Taxes on Co-host payout in India

[Deep730]

Hello Everyone!

I am a listing owner on Airbnb and have arranged to give 50% of the total payout to my co-host. However, Airbnb says that I will need to pay taxes on the entire booking amount. For instance, if I receive a booking of 1,000 Rupees and my co-host gets 500 Rupees (50% of the payout), I will still need to file income tax returns on the full 1,000 Rupees.  My co-host will also have to file income tax returns on his 500 Rupees share. 

Is this correct? If so, we both would be filing income tax returns on a combined total of 1,500 Rupees, even though the total payout is only 1,000 Rupees. I'm confused about this, so please help

[Bhumika]

Hi @Deep730 , Have you managed to find more information about Taxes on Co-host payouts in India? There's an Airbnb article that provides a brief overview of 👉 Co-Host taxes and payouts👈. 

There's also another article that talks about 👉 Why are taxes being withheld from my payouts for listings in India? 👈 

Have you also reached out to the Customer Support team about it?

I'm also reaching out to a few Hosts from India if they can kindly help us with your question related to taxes 👀 :  @Shiv211 @Vishnu40 @Sangeeta8 @Snehal1 .

[Snehal1]

Hello, You are based in Canada and CoHost for bnb in India ?

[Bhumika]

Hi @Snehal1 , thanks for your kind question! Haha, I wanted to clarify that I am a Community Manager for this Airbnb forum (and not a Co-host. Though I believe it would be a exciting adventure to pursue 😆 )

On a side note, I noticed that you're from Vadodara. I am a Gujarati too and from Ahmedabad. I shifted to Toronto some time ago 😉 

[Snehal1]

Great Bhumika.  Kem Cho ?   Have you been to Statue of Unity?

[Bhumika]

Hu Maja ma! Tme kem cho? I've not visited the Statue of Unity yet @Snehal1 , however, I wish to when I visit back home (next time may be!)

[Snehal1]

Also Plan to stay at my bnb 

[Snehal1]

@Deep730 Is there a Way of Showing - Commission given from Personal income ?  I will like to know 

[Deep730]

@Snehal1 In my earning reports, it shows - Booking amount paid out to Host (me). Then let's say as per my routing of payouts, my cohost receives 50% of the total booking amount.

For Example :

Amount paid by Guest - 1000 bucks

I have received 500 bucks

My cohost received 500 bucks.

So will I be paying taxes for 1000 bucks or 500 ?

[Bhumika]

@Deep730 , Have you also tried reaching Airbnb Customer Support team about it? What did they say?

[Deep730]

I did actually, however not getting the cleared anwers that's why decided to check here 🙂

[Bhumika]

I see @Deep730 ! In our global community, while we wait for more Hosts to support with the question, it could probably be a good idea to also reach out to Hosts through Airbnb's Local Host Clubs , where you can get in touch with Hosts from Delhi. I found the local club near you here Delhi Airbnb Host Community.

Do keep us posted if you find more information there. It will help many Hosts here in our Community 😊

[Bhumika]

Hi @Deep730 , did you get more information in the Host Club I had shared above? Had you asked the question there?

[Snehal1]

TDS is Deducted on which amount?

[Kia272]

@Deep730 You should pay taxes on your profit only. Paying your co-host is a business expense to you, and would reduce your profit. 

Gross profit minus expenses (payout to co-host) = Net profit. That's what you should be paying taxes on. 

That's how it should work in almost any country.