Print on demand, royalty and income tax

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This discussion clarifies the tax implications for artists selling designs on US print-on-demand platforms. It addresses whether the profits earned from selling artwork, where the platform handles manufacturing and delivery, are considered royalties. The conversation also guides on the appropriate Income Tax Return (ITR) to file, considering payouts in dollars converted to Indian Rupees, and categorises this income as business income rather than income from other sources, even if art isn't your primary profession.

PRARTHANA PATIL

PRARTHANA PATIL (Querist)
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06 August 2021 I am planning to upload my artwork on US based print on demand e-commerce platform.The customers will place the order with that platform and then that ecommerce platform will manufacture and deliver the product to the customer. I'm just uploading my artwork as a designer. I am not involved in any other process such as receiving orders, manufacturing and delivering the products to customers etc. The selling price for product will be set by designer (in this case, me) and the ecommerce platform will deduct the base cost and give the artist remaining 100% of the profit (i.e. selling price - base cost).
For example, 1.the base price for a t-shirt is $10 and designer choose to sell it for $24, then designer would keep $14 in profit.

2.the base price for a t-shirt is $10 and designer choose to sell it for $19, then designer would keep $09 in profit.

The designer will receive the payment through PayPal.

My questions are ,

1. Does this profit come under ROYALTY?
2. Which ITR needs to be filed?
Payouts are in dollars but payments deposited in bank a/c are in Indian rupees.
3. I'm not artist/ designer by profession, then under which category above income will fall? Business income or income from other sources.