Seller Tips26 June 2026 2 min read 16 views

Income Tax for Meesho Sellers in India — Slabs, ITR & Deductions

How income tax works for Meesho sellers in India: which ITR to file, tax slabs, presumptive scheme 44AD, deductions and how TDS is adjusted.

TrackEcom Team

TrackEcom

Income Tax for Meesho Sellers in India — Slabs, ITR & Deductions

Income Tax for Meesho Sellers in India — Slabs, ITR & Deductions

Meesho selling income is taxed as business income, and you file ITR-3 (or ITR-4 under the presumptive scheme). You pay tax on your profit, not your sales, and the 0.1% TDS Meesho already deducted is adjusted against your final liability — often resulting in a refund for small sellers.

Key Takeaways

  • Meesho income = business income, taxed on profit.
  • File ITR-3 (regular books) or ITR-4 (presumptive 44AD).
  • Section 44AD lets you declare 6–8% of turnover as profit, no detailed books.
  • Meesho's Section 194-O TDS is credited against your tax in the ITR.
  • Deduct genuine expenses: stock, ads, packaging, courier, fees.

Which ITR Should a Meesho Seller File?

SituationITR form
Maintaining full booksITR-3
Presumptive scheme (turnover ≤ ₹2–3 cr)ITR-4 (Sugam)

Presumptive Taxation (Section 44AD)

If your turnover is within the limit, 44AD lets you declare a flat 6% of digital turnover (or 8% of cash) as profit — no need to maintain detailed accounts or get audited. Simple and popular with small Meesho sellers.

Expenses You Can Deduct

  • Cost of goods sold (stock)
  • Meesho commission & shipping fees
  • Packaging material
  • Ads & promotion
  • Tools, internet, phone (business portion)

Knowing your real deductible profit starts with accurate per-order P&L — see how a Meesho profit dashboard separates fees, returns and ad spend so your ITR numbers are defensible. Don't forget to claim the TDS Meesho already deducted.

FAQs

How much income tax do Meesho sellers pay?

You pay tax on profit per the slab rates (or 44AD presumptive). Many small sellers fall below the basic exemption and pay little or nothing — and reclaim TDS as a refund.

Is the Meesho TDS refundable?

Yes. The 0.1% Section 194-O TDS is adjusted against your total tax; if it exceeds your liability, the balance is refunded after you file your ITR.

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