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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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
You are violating various provisions of FEMA and liable for penalty up to thrice the sum involved in transactions. It is not the used banned APP it is contravention of provisions of FEMA.
No 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.
Is earning money from TikTok using a VPN considered illegal in India?
Accessing TikTok through a VPN after its ban is a legal gray area. While VPN use itself is legal, bypassing government restrictions to access a banned app could potentially be seen as a violation. Prosecution of individuals is rare, but some legal risk exists.
Does the use of a KYC-verified PayPal account to receive the income make it legally valid?
Receiving earnings via a fully KYC-verified PayPal account is legal, provided you disclose and pay taxes on this income. The transaction method does not by itself make your earnings illegal, as long as tax laws are followed.
If I declare this income and pay taxes, can I still face legal issues for using a banned app?
Paying taxes makes your income tax-compliant. However, this does not protect you from potential risks of circumventing a government ban on TikTok. Enforcement has been rare, but legal ambiguity remains.
Are there any legal risks or consequences to be aware of?
There is some risk in using a VPN to access banned apps—especially if enforcement increases. Circumventing a ban could theoretically lead to penalties or fines, but is currently uncommon for individual users. Declaring and paying taxes on your earnings avoids any tax-related issues.
If you want to be fully compliant and need help filing your ITR for this income, we can assist you with your tax filing.
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.
