• 01 Aug, 2025

New Tax Rules for Creators: What the Hell is Code 16021 & Why You Should Care?

Let’s not pretend we love tax season.
Between chasing brand payments, editing reels, and figuring out if that barter deal even counts as “income”… who has time for ITR forms?

But here’s the thing:
The government just dropped a new rule, just for creators like you.

Yup, we’re official now.
Code 16021 is here, and it changes how you file taxes if you’re earning from content.

Let’s break it down. 

First things first: What is Code 16021?

If you’ve ever earned from:

• Instagram brand collabs
  
  

• YouTube AdSense
  
  

• UGC gigs
  
  

• Podcast sponsorships
  
  

• Or even a random ₹5,000 UPI transfer from a brand…
  
  

Then welcome to the world of influencer income, and this code is made for you.

16021 = Social Media Influencer
This is the new profession code you now have to use when you file your ITR (Income Tax Return), specifically ITR-3.

Wait, why is this a big deal?

The government’s saying:
“You’re not random anymore. You’re legit. You have your own code.”

This also means:
Your earnings are on their radar. So let’s do it right.

Do I need to keep records now?

Yes, you do.
If:

• Your income is more than ₹1.2 lakhs in a year
  
  OR
  
  

• Your total earnings from brand collabs cross ₹10 lakhs in a year
  
  

Then you need to:

• Maintain books of accounts
  
  

• Track your payments
  
  

• Keep proofs of brand deals, expenses, etc.
  
  

That free Canva Pro plan you paid for? Count it.
The mic you bought for your YouTube setup? Count it.
Every rupee in and out, track it.

(FYI: These limits are double if you’re filing as an individual or HUF.)

And if I’m earning big?

If your creator income is over ₹50 lakhs in one year, you need to get a Tax Audit done by a Chartered Accountant.

This is serious stuff.
No, not influencer-serious. Income Tax–serious.

What if I just ignore all this?

Here’s the harsh truth:
If a brand paid you ₹20K and filed their taxes saying “we paid this creator,” but you didn’t report it… guess what?

It’s already in the system.
You may not be looking at the IT department, but they’re looking at you.

So what should I do now?

Here’s your creator cheat sheet:

Real Talk Before You Go

This update isn’t just about tax.
It’s about recognition.
The creator economy is real, and the government just acknowledged that.

But with that comes responsibility.
You’re not “just making reels.”
You’re a business. With clients (aka brands). With revenue. With rules.

So let’s stop winging it.
Start acting like the CEO of your content.
Get a CA, stay compliant, and build long-term.

Because when your career blows up (and it will), you’ll be glad you didn’t mess up your taxes in the DMs.