The starting point: Fees earned by a model for photoshoots, ramp walks, commercials, and brand endorsements are taxable as income from profession. Taxable income is the gross fees earned across all assignments, less expenses incurred in carrying on the modelling profession, agency commissions, portfolio/composite card costs, grooming and styling expenses directly related to assignments, travel to shoot locations, and so on.
Agency-Routed Payments and Commission
Many modelling assignments are booked through an agency, which negotiates the fee with the client/brand, and then pays the model their share after deducting the agency's commission. A practical question is whether the model should report the gross fee (the amount the client paid the agency for the model's services) with the agency commission claimed as a deduction, or simply the net amount actually received from the agency. Generally, reporting the gross fee as income with the agency commission as a deductible expense gives a complete and accurate picture, and may also align with how TDS is reflected (if the agency or client deducts TDS on the gross fee before the agency's commission is netted out, the model's Form 26AS/AIS may show the gross figure, making it important to reconcile income reported with TDS credits claimed).
Worked Example
A model with agency-booked and direct assignmentsMs Banerjee works through a modelling agency for most of her assignments and occasionally takes direct bookings from brands she has built relationships with. Over the year, her agency-booked assignments generate gross fees (before agency commission) of Rs 18,00,000, on which the agency retains a 20% commission of Rs 3,60,000, paying her Rs 14,40,000. Separately, she earns Rs 4,00,000 directly from brands without agency involvement. Her total gross professional income is Rs 22,00,000 (Rs 18,00,000 + Rs 4,00,000), against which she claims the Rs 3,60,000 agency commission as a deductible expense, along with other costs like portfolio shoots and styling (say Rs 1,40,000), arriving at net taxable professional income of Rs 17,00,000.
International Assignments
Models who work on international assignments, shoots or shows abroad, bookings through international agencies, may receive a portion of their income in foreign currency. For an Indian tax resident, this foreign income is taxable in India as part of global income, with the usual considerations around currency conversion, potential foreign tax withheld on overseas earnings, and the DTAA/foreign tax credit mechanism to avoid double taxation where relevant.
TDS on Modelling Fees
Payments to models for professional services would typically have TDS deducted under the provisions applicable to professional fees, where the payer (brand, production house, or agency) is required to deduct tax at source above the applicable threshold. Models should reconcile the TDS reflected in their Form 26AS/AIS against the gross fees they report as income, ensuring the TDS credit is correctly claimed against their final tax liability.
Presumptive Taxation
Depending on how modelling is characterised among the specified professions and the applicable turnover threshold, models may be eligible to consider the presumptive taxation scheme under Section 44ADA, which could simplify compliance by presuming income at a specified percentage of gross receipts, subject to the eligibility conditions.
Frequently Asked Questions
I am a college student doing occasional modelling assignments alongside my studies. Do I need to file a tax return for this income? ▼
Whether you need to file a return depends on your total income from all sources (including this modelling income) relative to the basic exemption limit and other return-filing thresholds. If your total income, including modelling fees, crosses the relevant threshold, a return would generally be required, with the modelling income reported under business/profession even if it is a relatively occasional or part-time activity.
Can I deduct the cost of gym memberships, skincare, or grooming as a professional expense? ▼
Expenses that are directly and substantially connected to maintaining the professional standards required for modelling assignments could potentially be considered in computing professional income, but this is an area where the line between a genuine professional expense and a personal expense can be debated, and the connection to specific income-generating activity matters. Costs more clearly tied to specific assignments (styling for a particular shoot, for instance) would generally have a stronger case than general personal grooming or fitness expenses.
If my agency pays me after deducting both their commission and TDS, how do I reconcile this with what's shown in Form 26AS? ▼
Form 26AS/AIS would typically reflect the TDS deducted on the gross amount before the agency's commission (assuming TDS was deducted on the gross fee paid by the client to the agency, with the model identified as the payee for tax purposes). Reporting your gross professional income (matching the TDS-relevant gross figure) and separately claiming the agency commission as a deductible expense, while claiming the TDS shown in your Form 26AS as a credit, generally gives a consistent and reconcilable picture.