Setting up Sole Proprietorship for Youtube Channel & availing 44AD for same


I want to start a youtube channel & expect to start earning from it via ad revenue after a few months. I had some basic questions:

  1. I want to avail taxation under 44AD. Can I avail that under my name while receiving payments in my savings account? Or is it mandatory to set up a sole proprietorship & open current account in business name for the same? (I don’t have any business or sole proprietorship at the moment).

  2. Suppose actual profit is more than 6% of revenue (all payments received digitally) i.e. suppose actual profit is 35% this year. So under 44ad should I show actual profit i.e. 35% or the minimum allowed i.e. 6%?

Hey @rajpritam45 ,

1.For your sole-proprietorship business, It is mandatory to open current account in business name for the business.
2.Under section 44AD, it is compulsory to show minimum 6% income of the turnover or actual whichever is higher. So, it is advisable to show actual profit and pay tax on the same. You may read about 44AD here.

Hope it helps.