Income Tax on Amazon Associates Earning (Amazon Affiliate Earnings India) in 2021

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Income Tax on Amazon Associates Earning /amazon affiliate earnings in 2021

Hello Every one, Welcome to another interesting knowledgeable article about Amazon Associates and its tax information . For better understanding you must read the article “Income Tax on Amazon Associates Earning in 2021″ till the end.

In the 21st century, earning money is not a difficult task for those who have knowledge about technology. There are many options for earning money online. Some people use google AdSense whereas others use affiliate marketing.

Nowadays, affiliated marketing plays a very crucial role in the context of earning money. Affiliate marketing means selling the product of a company by using any social media, blogger, website, app or any medium etc. after successful selling of that particular product you will get commission at a prescribed rate.

There are many companies who are using affiliate marketing for the promotion and growth of the business. Amazon affiliated program, flipkart affiliateClickBank, Shopify, Rakuten, eBay Partner Network, cj affiliate program, etc. Among all amazon associates is different. Amazon is the world’s biggest e-commerce site who generates a huge amount of revenue in billions of rupees.


Income Tax on Amazon Affiliate Earnings India

Amazon associates meaning

It is an affiliated marketing program of amazon popularly known as amazon associates. It is very easy to monetize your website, app, blogger etc. it is totally free for those who want to join and become an amazon associates. You have to advertise the product of Amazon Company through your website, app, blogger and other media etc.


How do I become an Amazon affiliate associate?

Steps to become amazon associates:-

  • Create your own website or blogger or an app for amazon affiliate marketing

  1. You must have an active website, app, blog, YouTube channel or any other social media page to become an amazon associates.


  • Log in to amazon associates-

  1. Go to amazon affiliate sites
  2. Create your amazon associates account
  3. Go to amazon associates home page and click join for free
  4. You have an option to log in to amazon account or create a new one.

  • Create your profile –

  1. Sign in to amazon account
  2. Enter your account information
  3. Enter your website URL
  4. Enter your preferred amazon affiliate store ID
  5. Describe about the traffic of your site
  6. Enter mobile number
  7. Select your payment methods and provide tax information


  • Create amazon affiliate links-

  1. You have two options either affiliate through affiliate link or use html code
  2. Go to your own app, website, and blogger, and then paste that link or code.

Congratulations… you have successfully done.

Amazon affiliate commission Rate 



Apparel  & Accessories/ Watches / Shoes / Luggage & Bags –


Toys & Baby Products / Kitchen Appliances / Kitchen & Housewares / Home –

9 %

Sports, Fitness & Outdoors / DIY & Tools –


Books / Office & Stationery /Grocery & Gourmet / Pantry  – 

8 %

Personal Care Appliances  / Health, Beauty & Personal care –


Jewellery / Industrial & Scientific Products , Car, Motorbike, / Musical Instruments – 


Movies / Music / Software / Large Appliances / Video Games –


Computers / Consumer Electronics & Accessories/ Televisions / Mobile Accessories –


Bicycles & Heavy Gym Equipment / Mobile Phones / Tyres & Rims –


Data Storage Devices –


Gold & Silver Coins –


Furniture / E-books  & Kindle devices & Others –


You should go to amazon affiliate store or Online Amazon Store for more products.

Income Tax on Amazon Associates Earning

Income tax is a direct tax which is imposed by the government of the nation over the income of the general people, persons or entity etc. The amazon affiliate program India comes under the heads of income from business profession. This income from amazon affiliate or amazon affiliate earnings is taxable as normal business income. So you will get deduction of expenses related to business while computing the net taxable income.  According section 14 of income tax act 1961, there are 5 heads of income as under

  1. Income from salary
  2.  Income from house property
  3. Income from business and profession
  4. Income from capital gain
  5. Income from others sources


Ex:     Mr. A’s total amazon affiliate earnings India Rs. 20, 00,000

           Total cash expenses (advertising and husting expenses) Rs. 4, 00,000

            Non cash expenses (office maintenance) Rs. 2, 00,000


Computation of profit & gain from business and profession

Gross receipt                                         20, 00,000

Less     cash expenses                              4, 00,000

Less     Non Cash expenses                      2, 00,000


Income from business & profession  Rs.  14, 00,000

Less     deduction under section 80c  Rs.   1, 50,000


                               Net total income Rs.     12, 50,000



If you are an Indian resident than the (American Register Company) amazon affiliate earnings is not taxable in USA (united state of America)

For income tax purposes, you must have to furnish W-8BEN form, if you furnish that form, then US register Amazon Company would not withhold any taxes from you otherwise amazon may withhold 30% as tax from your earning.

from the above discussion there are many affiliate programs like Amazon affiliated program , flipkart affiliate, ClickBank, Shopify, Rakuten, eBay Partner Network, CJ affiliate, etc. But if an income receive from foreign company like US nation then you have to furnish W-8BEN form for tax benefits.

Also Read:
Manturanjan Sa
Founder of Income TaxPe & Shayari Me Kahani. Professionally a Lecturer, by passion a Writer, Dancer, lyricist. fitness lover. Also a social worker co-founder of Kartabya Foundation & Digital Entrepreneur.


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