Social media influencers who evade taxes are under Income Tax department's radar

The income tax department does more than just review your tax return and financial statements. In actuality, they also peruse your social media posts. The income tax department may pick up on your social media posts as a possible sign of tax evasion.

The income tax department has written letters to 15 social media influencers who posted about their luxury vacations and shopping trips while paying no income tax or very little income tax. The income tax department asked these 15 social media influencers to identify their sources of income tax and the basis for their failure to pay income tax, as per CA Club of India's official website

According to reports, the income tax division is employing data analytics to review social media influencers' accounts to look for any discrepancies between their social status and the ITRs that have been filed. To determine if social media influencers are underreporting their income or not, they use data analytics.

The 15 social media celebrities who received income tax warnings are from a variety of industries, including Bollywood, fashion, lifestyle, travel, etc. The income tax division has requested information from the influencers regarding their earnings from sponsored material, brand endorsements, etc. in a notice.

The income tax division has also requested information from these 15 taxpayers regarding money spent on travel, clothing and other items, lodging, etc.

This action by the income tax department against media influencers is intended to increase income tax compliance among high earners who hide their ITR while evading taxes.