TDS on Creator Payments in India: What Every Creator and Brand Needs to Know

Why This Matters Now

Tax compliance around creator payments has received increasing attention from the Income Tax Department in recent years. The shift from informal cash payments to digital transactions has made creator income more visible to tax authorities, and both brands and creators are increasingly being asked about their compliance positions.

Getting this wrong — whether as a brand that didn't deduct where required, or as a creator who didn't declare income — can result in demands, interest charges, and penalties. Understanding the basics is worthwhile.

What is TDS?

Tax Deducted at Source (TDS) is a mechanism where the party making a payment deducts a specified percentage as income tax before paying the recipient. The deductor deposits this amount with the government. The recipient can claim credit for TDS deducted when filing their Income Tax Return.

For example: if a creator earns ₹10,00,000 in a financial year through an e-commerce operator platform and TDS applies at 0.1%, the platform deducts ₹1,000. The creator receives the net amount. The ₹1,000 is deposited with the government on the creator's behalf and credited to them when they file their ITR.

Which Section Applies to Creator Payments via GigTryst?

GigTryst operates as an e-commerce operator. Payments to creators through the platform are subject to s.393(1) Table Sl. No. 8(v) of the Income-tax Act 2025 (formerly known as Section 194-O). The key terms:

What About Direct Brand Payments (Outside GigTryst)?

For creators paid directly by brands — not through a platform — a different section may apply. Section 194J (Professional / Technical Services) has historically been applied to creator fees by some brands, at 10%, with a threshold of ₹50,000 per year per payee (raised from ₹30,000 by Finance Act 2025). The no-PAN rate under 194J is 20% — significantly higher than the e-commerce provision rate.

This area has nuance and brands should consult their own CA about which section applies to their specific arrangements. The general principle is that using a structured platform like GigTryst provides clarity about which obligation applies and who handles it.

TDS Certificates

TDS certificates (Form 131, formerly Form 16A) are issued quarterly, not per transaction. They are downloaded from the TRACES portal. Creators who earn below the ₹5,00,000 threshold will not receive a TDS certificate because no deduction applies. Do not expect a certificate for every payout — check your TRACES account quarterly.

What About GST?

GST adds a separate layer of obligations. Key points:

• GigTryst's platform commission is a taxable service. GigTryst charges GST on its commission invoices (SAC code 998362)
• Creators who are GST-registered issue their own Tax Invoice for their services. Creators below the GST registration threshold receive a commercial invoice instead
• GST-registered creators should also note TCS (Tax Collected at Source): under certain e-commerce provisions, 0.5% TCS may be collected and deposited to the creator's GST cash ledger. This appears on payouts and can be claimed against your GST liability
• The specific SAC codes applicable to creator services are subject to CA confirmation — consult your own adviser for your specific category of content

What GigTryst Handles

On eligible transactions, GigTryst is designed to handle the TDS deduction automatically at the point of content approval. Creators still need to declare their total income (including platform earnings) in their ITR, pay advance tax as applicable, and claim TDS credit through their TRACES account. GigTryst handles the deduction — you still declare the income.