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  • Category: Internet, Networking and Connectivity

    Should I pay income tax for AdSense income in India?

    Do you want to know if AdSense income is taxable income in India? Learn more about the income tax rules for Google AdSense earnings.

    I would like to know if I need to pay income tax for the AdSense earnings in India. Some people are saying there is no income tax and some others are saying we have to pay tax. Where can I find more details about it? Can anybody tell me more details about.

    UPDATE: I found the answer for my question regarding income tax for AdSense earnings.
  • Answers

    8 Answers found.
  • Yes,

    You need to pay tax for any income that you are getting. It depends on how much income are you getting including Adsense income. If it is more than the tax limit, definitely you have to pay the tax.

  • Any income earned by you and added to your income in India, will be computed as income for the purpose of income tax in India. You can include this income under "Income from other sources" for the purpose of submitting your income tax return.

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  • As per the income tax rule money earned inside India comes under Income Tax. Money earned by gambling and betting also covered if you are from states like sikkim.

    As we are talking about Adsense - so if you are earning more than a given limit by income tax you are liable to pay tax.

  • Yes, you have to pay the Income Tax for Adsense revenue as well. The main thing over here is, your Adsense amount will credit to your bank account and it will be calculated along with your other transaction or balance or business or salary amount, now you have to file the tax accordingly.

    There is no any IT exemption for Adsense amount as well.


  • Yes my dear, you will to pay Income tax on Google Adsense earning. This is your extra income and Google doesn't paying income tax to income tax department in India. Google just keep your PAN and you are responsible to pay income tax to government.

  • It is mandatory to pay the Income Tax if your earnings are above Rs.2 Lakhs. That means if you are doing a job/business and your annual income is Rs. 1, 90,000/- and your earnings via Google Adsense are Rs. 11,000/- then you have to pay 10% income tax till it resides in the range of Rs. 2 Lakhs to 5 Lakhs.

    Further if your total income, crawls above Rs.5 Lakhs and stays below Rs. 10 Lakhs then you will have to pay 20% Income tax. At last if your annual income ranges above 10 Lakhs, then it is mandatory to pay 30% Income tax.

  • There are two ways of tax permit table in India. Trading and earning is the common thing we follow in India. Here service tax is the only exempted for advertising income tax. If you earning revenue through affiliate commissions or by providing through other related services on the Internet, Service tax would be levied on all such services.
    1. If you are getting this money in INR from Google, then you have to pay the service tax
    2. If you get this amount in USD/ any other Forex, then there is a way to avoid service tax
    Here the second option helps you to avoid tax in Adsense. If you are in service tax bracket, then you have to pay this on your revenues.

  • We do not need to pay service tax as;
    - We get a commission i.e 68% of the total advertising sold via Google (Adwords)
    - Google Adwords already collects service tax
    So for the advertising space sold on a site say for Rs. 100, google already collected service tax from advertiser when he bought it (from the adwords). Now google keeps Rs. 32 (its cut/charge for selling my advertising) and sends me my cut/part/commission i.e Rs.68. And since service tax has been already collected on the whole Rs.100 from the advertiser by google so i don't think that we need to pay it again as we are only getting a part in some sort of commission on the total advertising sold

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