I recently started earning from a monetized TikTok account (it's been around 3 months). Even though TikTok is banned in India, I access the platform using a VPN. The money I earn is sent to my fully KYC-verified PayPal account, which then converts the amount to INR and transfers it to my Indian bank account. I haven’t paid any taxes yet because I only started earning recently and my income hasn't reached the tax filing deadline. However, I intend to report and pay taxes when required. My questions are: 1. Is earning money from TikTok using a VPN considered illegal in India? 2. Does the use of a KYC-verified PayPal account to receive the income make it legally valid? 3. If I plan to declare this income and pay taxes properly, can I still face legal issues for using a banned app? 4. Are there any legal risks or consequences I should be aware of in this case? I want to ensure I'm not violating any Indian law unintentionally and would really appreciate your advice.
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1) There's no law prohibiting the use of VPNs.
2) TikTok is banned in India: The Indian government banned TikTok and 58 other Chinese apps in 2020, citing security and privacy concerns.
3) Bypassing the ban with a VPN: This is where the legal ambiguity arises. While VPNs can mask your IP address and allow access to blocked content, it could be seen as circumventing the ban.
4) you can face legal issues in future as tik tok is banned in India
It’s legal
1. VPNs are legal in India. However the tik tok is banned in India. Hence using a VPN to access TikTok in India allows users to bypass the ban, which could be seen as a violation.
2. While not explicitly illegal, circumventing a ban could lead to legal repercussions, including potential fines or other penalties.
3. The Internal Revenue Service (IRS) requires TikTok to obtain your tax information before making any payments to you. If you don't provide your TIN, TikTok may be required to withhold taxes, and you may be ineligible to participate in any current or future programs you have joined or may join.
4. TikTok, along with other Chinese apps, was banned in India in 2020, though not explicitly illegal, circumventing a ban could lead to legal repercussions, including potential fines or other penalties.
Earning from TikTok using a VPN is a legal gray area; accessing a banned app can carry some risk, though prosecution of individuals is rare in India.
Receiving income through a fully KYC-verified PayPal account is legal and a valid way to receive foreign earnings.
Declaring and paying taxes on your income ensures tax compliance, but it does not completely eliminate legal risks related to using a banned app.
Using a banned app via VPN may pose some legal risks, especially if enforcement tightens, but financial transactions that are declared and taxed are not illegal.
If you need help with filing your ITR for this income, we can assist you.
Tiktok was banned in India citing security concerns. VPN usage isnt illegal in India. So using TikTok via VPN may constitute as a gray area, but it should work unless you receive some notice from DoT.
Receiving money from PayPal isnt as much of an issue as receiving the same through TikTok may constitute.
Paying taxes is beneficial for your financial upkeep. However, if the source of income is found to be illegal then the taxes wont make the source legal.
Using TikTok in India through a VPN technically violates the spirit of the government’s ban under Section 69A of the IT Act, though it’s not yet a punishable criminal offense unless a specific law is broken (like spreading harmful content or compromising national security). Simply accessing it for passive use or earning doesn't currently attract penal provisions, but it is a legal grey area. Receiving payments via a KYC-compliant PayPal account is valid for tax purposes, and if you declare this income and pay taxes honestly, you reduce legal risk significantly. However, using a banned app, even with clean earnings, could expose you to regulatory scrutiny or future action if the government tightens enforcement. You should consult a lawyer if your income scales up, and consider shifting to non-banned platforms to avoid future risk.
