In India, passive income has gained immense popularity as people increasingly seek ways to generate additional earnings and achieve financial freedom without being actively involved. Passive income is a popular concept as it requires minimal effort once the income stream has been set up. For instance, one of the easiest passive income ideas in 2024 is playing skill-based online games for real money. You can earn up to ₹30 Cr daily winnings by playing real money games online on trusted gaming platforms such as MPL by putting your gaming skills to the test.
This article explores various ways of making passive income in India that can help you create a consistent stream of assured income while pursuing your primary occupations or other interests. By diversifying income sources and leveraging different strategies, you can easily build wealth and generate passive income for yourself.
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What is Passive Income?
Passive income is a form of earnings or side income that requires little or no active involvement once the initial setup or effort is done. Unlike active income, which is directly tied to the number of hours worked or services provided, passive income continues to generate revenue without continuous, direct effort. It allows individuals to earn money on a recurring basis, even when they are not actively working or trading their time for income.
Examples of types of passive income include online real money earning games, rental income from properties, dividends from investments, interest from savings accounts or bonds, royalties from creative works, and profits from online businesses or e-commerce ventures. Passive income can provide financial stability, freedom, and the potential to build wealth over time, making it an attractive pursuit for many individuals.
Passive Income Ideas in 2024 – Top 20 Passive Income Sources in India
2) Affiliate Marketing
3) Social Media Influencer
4) Blogging and YouTube
5) Sell Photography and Stock Photos
6) Create and Sell Digital Products
7) Rental Properties
8) Storage Rentals
9) Mutual Funds
10) Fixed Deposits
11) Financial Investments
12) Online Business
13) Peer to Peer Lending
14) High Dividend Stocks
15) Invest in Real Estate Investment Trust (REIT)
16) Online Teaching
17) Drop Shipping
18) Create Mobile App
19) Print–On–Demand Store
20) Buy and Sell Websites
Real Money Games – Best Passive Income Idea in 2024
Real-money games have gained popularity in India as a potential source of passive income. With the increasing penetration of smartphones and internet access, you can easily participate in real money online games such as Rummy, Poker, Teen Patti, Fantasy Sports, and more such skill-based games and win big. By leveraging your gaming skills, you can win real money prizes. However, it’s important to approach real money games responsibly and be aware of the associated risks.
One of India’s most trusted and biggest gaming platforms is MPL. Mobile Premier League (MPL) offers a wide range of free and real money games where you can win up to ₹30 Cr in daily cash winnings. Some of the most popular games on the app include Rummy, Poker, Win Patti Skill (a game like Teen Patti), Opinio, Ludo, and Call Break.
You can play your favorite games against real players with matching skills. While there are various free games that you can play for leisure and entertainment of the app, you can also participate in real money games to win cash prizes. For instance, you can play poker freeroll tournaments without any investment and still win real money.
You can even play simple prediction games such as Opinio for free and win up to 10 Cr daily. All you have to do is answer Yes or No to simple questions like who will win today’s match and earn money!
If you love playing Ludo and think you possess the skills to win most Ludo games, you must try your hand at the cash Ludo games on MPL to win real money. All in all, playing real money games on MPL guarantees entertainment and is a good passive income source in India.
Affiliate Marketing
Affiliate marketing is one of India’s best passive income ideas and has gained traction over the years. To earn passive income through affiliate marketing, you need to join affiliate programs and promote products or services of different brands through various channels, such as websites, blogs, or social media. You will earn a commission when someone makes a referral or sale using your unique affiliate link.
Therefore, you can start earning passive income through your affiliate links without much effort. However, setting up a steady passive income stream would require effective marketing strategies, audience targeting, and content creation to drive traffic and generate conversions.
Some of the popular affiliate marketing sites in India include:
- Amazon
- Flipkart
- MakeMyTrip
- HostGator
- Fiverr
- Rakuten Advertising
- ClickBank
- Big Rock
Social Media Influencer
Becoming a social media influencer has become a popular way to generate passive income in India. You can build a substantial number of followers on platforms like Instagram, YouTube, or TikTok, and can collaborate with brands to promote their products and services. Influencers generate a good amount of passive income through sponsored posts, brand partnerships, affiliate marketing, and content monetization. While most social media influencers take up their influencing job full-time, many still take it up as a side gig.
For instance, many food bloggers or fashion bloggers are individuals working full-time jobs with an active income. However, social media influencing requires consistent engagement, quality content creation, and audience engagement to maintain a loyal following and attract brand collaborations.
Blogging and YouTube
Blogging and YouTube are also the best passive income ideas in India. You can create engaging and informative content in niches like travel, fashion, food, or technology and attract a large audience.
Ad revenue, sponsored content, affiliate marketing, and selling digital products or merchandise are passive income streams on these platforms. However, building a successful blog or YouTube channel also requires time, dedication, consistent content creation, and audience engagement.
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Sell Photography and Stock Photos
If you are passionate about photography, you can consider selling your photos or stock photos online to earn money. Numerous platforms allow photographers to showcase and sell their photographs to a global audience. These include stock photography websites such as Shutterstock, print-on-demand services, or even creating your own photography website.
You can license your images and earn royalties as passive income whenever someone purchases or uses your photographs.
Create and Sell Digital Products
Creating and selling digital products, such as online courses, is another lucrative source to produce passive income in India. Digital products can include e-books, online courses, templates, graphics, or software.
You can use online platforms like Udemy, Coursera, and Teachable or create your own website to monetize your expertise by reaching a global audience. You can sell your digital products repeatedly without additional effort, providing a scalable and passive income stream.
Rental Properties
One of India’s best passive income streams commonly used by the older generation is owning and renting out properties. If you have the capital, you can invest in residential or commercial properties and earn monthly rental income while you continue earning your regular income.
However, earning rental income requires initial capital investment, property management, and dealing with tenants or property management services. A rental property or multiple rental properties can provide long-term passive income and potential appreciation in property value.
Storage Rentals
Storage rentals are another lucrative passive income idea. You can purchase or build storage units and rent them out to individuals or businesses that require storage space. With the increasing demand for storage solutions, particularly in urban areas, storage rentals can provide a consistent and passive income stream.
Proper management and maintenance will ensure the profitability of storage rentals, which will require your time apart from capital investment.
Mutual Funds
Mutual funds offer a passive money option for individuals in India. You can invest in mutual funds that pool money from multiple investors to invest in diversified portfolios and earn money in the form of regular dividends or capital gains.
If you find investing in mutual funds confusing, you can take the help of professional fund managers who handle the investment decisions on your behalf, making it a convenient and relatively low-risk investment option. However, it’s essential to choose mutual funds wisely based on one’s financial goals and risk tolerance.
Systematic Investment Plans (SIPs) are also a popular way to invest in mutual funds. Many mutual funds offer SIPs to investors so that they can invest small amounts periodically (monthly, quarterly, semi-annually, or annually) instead of lump sums.
Fixed Deposits & High-Yield Savings Account
Fixed deposits (FDs) are a popular investment avenue in India for passive income. You can deposit a lump sum amount with a bank for a fixed tenure and earn a fixed interest rate on your investments. FDs provide a stable and predictable income stream, making it a preferred choice for risk-averse investors. However, it’s important to consider factors such as inflation and tax implications when opting for fixed deposits. The interest paid by a fixed deposit in India is typically 8.05% per annum and varies slightly from bank to bank.
The other option to invest money and earn more passive income is through high-yield savings accounts. A high-yielding savings account is a form of savings account that pays higher returns than a standard savings account. While a traditional savings account offers a national average return of 0.33%, a high-yielding savings account offers interest rates of over 4%.
Financial Investments
Engaging in various financial investments, such as stocks, bonds, or commodities, is also considered passive income in India. You can earn regular dividend income just by investing in high-dividend stocks.
Similarly, bond investments offer fixed interest payments. However, to mitigate the risks associated with such investments, it’s crucial to conduct thorough research, monitor market trends, and diversify the investment portfolio.
Online Business
If you have some business ideas in mind, you may as well start an online business in India to generate passive income. You can choose from a range of online businesses such as e-commerce stores, dropshipping, affiliate marketing websites, online store, or software-as-a-service (SaaS) businesses.
The online nature of these businesses enables automation, scalability, and the potential to reach a global audience. However, it requires careful planning, market research, and continuous optimization to create a successful online business.
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Peer to Peer Lending
One of the unique passive income ideas in India on this list is peer-to-peer lending. You may or may not have heard about P2P lending platforms. Peer-to-peer lending platforms enable you to lend money to individuals or businesses in return for interest payments. As a lender, you can earn passive income by diversifying your investments across multiple borrowers.
P2P lending platforms provide the infrastructure to connect lenders and borrowers, reducing the administrative burden. However, it’s important to assess the creditworthiness of borrowers and understand the associated risks before you use this option for earning money. Some of the P2P lending platforms in India include Lendingkart, Rupee Circle, i2ifunding, Paisa Dukaan, and i-Lend.
High Dividend Stocks
If you are interested in the stock market and have good knowledge of it, this may be a good option to earn extra money. Investing in high-dividend stocks is a passive income idea in India used by many individuals. You will have to select stocks of companies that consistently distribute dividends to earn regular income in the form of dividends.
Companies typically make dividend payments quarterly or annually. However, it’s essential to conduct thorough research and consider factors like the company’s financial health, dividend history, and market conditions before investing in dividend-paying stocks.
ETFs or exchange-traded funds are also good passive revenue sources under the idea of the dividend-paying stock. Exchange-traded funds (ETF) are a type of index fund and exchange-traded products that are traded in the stock market on stock exchanges. This is a great option that goes alongside your active income.
Invest in Real Estate Investment Trusts (REIT)
Investing in REITs is another one of the best passive income ideas in India for those of you who don’t own a rental property but are interested in real estate investing. Real Estate Investment Trusts (REITs) offer individuals in India an opportunity to invest in real estate without directly owning properties.
REITs pool funds from multiple investors to invest in income-generating real estate properties. REITs distribute regular dividends, which can earn passive income. Investing in REITs provides exposure to the real estate market with the potential for capital appreciation and rental income.
Online Teaching
Online training or teaching is the best passive income source for individuals who have an interest in teaching. With the increasing demand for online education, you can leverage your expertise to earn more money in the form of passive income by teaching online. This passive income source doesn’t require an initial investment.
You can use platforms like Udemy and Coursera or create your own online courses to reach a global audience. Once created, online courses can generate extra cash through course sales, while live classes or webinars can provide additional revenue streams.
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Drop Shipping
Drop shipping is a type of e-commerce or retail business model where you can sell products without holding inventory. When a customer places an order, the product is shipped directly from the supplier to the customer. This eliminates the need for warehousing and fulfilment.
You can set up an online store and partner with reliable suppliers to earn passive income through product sales while focusing on marketing and customer acquisition.
To start your drop shipping business, you will first have to choose a niche and find a dropshipping supplier. You can then set up your online store to get the passive income flowing.
Create Mobile App
Developing and monetizing a mobile app can be a viable source of passive income in India. However, this idea would require an initial investment in creating a mobile app.
You will first have to identify a problem or need and create a useful app to generate revenue through app purchases, in-app advertising, or in-app purchases. Creating a successful mobile app requires a thorough understanding of the target audience, effective marketing strategies, and continuous app updates to ensure user engagement.
Print–On–Demand Store
Print-on-demand (POD) stores allow individuals to create and sell custom-designed merchandise without upfront inventory costs. You will have to partner with POD platforms to create a wide range of products like t-shirts, mugs, or phone cases featuring on-demand designs from customers.
When a customer places an order, the product is printed and shipped directly from the POD provider. This allows individuals to earn passive income through product sales without the hassle of inventory management.
Buy and Sell Websites
Many individuals earn more money by buying and selling websites. This option can be a profitable passive income strategy in India for you. You can identify undervalued websites, improve their content, design, or market strategies to increase their value and sell them at a higher price.
Online marketplaces facilitate the buying and selling process, and you can earn a profit from the sale of websites you have acquired and developed. However, this passive income stream requires thorough due diligence and an understanding of website valuation to make successful transactions.
Which is the Best Passive Income Stream?
Dividend Stocks are perhaps the most popular passive income source in terms of earning huge amounts of passive income in India. Real money gaming is one of the easiest passive income streams where you can earn crores in winnings. However, the best passive income stream for you is the one that aligns with your interests and skills. Each of the above passive income streams is good to earn passive income if you have the interest and adequate skills to generate passive income out of that source.
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Income Tax Implications of Passive Income in India
Most sources of passive income in India, such as Mutual Funds, Bonds, Dividends, REITs, Stocks, etc are subject to tax implications under the law. However, income from the Public Provident Fund is not subject to tax implications, while income from the National Pension Scheme is subject to partial tax implications at maturity. The below table outlines the income tax implied on passive income sources in India:
Passive Income Tax Structures
| Passive Income Option | Taxability | Deductions |
| Real Money Games | Yes (All Net Winnings) | 30% TDS on the net winnings of users upon withdrawal |
| Long Term Rentals | Yes (Income from House Property) | Section 24– Flat 30% of Net Annual Value, Loan Interest DeductionSection 80C – Rebate on Loan interest repayment of up to Rs.1.5 lakh per annum |
| Dividend Income | Yes (Income from Other Sources) | NA |
| REITs | Yes (Income from Other Sources) | 20% of the total dividend – Only for Interest Expenditure incurred to earn dividends |
| Interest Income | Yes (Income from Other Sources) | Up to Rs.10,000 interest is exempt |
| Real Estate Crowdfunding | Yes (Income from Other Sources) | NA |
| PPF Interest and Maturity | Not Taxable | Sec 80C – Yearly Contributions to PPF up to 1.5 Lakhs p.a. |
| NPS | Partially Taxable at maturity | Sec 80CCD1 – Yearly Contributions to NPS up to 1.5 Lakhs p.a. Sec 80CCD2 – 10% of Salary for employer’s contribution |
FAQs on Passive Income in India
Some of the most popular and easy passive income ideas include social media influencing, blogging and creating YouTube videos, playing online real money games without investment, affiliate marketing, and selling photographs and stock photos.
There are several ways to create passive income in India, such as online gaming, stock investment, blogging, social media influencing, renting out a house or a car, participating in affiliate marketing schemes, etc.
If you are looking to earn a passive income of 50k, you can consider passive income ideas such as renting out your property, investing in stocks and crypto, or becoming a social media influencer. However, all of these will take time, effort, and skills to reach that level where you can earn 50k.
Passive income is not a scheme to earn quick money, and takes effort, time, and money to set up a running passive income stream. The amount of passive income you can earn depends on the type of passive income source you have invested in, where you can earn anywhere between thousands to crores.
The three main types of passive income sources that people use for generating passive income include assent building, investing, and assent sharing.
Some ways to earn passive income with little to no investment include creating a passive income business, playing free online real money games, investing in stocks, real estate, and cryptocurrency, becoming an online creator, creating software and apps, affiliate marketing, and owning digital real estate.
Most of your passive income is subject to taxation in India under Sections 80C, 24,05 and 80CCD1. Income from PPF and NPS is fully or partially exempt from taxation. To get the complete picture, you can refer to the table mentioned in the article.
