Tax on Forex Affiliate Income in India 2026 — Complete Guide for Indian Affiliates
Forex affiliate commissions are taxable in India. Understanding how to correctly declare and pay tax on your affiliate income is essential for compliance.
How Affiliate Income is Classified in India
Forex affiliate commissions received from overseas brokers are classified as: Income from Business/Profession (if it is your primary activity) or Other Income (if it is a side activity). Both are taxable at applicable slab rates.
GST on Affiliate Income
Affiliate income from overseas (export of service) is typically Zero-Rated under GST. You may need to register for GST if annual income exceeds ₹20 lakh. File LUT (Letter of Undertaking) for zero-rated export of services. Consult a GST practitioner for specific advice.
Income Tax on Affiliate Commissions
- Income below ₹3 lakh: Nil
- ₹3-7 lakh: 5%
- ₹7-10 lakh: 10%
- ₹10-15 lakh: 15-20%
- Above ₹15 lakh: 30% + cess
Record Keeping for Tax Compliance
- Download commission statements from all 4 broker dashboards monthly
- Keep records of all Neteller/bank transfers to Indian account
- Convert USD commissions to INR at RBI reference rate on receipt date
- Maintain records for minimum 6 years
Hiring a CA for Affiliate Business
If annual affiliate income exceeds ₹5 lakh, engaging a CA who understands digital business income is strongly recommended. Look for a CA with experience in: digital marketing income, foreign currency income, GST for service exports.