Adsense Earnings Tax Filing In India:
Following the example of Amit Agarwal there has been a surge in the number of Indian students as well as mothers and professionals who have turned bloggers and have been achieving an appreciable level of success in the same. Thanks to their success the community of bloggers in India has reached higher levels. As a reason of their burgeoning work their levels of income have also experienced a sharp rise and this implies that they are also liable to pay their taxes to the government on a regular basis for the income they have been making through adsense earning.
The first step in filing for taxes on these earnings is to make an account of how much is being earned from the blogs. For tax filing in these cases there are two ways to go – income from other sources or income from profession or blogging. The first one is applicable for people who are not that much into blogging or do not earn that much from these activities. The second one applies for people for whom the bigger slice of their earnings comes from the adsense earnings. In case one wants a record of adsense earnings it can be downloaded from the adsense dashboard. As per experts the best option as far as filing taxes on adsense earnings is to mention it under professional receipts – income from website.
These are very crucial when it comes to filing the tax returns on the basis of adsense earnings. It is also important to keep in mind that the expenses pertaining to adsense have to be shown as deductions from the said income. This is the reason it is rather vital to keep a track of all the expenses that are incurred while working online. Following is a list of expenses that need to be included in this list:
· Internet bills
· Web designing expenses
· Magazine and newspaper bills
· Advertising expenses
· Print and stationery
· Staff salary
· Domain hosting and naming bills
· Computer purchase bills
Once all these expenses are deducted the amount that is remaining will be used for determining the amount that needs to be paid in this regard. It is also important to keep in mind that bloggers are not supposed to pay service taxes on the income they make from adsense. One can also include the premium being paid for medical insurance that has been bought for self or for a family member. The premium being paid for LIC policies can also be included in this regard. Fixed saving deposits that have been opened in nationalized banks are also useful for this purpose.
Certain other expenses and costs can also be included for this purpose like the decrease in value of one’s capital items such as buying a new computer.