If you have a full-time job and make an additional income from Amazon affiliate marketing, you might wonder: Which ITR form to use? How do I report this income? Don’t panic; most salaried individuals these days have a side job, and the Income Tax Department has well-defined guidelines for it.
Let’s discuss step by step.
Salary + Amazon Affiliate Income – Which ITR Form to Use?
Quick Tip:
If your affiliate income is minimal and you’re not interested in maintaining records, opt for ITR-4.
If your affiliate income is large and you wish to display actual profit after deducting expenses, use ITR-3.
Documents You’ll Need
Before submitting, collect these:
- Form 16 from your company.
- Form 26AS / AIS / TIS (download from income tax portal).
- Amazon affiliate payment statements.
- Bank statements.
- Investment proofs (LIC, PPF, ELSS, insurance) for tax saving.
- Bill of expenses (if you want to file ITR-3 and claim tax deductions).
Step-by-Step Process to File ITR
- Login to the Income Tax Portal.
- Choose the Assessment Year (e.g., AY 2024-25 for FY 2023-24).
- Select the right ITR form (ITR-3 or ITR-4).
- Complete your salary information (pre-filled from Form 16).
Type in affiliate income:
– In ITR-3 → type receipts and expenses
– In ITR-4 → type gross receipts; 50% will be considered as profit.
- Claim deductions (80C, 80D, etc.).
- Verify tax payable and pay any outstanding tax if required.
- File and authenticate using Aadhaar OTP, Netbanking, or DSC.
Things to Keep in Mind
- Verify your AIS/26AS as the IT department cross-verifies your income with these documents.
- Report all affiliate income under business income, not “other income.”
- File with ITR-4 for a quick and easy filing without maintaining accounts.
- File with ITR-3 to save taxes by deducting expenses such as ads, hosting, software, internet charges, or laptop depreciation.
- If your income is above ₹50 lakhs, complete the Assets & Liabilities schedule.
No. ITR-1 is for salary, one house property, and others such as FD interest. Affiliate income is business income.
ITR-4 is convenient if you don’t wish to maintain accounts. ITR-3 is preferable if you have big expenses that you wish to claim.
No, affiliate commissions are exempt from GST. Only if you offer full-fledged marketing services may GST be applicable.
Your returns appear in AIS/26AS and bank statements. The tax authority can issue a notice if you avoid reporting.
Final Thoughts
If you’re an employed professional earning from Amazon affiliate marketing, you don’t have to file your ITR that hard.
Select ITR-4 for a straightforward process under presumptive taxation.
Select ITR-3 if you wish to claim business expenses and reflect precise profits.
Filing within a timely manner keeps you in compliance, saves you penalties, and makes your financial record clean for the future.