Taxes on Adsense and Affiliate Income in India

By: DoYouKnow.IN | Views: 614 | Date: 05-Mar-2013

If you are earning a big amount and also spending considerable amount on advertising, hosting for your blog than you must put it under Income from Business or Profession to get the deduction of these expenses. According to section 58 of Income Tax Act, 1961, no expenses is deductible from the Income from Other Sources.

Google Adsense is the biggest source of Income for every Indian Blogger, some blogger earns good while some struggles to meet their running expenses. But in between these one must not forget about the taxes on the adsense and other online income like affiliate income earned.

When you are earning online income like adsense there are two kinds of taxes that you need to concern about

  1. Service Tax
  2. Income Tax

Service Tax on Adsense Income

The sale of advertising space or time slots is included under (G) Section 66D of Finance Act, 2012.

The Educational Guide on Service Tax issued by the Indian Ministry of Finance on June 20, 2012, clarifies that Service Tax is to be levied on the sale of space or time for advertisement to be broadcast on radio or television but not on sale of space in print media, bill boards, buildings, cell phones, ATM Machines and Internet.

Service Tax on Google Adsense

So even if your adsense income over Rs. 10 lakhs per annum (threshold limit of Service tax) irrespective of the currency in which you receive, you don’t need to worry about service tax but it is always advisable to get yourself registered with Service Tax if your earning exceeds the threshold limit of Service Tax Registration (Rs. 9 Lakhs).

Service Tax on Affiliate Income

The service tax is only exempted for advertising income but if you who are earning revenue though affiliate commissions (like Amazon Associates) or by providing other related services on the Internet, service Tax would be levied on all such services.

Moreover, service tax is levied on the Gross Amount Received rather than on the Net Income (i.e. Gross Amount – Expenses).

You can however claim Small Scale Service Provider exemption if the gross value of such services is less than Rs. 10 Lakhs. In other words, you are not required to pay any tax if the gross value of services provided by you is less than Rs. 10 Lakhs.

Income Tax on Adsense Income and Affiliate Income

You can declare these Income under two heads

1. Income from Other Sources

In case your earning from adsense or other online methods is not the main source of your income than you can treat it as a Income from Other Sources.

2. Income from Business or Profession

If your main source of income is online earning that you can show it under Income from Business and Profession.

Tip: If you are earning a big amount and also spending considerable amount on advertising, hosting for your blog than you must put it under Income from Business or Profession to get the deduction of these expenses. According to section 58 of Income Tax Act, 1961, no expenses is deductible from the Income from Other Sources.

Previous Page Next Page

People Searching On This Page:
  • income tax on google adsense india

Related Pages


CHANGING PHASE OF INDIAN RAILWAYS

CHANGING PHASE OF INDIAN RAILWAYS

Articles | Travel | Travel Tips
Date:
06-Aug-2011  Views: 1050

One of the sectors in India with a striking growth is none other than ‘The Indian Railways’. The ultimate factor behind this development has been the ...
History of Rakhi Festival - Raksha Bandhan in India

History of Rakhi Festival - Raksha Bandhan in India

Articles | News & Society | Culture
Date:
05-Aug-2011  Views: 7633

Raksha Bandhan is celebrated every year on ‘Shravan Purnima’ (Full Moon Day of the Hindu month of Shravan), which generally falls in the month of Augu ...
India finds huge uranium deposit

India finds huge uranium deposit

Articles | Engineering
Date:
28-Jul-2011  Views: 1536

INDIAN officials have announced the discovery of a vast uranium deposit, which they claim is among the biggest in the world. ...
SEO Services India – A Combination of Expertise and Professionalism

SEO Services India – A Combination of Expertise and Professionalism

Articles | Internet | SEO
Date:
21-Jul-2011  Views: 1045

SEO services India has become a vital activity of every organization engaged in online trading. An attractive corporate website does not make the Inte ...
List of Indian Nobel Personalities - Nobel Personalities in India

List of Indian Nobel Personalities - Nobel Personalities in India

Articles | Biography | Indian Personalities
Date:
21-Jul-2011  Views: 5161

Here we have provided indian nobel personalities with their photograph. We haver also provided introduction about indian personality. ...
Post Your Comments (No Login Require)
Name : (required)
Email : (required)
Website :

Comment : (required)

15  + 1 =     
Comments
People Searched About:
Income Tax On Google Adsense India   |  
Google : 32 times | Yahoo : 42 times | Bing : 106 times |