Self-publishing on Amazon Kdp

ITR 2010 views 8 replies

madhi

author

27 Points Joined December 2020

I have self-published a book on Amazon Kdp. Though they pay me royalties on sales, they don't give me Form 10CCD to claim deduction under sec 80QQB. Also, they withhold tax at 15% for the sales in the US market and issue form 1042s. But, they credit my account in Indian rupees every month for the sales, if any. I am an Indian resident ROR and no other foreign income. My TI is below 2.5 lakhs. My queries are:

As tax is withheld in USA, does this count as foreign source of income even if i don't get paid in dollars?
Should i disclose this income under section FSI in ITR? I don't have a passport or TIN, which is asked there. I am not claiming any tax credit as my TI is below the limit.
Is self-publishing a business or profession? what is the business code to be chosen in ITR?

Thanks for the reply.

Replies (8)

ayusmita

Tax consultant

5895 Points Joined September 2020

Gross income earned from your royalty will be taxable in india
as you already filled form W-8 BEN as per USA taxation reducing the withholding tax to 15% from 30%
you now need to file incometax return as per indian rule
file ITR 3 or 4 and file form 67 to claim the credit mandatory in india
(self employed or says sole proprietorship) if you take as business and as per proffession then other proffession depends upon you

madhi

author

27 Points Joined December 2020

Thanks for the reply. Should i compulsorily submit Form 67 even if i don't want to claim tax credit?

for business, is the business code 9028 correct for sale of books in amazon?

ayusmita

Tax consultant

5895 Points Joined September 2020

Why you don't want to claim credit ?

Those are tds as per Indian laws

madhi

author

27 Points Joined December 2020

Kindly advise me if my choice of business code 9028 for the sale of own books in amazon (self-publishing) is correct or not. Thank you.

ayusmita

Tax consultant

5895 Points Joined September 2020

No it's incorrect as you are not involved in any retail or others types of retail business

Show it as proffession and file ITR

Diana

Teacher

24 Points Joined September 2021

Hello, you gave your PAN number on Amazon KDP during the registration process right? Is it safe? Can you tell me what they use it for? Do they need it to just send the KDP income details to our tax department? Or do they send the details of the US tax that they deduct at source?

Thank you.

madhi

author

27 Points Joined December 2020

Amazon KDP is a reputed organization and giving PAN during registration process should be safe. Amazon KDP is an American company and any royalty income generated in the United States is subject to their income tax laws. If you fill out the form, they ask for, completely, income generated in the US (not sales in amazon.in) is withheld to the tune of 15%. For that Indian PAN is required for Indian residents.