TDS and GST on music royalties in India: a plain guide for artists (2026)
By the SUF Digitals team · Updated
Royalties are taxable income, but most independent artists do not have to deal with much paperwork. TDS on royalties is deducted only by payers the law requires to deduct it, at 10% (20% without a PAN) once one payer's royalties cross Rs 50,000 in a financial year. GST registration is usually not needed below Rs 20 lakh of turnover, and where GST on a copyright licence is under reverse charge the music company pays it. Here is how each piece works, in plain words.
First, what changed in 2026
The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026. The TDS rules that used to sit in separate sections (royalty TDS was section 194J) are now rows of one table in section 393 of the new Act. The rate for royalties and the Rs 50,000 limit did not change, but anything that still cites 194J as the current section is out of date.
This guide is general information for independent artists, not tax advice. Your own position depends on your other income, so check it with a chartered accountant before you file.
TDS on royalties: who deducts, how much, and when
| Question | Short answer |
|---|---|
| Who deducts TDS? | Every payer that is not an individual or HUF, such as a company, LLP, firm or trust. An individual or HUF payer has to deduct only if its business turnover was above Rs 1 crore, or its professional receipts above Rs 50 lakh, in the previous financial year. Confirm your own payers with a CA. |
| At what rate? | 10% of the royalty. 20% if you have not given a valid PAN, and a PAN that is inoperative because it is not linked with Aadhaar counts as no PAN. |
| Above what amount? | Once the royalties one payer pays you cross Rs 50,000 in a financial year (April to March). The limit was Rs 30,000 until FY 2024-25. |
| When is it deducted? | When the royalty is credited to your account in the payer's books or when it is paid to you, whichever is earlier. |
| Where do I see it? | On your payout record, then against your PAN in Form 26AS and your Annual Information Statement once the payer files its quarterly TDS return. |
| Do I get it back? | TDS is tax paid in advance. You claim it in your income tax return; if your total tax is lower, the difference is refunded. |
How SUF handles TDS
SUF deducts TDS only where the law requires it. When tax is withheld, it shows on your Money page as tax paid on your behalf, and you get a deduction statement for it. The official credit then appears against your PAN after the quarterly return is filed.
Your PAN, and your name and date of birth as on the PAN card, are verified as part of your payout details before your first withdrawal, so a valid PAN is on record whenever tax is withheld.
GST: do you need to register?
Usually not. GST registration for services becomes compulsory only when your turnover crosses Rs 20 lakh in a financial year (Rs 10 lakh in a few north-eastern states). Most independent artists' royalties are well below that.
There is also a reverse charge rule written for creators. When an author, music composer, photographer or artist licenses the copyright in an original literary, dramatic, musical or artistic work to a publisher, music company or producer, the GST on that licence is paid by the music company, not the creator (Notification 13/2017-Central Tax (Rate), the reverse charge list). And a person whose supplies are all under reverse charge does not have to register at all (Notification 5/2017-Central Tax).
Two cautions. The reverse charge entry is written for the song (the words and music), and royalties for a sound recording can be treated differently. And if you also earn from shows, brand deals, session work or production, those count towards the Rs 20 lakh limit. Ask a CA how your mix of income is treated.
How SUF handles GST
Plan payments come with a GST invoice at 18%, with your GSTIN on it if you are registered. On royalties, where reverse charge applies to an artist's payout, SUF pays the GST itself and issues the self-invoice and payment voucher the rules require, so an unregistered artist does not need to raise a GST invoice. Whether reverse charge applies is recorded for each artist, not guessed per payment.
If your distributor is outside India
Distributors based in the United States withhold US tax on US royalties: 30% by default, or the lower India-US treaty rate if you file a W-8BEN form claiming the treaty. Whatever is withheld abroad, report the full royalty in your Indian return and claim credit for the foreign tax by filing the foreign tax credit form before your return (Form 67 under the old Act; check the current form with your CA).
Foreign payouts also bring currency conversion and bank charges. A distributor that pays in rupees, to an Indian bank account or UPI, avoids both. See DistroKid alternatives for Indian artists.
A simple record-keeping routine
- Download your royalty statements from the portal every quarter (CSV or PDF).
- Keep each payout's transfer reference and any deduction statement.
- Check Form 26AS or your AIS before filing, and match the TDS to your payouts.
- Keep the GST invoices for your plan payments if you claim them as an expense.
- Declare royalties as income in your return, even when no TDS was deducted.
Common questions
Is TDS deducted on Spotify royalties?
Spotify pays your distributor, not you. TDS applies, if at all, when your distributor pays you, and only if the distributor is required to deduct it and your royalties from it cross Rs 50,000 in the financial year.
What is the TDS rate on royalties in 2026?
10%, or 20% without a valid PAN, above Rs 50,000 from one payer in a financial year. The rule now sits in section 393 of the Income-tax Act, 2025, which replaced the old section 194J from 1 April 2026.
Do I need GST registration to receive royalties?
Usually not below Rs 20 lakh of turnover a year, and where reverse charge applies the music company pays the GST. Ask a CA if you also earn from shows or brand work.
Can I get paid without a PAN?
Not for payouts in India: SUF verifies a PAN in the payee's own name before the first withdrawal. Under the law, where TDS applies and no valid PAN is given, it is deducted at 20% instead of 10%, and an inoperative PAN, for example one not linked with Aadhaar, counts as no PAN.
Can royalties be paid into my parent's or friend's account?
No. The bank account or UPI must be in the same name as the PAN on the account. This protects your money and keeps the tax record correct.
Is this tax advice?
No. It is general information for independent artists. Confirm your own case with a chartered accountant.
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