 Social Media Influencers

NEW DELHI: According to a report, 15 social media influencers have received notifications from the Income Tax department for paying zero or "substantially low" tax while earning sizable payments from businesses whose items they promoted through their posts.

On the list are prominent fashion influencers, health and lifestyle coaches, travel influencers, and Bollywood influencers. Three of these individuals, according to sources, had not submitted any taxes, while the remainder had understated their income. Another 30 influencers are being scrutinised, the official stated.

According to reports, the income tax division is employing data analytics to review social media influencers' accounts to look for any discrepancies between their social status and the ITRs that have been filed. To determine if social media influencers are underreporting their income or not, they use data analytics.

The 15 social media celebrities who received income tax warnings are from a variety of industries, including Bollywood, fashion, lifestyle, travel, etc. The income tax division has requested information from the influencers regarding their earnings from sponsored material, brand endorsements, etc. in a notice. The income tax division has also requested information from these 15 taxpayers regarding money spent on travel, clothing and other items, lodging, etc. Because of their authority, knowledge, position, or connection to their audience, social media influencers and online content providers have the ability to speak to and influence their audiences' thoughts about a product, service, brand, or experience online.

This action by the income tax department against media influencers is intended to increase income tax compliance among high earners who hide their ITR while evading taxes.

Reactions to the ITD's campaign against social media influencers have been conflicted. In order to ensure that everyone pays their fair amount of taxes, some people have praised the decision. Others have criticised the action, claiming it violates people's privacy and that the ITD shouldn't be keeping track of their social media activities.

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