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  • Category: Advertising

    I am earning online, should I pay income tax in India

    I am earning revenue online from some channels similar to Google AdSense. Should I pay income for the online income? What kind of documents I need to submit to income tax department? Please tell me what kind of documents needed to file taxes.
  • Answers

    3 Answers found.
  • Most of the affiliate programs has their own taxation rules, depends upon their nature of job, location and other criteria. Google's AdSense, Kontera, Chitika ads programs have their own and unique methods of taxation procedures, which was mentioned in their norms while opening the accounts. You should pay tax on the income earned if it crossed the threshold limit as you are residing in India. However, as per Google's AdSense if you're from U.S. and your income is more than $600/year, then you need to submit the IRS Form 1099 to the income tax department. For Indians, there is no such rule was mentioned by Google; you need to consult your tax officer on this concern.

    Lead Editor -
    Editor -

  • Yes, you need to pay Income Tax for revenue from Adsense program or any other form of online business revenue as long as money transaction is through Paypal or Cheque to your Bank a/c. Whatever you accepted the tax deduction from Google or Kontera in the early stage is different than your personal IT filing currently.

    Here, you have to pay the IT for the amount which has been credited into your bank a/c following the current transaction and you have to pay the IT when slab crosses or you have to just file the IT even slab don't cross.

    IT filing is a normal procedure as done by various employees or self employed with their form filling like Form 16 and relevant attachment etc. For more detail, you can ask any IT filing expert on this.


  • In my opinion, the online income is a different type of income. Of course, it can be added to the other income in your Income Tax Return. But the question arises about the expenditure which you incur on earning this income. You have to use the equipment like computers, laptops etc. to earn this income. You have to incur expenditure on payment of internet service charges to the internet service provided. The money has to be spend on the repairs and maintenance of the equipment you use for earning this income. Income Tax Act in India is not clear about these deductions when you earn money online from source like Google AdSense etc. I think you have to take the services of an experienced income tax practitioner explaining to him all the expenditure you have to incur on earning this income. After all, this is the compensation for your labour you get by incurring expenditure from your side first.

    "Teaching is my passion & sharing of knowledge is my motto"

    Sukhdev Singh
    Lead Editor & Platinum Member at ISC

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