Streaming Donations Tax Guide India: ITR Filing for Streamers (2026)

India's live streaming scene is booming. Whether you stream gaming on YouTube, do music performances on Instagram Live, or host talk shows on Twitch — if you are earning money from it, the Income Tax Department wants its share. Most Indian streamers start accepting UPI donations, Super Chats, and sponsorships without thinking about taxes. Then tax season arrives, and the panic sets in.

This guide covers everything you need to know about taxes on streaming income in India for the Financial Year 2025-26 (Assessment Year 2026-27). We will break down what's taxable, how to classify your income, when GST kicks in, which ITR form to file, and what expenses you can deduct. Whether you are earning Rs. 5,000 or Rs. 5,00,000 per month from streaming, this guide is for you.

1. Are Streaming Donations Taxable in India?

Yes, streaming donations are taxable in India. This is the most common misconception among Indian streamers. Many believe that because viewers send money voluntarily, it counts as a "gift" and is tax-free. This is incorrect.

Under the Income Tax Act, 1961, the word "donation" in the streaming context is misleading. When a viewer sends you Rs. 500 during your live stream, they are paying for entertainment — it is essentially income earned through your streaming activity. The fact that the amount is voluntary does not make it a tax-free gift.

Why "Donations" Are Not Gifts Under Tax Law

Under Section 56(2) of the Income Tax Act, gifts received from non-relatives exceeding Rs. 50,000 in a financial year are taxable. But streaming donations are not even classified as gifts in most cases. They are considered income because:

• You are providing a service (entertainment, gaming content, interaction) in exchange for the payment.
• You actively solicit donations by displaying your UPI QR code or donation link.
• The income is recurring and connected to your streaming activity.
• Platforms like YouTube Super Chat explicitly treat these as creator earnings, not gifts.

2. Types of Streaming Income

Before we dive into tax calculations, let's identify all the ways Indian streamers typically earn money. You need to report all of these income streams in your ITR:

The key takeaway: UPI donations are the one major income source where no TDS is deducted at source. This means the full responsibility of reporting and paying tax on UPI donation income falls on you. For a deeper comparison of UPI donations vs platform-based income, check out our guide on how to make money streaming in India.

3. Tax Classification: Hobby vs Business Income

One of the biggest decisions you need to make (ideally with a CA's guidance) is whether your streaming income is a hobby or a business. This classification affects which ITR form you file, what deductions you can claim, and whether you need GST registration.

Income from Other Sources (Hobby/Casual Streaming)

If streaming is a side activity and not your primary source of income, your streaming earnings may be classified under "Income from Other Sources" (Section 56 of the Income Tax Act). This typically applies when:

• You stream occasionally or part-time alongside a full-time job or studies.
• Your streaming income is relatively small (under Rs. 2-3 Lakhs per year).
• You do not have a formal business setup or dedicated streaming space.
• Streaming is not your primary livelihood.

Under this classification, you file ITR-1 (Sahaj) or ITR-2. However, you cannot claim business expenses as deductions under "Income from Other Sources." This means you cannot deduct the cost of your PC, camera, microphone, internet bill, or software subscriptions.

Profits and Gains of Business or Profession (Full-Time/Serious Streaming)

If streaming is your primary income source or a significant, regular activity, it should be classified under "Profits and Gains of Business or Profession" (Section 28). This classification is appropriate when:

• Streaming is your full-time occupation or primary income source.
• You stream on a regular schedule (daily or several times per week).
• You have invested in streaming equipment and setup.
• Your annual streaming income exceeds Rs. 2-3 Lakhs.
• You actively promote your streams and grow your channel as a business.

Under this classification, you file ITR-3 and can claim all legitimate business expenses as deductions, which significantly reduces your taxable income. You may also opt for the Presumptive Taxation Scheme under Section 44ADA if your gross receipts are under Rs. 75 Lakhs (with digital transactions), which allows you to declare 50% of gross receipts as income without maintaining detailed books.

4. Income Tax Slabs for Streamers (FY 2025-26)

India has two tax regimes: the Old Regime and the New Regime. The New Regime is the default since FY 2023-24. Here are the applicable slabs for FY 2025-26 (Assessment Year 2026-27):

New Tax Regime (Default)

Under the new regime, the standard deduction is Rs. 75,000. Additionally, income up to Rs. 12,00,000 (Rs. 12,75,000 including standard deduction for salaried/pensioners) is effectively tax-free due to the Section 87A rebate.

Old Tax Regime (Optional)

The old regime allows deductions under Sections 80C (Rs. 1.5 Lakh), 80D (health insurance), HRA, and more. If you have significant deductions (home loan, insurance, PPF, ELSS), the old regime may result in lower tax. However, for most streamers without major deductions, the new regime with its higher exemption limit is more beneficial.

5. GST for Streamers: When and How

GST (Goods and Services Tax) is a separate tax obligation from income tax. Many streamers overlook GST entirely, but it becomes mandatory once you cross certain thresholds.

When GST Registration Is Required

You are required to register for GST when your aggregate annual turnover exceeds Rs. 20 Lakhs (Rs. 10 Lakhs for special category states like those in the North-East). "Aggregate turnover" includes all your streaming income — UPI donations, AdSense, sponsorships, memberships, merchandise, and any other revenue.

However, there is an important exception: if you provide services to clients outside India (which includes AdSense income from Google, Twitch payouts from Amazon, etc.), you may need to register for GST regardless of turnover, as these are classified as export of services. Consult a CA to determine if this applies to your specific situation.

Which Services Are Covered?

Streaming income falls under SAC Code 999614 (Online content — entertainment services) or SAC Code 998361 (Performing arts & live entertainment). The applicable GST rate is 18%. Services covered include:

• Live streaming entertainment services
• Content creation and digital media services
• Brand sponsorship and advertising services
• Affiliate marketing and commission-based services
• Merchandise sales (if applicable)

GST on International Income (AdSense, Twitch)

Income from international platforms like Google AdSense, Twitch, and international sponsors is treated as export of services under GST law. Export of services is technically a zero-rated supply, which means:

• You charge 0% GST on the export (you do not add GST to your invoice to Google/Twitch).
• You can still claim Input Tax Credit (ITC) on your business expenses within India.
• You may be eligible for a GST refund on input credits related to export services.

For this to qualify as export of services, the payment must be received in convertible foreign exchange (which AdSense and Twitch payments are, since they are received via international wire transfers).

GST on UPI Donations

This is a gray area. UPI donations from Indian viewers for live streaming services could be considered taxable under GST if you are registered. However, many CAs argue that voluntary donations without a specific service contract may not attract GST. If you are GST-registered and earning above Rs. 20 Lakhs, work with your CA to determine the correct treatment for UPI donations specifically.

6. TDS on Streaming Income

TDS (Tax Deducted at Source) is tax that is deducted before you receive your payment. Understanding where TDS applies — and where it does not — is crucial for accurate ITR filing.

TDS on YouTube/Google Payments

When Google pays you AdSense or Super Chat revenue, TDS is deducted in two ways:

• US Withholding Tax: Google may withhold up to 24% on US-sourced income if you have not submitted a W-8BEN form, or 15% if you have (due to the India-US DTAA — Double Taxation Avoidance Agreement). This applies to revenue earned from US viewers.
• Indian TDS: When Google India makes payments to Indian creators, TDS under Section 194J (fees for professional/technical services) at 10% may apply on the Indian component of payments.

The TDS deducted by Google/YouTube appears in your Form 26AS and AIS (Annual Information Statement). You can claim credit for this TDS when filing your ITR, reducing your final tax liability.

TDS on Sponsorship Income

When Indian brands pay you for sponsorships, they are required to deduct TDS under:

• Section 194J: 10% TDS on fees for professional services (applicable to content creation services).
• Section 194R: 10% TDS on benefits/perquisites if a brand sends you products worth more than Rs. 20,000 in a financial year.

No TDS on Direct UPI Donations — The Double-Edged Sword

This is where UPI donations are unique. When a viewer sends you Rs. 500 via Google Pay during your stream, no TDS is deducted. You receive the full Rs. 500 in your bank account.

This is an advantage because you have full control over the money immediately. But it is also a responsibility — since no TDS is deducted, you are entirely responsible for reporting this income and paying taxes on it. The Income Tax Department can track UPI transactions through your bank statements and AIS, so not reporting UPI income is risky.

7. How to File ITR as a Streamer

Filing your ITR correctly is essential. Here's a step-by-step breakdown of the process for streamers:

Step 1: Choose the Right ITR Form

Step 2: Gather Your Documents

Before you start filing, collect the following:

• PAN Card and Aadhaar (linked)
• Bank statements for all accounts receiving streaming income
• Form 26AS — shows all TDS deducted on your income (download from incometax.gov.in)
• AIS (Annual Information Statement) — shows all financial transactions the IT department knows about
• YouTube/Twitch/platform earnings reports — download from your creator dashboard
• Stream Alert donation history — export your complete UPI donation records
• Invoices for business expenses — equipment, software, internet bills
• Sponsorship contracts and invoices
• GST returns (if GST-registered)

Step 3: Calculate Total Income

Add up all your streaming income for the financial year (April 1 – March 31):

• Total UPI donations received (from bank statements or Stream Alert records)
• Total YouTube/Twitch/platform payouts (from platform dashboards)
• Total sponsorship income (from contracts and bank credits)
• Total affiliate commissions
• Any other streaming-related income

Step 4: Claim Deductions (Business Income Only)

If you are filing under business income (ITR-3), subtract your legitimate business expenses from your total income. We cover deductible expenses in detail in the next section.

Step 5: File on the Income Tax Portal

File your ITR at incometax.gov.in before the due date:

• July 31 — Due date for individuals not requiring audit
• October 31 — Due date if tax audit is required (turnover exceeds Rs. 1 Crore, or Rs. 10 Crore if 95%+ transactions are digital)

You can file yourself through the e-filing portal, use tax filing software like ClearTax or Quicko, or hire a CA to file on your behalf.

8. Deductible Expenses for Streamers

If you classify your streaming income as business income (ITR-3), you can deduct all expenses that are "wholly and exclusively" incurred for the purpose of your streaming business. This is one of the biggest advantages of business classification. Here are common deductible expenses for Indian streamers:

Record Keeping Tips

• Keep all invoices and receipts for at least 6 years (the period for which the IT department can reassess your returns).
• Maintain a separate bank account for streaming income and expenses. This makes tracking much easier. Read our guide on setting up a UPI Business account for details.
• Use accounting software or at minimum a spreadsheet to track monthly income and expenses.
• Document the business purpose of each expense. For example, if you buy a game, note that it was purchased for streaming content.
• For shared expenses (internet, electricity, phone), maintain a reasonable split between personal and business use. A 50-70% business allocation is commonly accepted if you stream regularly.
• Export your Stream Alert donation history regularly. Having a clean, organized record of all UPI donations makes tax filing significantly easier.

9. Business Account Advantage for Tax Tracking

One of the best things you can do for tax compliance is to separate your streaming income from your personal finances. A UPI Business account (Google Pay Business, Paytm Business, PhonePe Business) provides several tax-related benefits:

Why a Business Account Helps at Tax Time

• Clean transaction records: All UPI donations go into one account, making it easy to calculate total streaming income without manually filtering personal transactions.
• Automatic categorization: Business account transactions are clearly marked as business income in your bank statements, which aligns with how you report them in your ITR.
• Easier audit trail: If the Income Tax Department ever questions your returns, having a dedicated business account with organized records is far more convincing than mixed personal/business transactions.
• Higher transaction limits: Business UPI accounts support Rs. 2-5 Lakhs per day vs Rs. 1 Lakh for personal accounts, so you won't hit limits during big streams.
• Reduced bank freeze risk: Business accounts are designed for receiving many payments, so banks are less likely to flag your transactions as suspicious. Read more in our guide on how to avoid bank account freezes.

Setting up a Business UPI account is free and takes about 15-30 minutes. Check our complete UPI Business account setup guide for step-by-step instructions.

10. Common Tax Mistakes Streamers Make

These are the most frequent tax mistakes we see Indian streamers make. Avoid them to stay compliant and minimize your tax burden:

Mistake 1: Not Reporting UPI Donations at All

This is by far the most common and most dangerous mistake. Many streamers assume that since no TDS is deducted on UPI payments, the government does not know about them. This is wrong. The Income Tax Department receives data from banks and UPI networks through the Annual Information Statement (AIS). Large or frequent UPI credits will show up in your AIS, and if they do not match your ITR, you may receive a notice.

Mistake 2: Treating All Income as "Gifts"

As discussed earlier, streaming donations are not tax-free gifts. Classifying them as gifts to avoid tax is misreporting and can lead to penalties under Section 270A (up to 200% of the tax amount) if the IT department determines it was done deliberately.

Mistake 3: Not Paying Advance Tax

If your tax liability exceeds Rs. 10,000 in a year, you must pay advance tax in quarterly installments. Streamers who earn through UPI donations (no TDS) often owe significant advance tax. Missing advance tax deadlines results in interest charges of 1% per month under Sections 234B and 234C.

Mistake 4: Filing the Wrong ITR Form

Filing ITR-1 when you should be filing ITR-3 (or vice versa) can result in your return being treated as defective. If you have business income, you must use ITR-3 or ITR-4. If you file ITR-1 and report streaming income as "Other Sources," you cannot claim any business deductions.

Mistake 5: Not Claiming Legitimate Expenses

Many streamers who do file under business income forget to claim deductible expenses like internet bills, equipment depreciation, game purchases, and software subscriptions. These deductions can save you lakhs in taxes over time.

Mistake 6: Ignoring GST Obligations

Once your turnover crosses Rs. 20 Lakhs, GST registration is mandatory. Continuing to operate without GST registration after crossing the threshold can result in penalties equal to the GST amount due or Rs. 10,000, whichever is higher.

Mistake 7: Not Keeping Records

The Income Tax Department can reassess your returns for up to 6 years (or more in cases of serious evasion). If you cannot produce records of your income and expenses during a reassessment, you lose the ability to claim deductions and may face additional penalties.

Mistake 8: Missing Foreign Income Reporting

If you earn from YouTube AdSense, Twitch, or international sponsors, you must report this as foreign income in your ITR. You also need to report foreign bank accounts (if applicable) in Schedule FA (Foreign Assets). Failure to report foreign income/assets can attract penalties under the Black Money Act.

11. Frequently Asked Questions

Q: I earned only Rs. 50,000 from streaming this year. Do I still need to file ITR?

If your total income from all sources (including any salary, freelance work, interest income, etc.) exceeds the basic exemption limit (Rs. 3,00,000 under new regime or Rs. 2,50,000 under old regime), you must file ITR. Even if your total income is below the limit, it is good practice to file a nil return — it serves as proof of your income if you apply for loans or visas in the future. Also, if TDS has been deducted on any of your income, you should file ITR to claim a refund.

Q: Can I use the Presumptive Taxation Scheme (Section 44ADA) for streaming?

Yes, if your gross receipts from streaming do not exceed Rs. 75 Lakhs (when at least 95% of receipts are through digital modes like UPI and bank transfers, which most streaming income is). Under Section 44ADA, you declare 50% of your gross receipts as taxable income and do not need to maintain detailed books of accounts. This simplifies filing significantly. However, if your actual expenses are more than 50% of your receipts, regular business filing (ITR-3 with actual expense deductions) may save you more tax. A CA can help you decide.

Q: Do I need a PAN card to receive donations?

You do not need a PAN card to receive UPI donations, but you absolutely need one to file income tax returns. If you are earning any taxable income from streaming, apply for a PAN card immediately if you do not already have one. PAN is also required for GST registration and opening a business bank account.

Q: I stream as a hobby alongside my full-time job. How do I report streaming income?

Report your salary income in the "Income from Salary" section and your streaming income under "Income from Other Sources" (if it's a small, casual amount) or "Profits and Gains of Business or Profession" (if it's regular and significant). If reporting as other income, use ITR-2. If reporting as business income, use ITR-3. You cannot use ITR-1 if you have business income.

Q: How do I handle taxes on Super Chat income where YouTube takes a 30% cut?

You are only taxed on the amount you actually receive, not the gross amount the viewer paid. For example, if a viewer sends a Rs. 1,000 Super Chat, YouTube keeps Rs. 300 (30% platform fee) and pays you Rs. 700. You report Rs. 700 as your income. If filing as business income, the Rs. 300 platform fee is already accounted for since you are reporting net receipts. The same applies to Twitch's 50% cut on subscriptions.

Q: Can I claim my gaming PC as a business expense?

Yes, if you file under business income (ITR-3). Computers and laptops get 40% depreciation per year under the Written Down Value (WDV) method. If the PC is used both for personal and business purposes, you should claim only the business-use percentage (e.g., 60-70% if you stream daily). Keep the purchase invoice as proof. If you bought the PC before starting your streaming business, you can still claim depreciation on the WDV as of the date you started using it for business.

Q: What happens if I don't pay taxes on my streaming income?

The consequences of not paying taxes on streaming income include:

• Interest: 1% per month on unpaid tax under Sections 234A, 234B, and 234C.
• Late filing fee: Rs. 5,000 under Section 234F (Rs. 1,000 if income is under Rs. 5 Lakhs).
• Penalty for underreporting: 50% of the tax amount under Section 270A.
• Penalty for misreporting: 200% of the tax amount under Section 270A.
• Prosecution: In severe cases of tax evasion (willful failure to file returns), prosecution under Sections 276C and 276CC with imprisonment up to 7 years.

The IT Department is increasingly tracking digital payments and online income. It is always better to file voluntarily, even if late, than to wait for a notice.

Q: Should I hire a CA or can I file taxes myself?

If your streaming income is simple and small (under Rs. 5 Lakhs per year, no GST, just UPI donations), you can likely file yourself using platforms like ClearTax or Quicko. However, we strongly recommend hiring a CA if:

• Your total streaming income exceeds Rs. 5-10 Lakhs per year.
• You have multiple income streams (salary + streaming + AdSense + sponsorships).
• You need to decide between old and new tax regime.
• You are approaching or have crossed the GST threshold.
• You have international income (AdSense, Twitch).
• You want to optimize your tax structure for future growth.

A good CA who understands digital creator income typically charges Rs. 3,000 – Rs. 10,000 for annual filing and can often save you more than their fee in deductions and tax planning. This fee itself is a deductible business expense.