TDS on creator payments (India)

TDS (Tax Deducted at Source) is the part of a creator’s fee that the paying brand or agency deducts upfront and deposits with the government against the creator’s PAN, instead of paying the full amount to the creator.

It works under India’s income-tax law, so the deducted amount is not a fee or a penalty: it is tax paid in advance on your behalf. Whether TDS applies to a particular payment, and how much is deducted, depends on the rules in force, so confirm your own situation with a chartered accountant (CA).

If TDS applies, you receive the payment minus the deducted amount. You can generally claim credit for that deduction when you file your own income tax return, so the money isn’t lost, but it does reduce the cash that reaches your bank now.

Say you invoice a skincare brand ₹20,000 for a Reel and a smaller amount lands in your account. Before you chase the brand for a short payment, ask whether the difference is TDS. If it is, it should show up as a credit against your PAN. A CA can tell you how that credit fits into your return.

Brands often deduct TDS from creator payments, and their finance team needs correct details to do it. Send these in one email with your invoice. If you’re unsure what your case needs, ask your CA before the first deal.

• Your PAN, with your name exactly as it appears on the card. A typo can mean the tax is recorded against the wrong PAN.
• Your legal name and address as you want them in the brand’s vendor records.
• Your GSTIN if you are registered under GST, or a line saying you are not registered.
• Bank account details and UPI ID, in the same name as your PAN.
• An invoice with an invoice number, date, deliverables, fee and payment due date.

You don’t have to take a brand’s word that the tax was deposited. Creators can check the TDS credited against their PAN on the income-tax e-filing portal.

• Log in to the income-tax e-filing portal with your PAN and open the statement of tax credits linked to it.
• Look for each brand or agency that paid you. The deduction appears under whoever made the payment, so an agency deal shows the agency’s name, not the end brand’s.
• Match each entry to your invoices and bank credits: payer, amount paid and tax deducted should line up.
• Credits can take time to appear after a payment, so check again before you file your return.
• If a deduction is missing, email the brand’s finance team with the invoice number, payment date and amount. If it still doesn’t match, take it to your CA.

Factor expected TDS into your pricing if you need a specific net amount after deduction, for example to pay an editor or cover equipment EMIs. Quote your fee as the invoice amount and plan your cash flow around the lower amount you will actually receive. Your CA can help you work out the numbers for your situation.

Put TDS in writing so there are no surprises. For a small deal, a plain clause like this is enough: “The Brand may deduct TDS as required by law, will deposit it against the Creator’s PAN and will share the TDS certificate with the Creator.” For larger deals, have a CA or lawyer check the wording.

• Ask the brand or agency for a TDS certificate after deduction and keep it with the invoice, so you can claim credit for the deduction when filing.
• Rules around TDS, including whether it applies to free products and services and not just cash, have specific thresholds and categories. Confirm your situation with a CA rather than relying on general guidance.
• A short payment that isn’t TDS. If no matching credit appears against your PAN, the brand simply paid you less, and you should raise it in writing.
• Anyone asking you to pay “TDS” or a “tax charge” to release your fee. A genuine brand deducts TDS from what it pays you; it never asks you to send money first.
• Missing records. Save invoices, bank statements and TDS certificates for every deal so your CA can match them at return time.