TDS for Influencers and Content Creators in India: What Creators Should Know

You invoice a brand for ₹50,000 and receive ₹49,500, or ₹45,000. Nothing went wrong: the brand most likely deducted tax at source (TDS) and deposited it against your PAN. Understanding TDS helps you read payments correctly, keep the right records and claim the credit when you file your return.

Important: this is general information, not tax advice. Tax treatment depends on your income, how payments are classified, your business structure and the facts of each deal. Rules were checked against official sources in September 2026. Please consult a chartered accountant or tax professional for your situation.

Quick answer

TDS (tax deducted at source) is income tax that a payer deducts from certain payments and deposits with the government against the recipient's PAN. Indian brands and agencies paying creators may deduct TDS depending on how they classify the payment (for example as a payment to a contractor, as professional fees, as commission, or, for gifted products, as a business benefit) and whether thresholds are crossed. From 1 April 2026 these rules sit in section 393 of the Income-tax Act, 2025. TDS is not an extra tax: it's credited against your final tax liability, and the payer should give you a TDS certificate (now Form No. 131).

What changed in 2026

• The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026. For transactions up to 31 March 2026, the old Act still applies.
• TDS provisions that were spread across sections like 194C, 194H, 194J and 194R are now consolidated in section 393.
• The Income-tax Rules, 2026 renumbered forms. The non-salary TDS certificate earlier called Form 16A is now Form No. 131.
• Many older blog posts still quote the 1961 section numbers. The underlying categories are similar, but check current thresholds and rates rather than relying on old articles.

Official references: the Income Tax Department's page on Form No. 131 and its FAQs on forms under the Income-tax Rules, 2026.

When TDS can apply to creator income

The payer decides which category applies based on the nature of the payment. Categories creators commonly encounter are below, with rates and thresholds as generally reported for tax year 2026-27 for resident payees who have provided their PAN. Treat this as orientation, not advice, and confirm the current position.

• Different payers may classify similar work differently; ask upfront which category they'll use.
• If you don't provide your PAN, a higher rate can apply.
• Individuals paying for purely personal purposes generally don't deduct TDS, but businesses paying you usually are expected to.
• Payments from foreign brands generally don't involve Indian TDS, but that income is still taxable in India if you're a resident. Get advice on foreign income.

Gifted products and TDS

Gifted products you keep can be treated as a business benefit. When the value a brand gives you in a year crosses the threshold, it may need to deduct TDS on that value. Because there's no cash payment to deduct from, brands sometimes ask the creator to pay the TDS amount, or pay it themselves. Products you return after review are generally treated differently from products you keep. Keep a log of gifted items and their approximate value.

Agencies and TDS

If an agency pays you, the agency is usually the deductor, not the brand. Your TDS certificate should come from whoever paid you, and your invoice should be addressed to them. Check this when you sign, especially if the contract is with the brand but payment comes from an agency.

Your TDS certificate (Form No. 131)

• The deductor files quarterly TDS statements and generates the certificate from the TRACES portal.
• The certificate shows your PAN, the amount paid, the TDS deducted and deposited, and the period.
• Ask for it if you don't receive it. It's the deductor's responsibility to issue it.
• Check that the PAN and amounts are correct; if not, ask the deductor to correct their TDS statement.

Checking your TDS credit

Log in to the Income Tax e-filing portal and check your annual tax statement and Annual Information Statement (AIS) for TDS credited against your PAN. Compare it with your invoices and payments received. Mismatches are common, and are much easier to fix during the year than at filing time.

How TDS affects your invoices and payments

Invoice amount (fee): ₹50,000 (+ GST if you're registered)
Payer treats it as a payment to a contractor (individual): TDS at 1% on the fee = ₹500
Amount received: ₹49,500 (+ GST, if charged)

The ₹500 appears against your PAN and is credited when you file your return.

If the same payment were treated as professional fees at 10%: TDS ₹5,000, received ₹45,000.

Your invoice should show the full fee. Don't reduce it yourself; the payer deducts TDS. How to invoice brands as a creator covers invoice fields.

Records to keep

• Contracts, POs and email confirmations of scope and fee.
• Every invoice you raise, numbered sequentially.
• Bank statements showing amounts received.
• A TDS register: payer, invoice, amount, TDS deducted, certificate received (yes/no).
• Form No. 131 certificates.
• A log of gifted products and their approximate value.
• Expenses related to your creator work (equipment, software, travel), with bills.

General information vs advice you need

GST is a separate tax with separate rules; see GST for influencers and creators in India. For negotiating when and how you're paid, see creator payment terms.