Money admin for musicians

This module explains the basics so you can stay organised and ask better questions. It isn't tax or financial advice. Tax rules change and depend on your situation, so speak to a chartered accountant (CA).

Why it matters

In a 2025 survey of 80 Indian independent musicians, the median artist earned about ₹96,000 a year from music and spent about ₹1.1 lakh on it. When margins are that thin, missed invoices, unclaimed royalties and unrecorded expenses make a real difference.

1. Separate your money

Open a separate bank account for music income and expenses. It makes it far easier to see what you're earning, to claim expenses, and to hand your CA clean records.

2. Invoice every paid job

Send an invoice for every show, session, commission or brand job. Include:

• Your name, address, contact and PAN.
• The client's name and address.
• An invoice number (sequential) and the date.
• A clear description of the work: event, date, deliverables.
• The amount, and GST if you're registered.
• Payment terms, such as "due within 15 days".
• Your bank details.

Some clients deduct tax at source (TDS) before paying you. Keep a record of it, because it can count towards your tax for the year. Your CA will know how to claim it.

3. Track every royalty source in one place

Royalties arrive from different places, on different schedules:

Keep one spreadsheet with a row for every statement: date received, source, period covered, amount, and whether it's been paid into your account. Review it monthly. If a source goes quiet, or a number looks wrong, query it.

4. Keep your expenses

Keep receipts for what you spend on music: recording and mixing, distribution fees, instruments and gear, software, travel to shows, promotion. Your CA can tell you which can be set against your income.

5. International income

A large share of streaming income can come from abroad. More than 40% of Indian artists' Spotify royalties in 2025 came from listeners outside India. That usually reaches you through your distributor.

• Tax forms: distributors often ask for tax information, such as a W-8BEN form for royalties from the US, so the right amount of tax is withheld. Fill them in carefully.
• Payment methods: check how your distributor pays you (bank transfer, PayPal or others) and what fees and exchange rates apply.
• Records: keep statements showing the foreign income and any tax withheld. Your CA may be able to account for it.

6. GST basics

GST applies to many services, but not everyone has to register:

• The threshold: service providers generally need to register once their total turnover crosses ₹20 lakh a year, or ₹10 lakh in some special-category states.
• An exemption for some performances: performances in folk or classical art forms are exempt from GST where the fee for the performance is up to ₹1.5 lakh. This doesn't apply to work as a brand ambassador.
• Everything else: brand work, sync licences and other services may be treated differently.

Ask a CA to confirm what applies to your income before you charge or skip GST.

7. Questions to ask your CA

1. Do I need to register for GST, and when?
2. Which of my music expenses can I claim?
3. How should I account for TDS deducted by clients?
4. How do I report foreign royalty income, and any tax withheld abroad?
5. Should I invoice as an individual, or set up a firm or company as I grow?

Your monthly money routine

1. Send invoices for last month's work.
2. Log every royalty statement in your sheet.
3. File receipts for the month's expenses.
4. Chase anything overdue.
5. Move a fixed share of income into savings for tax.

Thirty minutes a month keeps your music business healthy, and makes the conversation with your CA quick and cheap.