In an effort to crack down on tax evasion, the Income Tax Department has commenced a pan-India exercise zeroing in on social media influencers who are allegedly evading taxes. Sources close to CNBC-TV18 have revealed that the department has extended its activities across the country after successfully tracking a group of influencers in Kerala.
According to the sources, the IT department recently conducted searches on 13
social media influencers hailing from Kerala during the early part of June.
The operation was carried out as part of a wider investigation into the alleged non-payment of taxes by individuals who have gained significant wealth through their online presence.
The IT department claims that these
influencers, who have amassed large followings on platforms such as Instagram and YouTube, have been generating substantial incomes through brand endorsements, sponsored content and other forms of online promotions. However, the department alleges that many of them have not been fulfilling their tax obligations.
Since then, the Ministry of Electronics and Information and Technology issued a clarification on such ads, saying the logos did not equate to an endorsement of the individual.
In January 2023, the Ministry of Consumer Affairs and the Central Consumer Protection Authority issued guidelines, regulating the disclosure of endorsements and advertisements promoted by celebrities and influencers.
Failure to comply with those guidelines could lead to a fine of Rs 10 - 50 lakh and a stop from doing any endorsements in the future.
