Purpose code for Google AdSense and blogging income
Did your bank ask you to provide the purpose code for receiving AdSense revenue or other income from your blogging? Find out the purpose code for various online income.
Reserve Bank of India started enforcing banks to mention a purpose code for various transactions involving sending or receiving money from abroad. Since AdSense payments are issued from abroad, some banks in India started calling the customers asking for purpose codes for their income.
If you are receiving AdSense income cheques from Google and if you are asked to provide a purpose code to your bank, this information may be helpful to you.
Reserve Bank of India (RBI) has provided a list of purpose codes for sending and receiving Forex transactions.
The most suitable purpose code for reporting AdSense income and other blogging income is P1007, which includes "Advertising, trade fair, market research and public opinion polling services", according to RBI guidelines. If you do a lot of sponsored reviews, content writing services etc, you may use P0805 (News agency services). Another relevant code is, P0802 (software implementation), which can be used if you are providing software related services like logo design, scripting, website optimization etc.
So, if you get a call from your bank asking for the purpose code for your AdSense income or other advertising income from your blogs, give the purpose code P1007. In most cases, the banks will ask what is the source of the revenue and they will locate the ideal code for that. In case, they need help finding the code, you can help with the above information.Other purpose codes for online income
Here are few other codes that refers to various online income:
1. P0017: Sale of intangible assets like patents, copyrights, trade marks etc. by Indian companies.
2. P0802: Software implementation (other than those covered in SOFTEX form)
3. P0803: Data base, data processing charges
4. P0805: News agency services
5. P0806: Other information services- Subscription to newspapers, periodicals, etc.
6. P0901: Franchises services – patents, copy rights, trade marks, industrial processes, franchises etc.
7. P1008: Research & Development services
8. P1009: Architectural, engineering and other technical services
9. P1011: Inward remittance for maintenance of offices in India
You can download a sample letter and submit to your bank to avoid delays from your bank. Read how to approach your bank regarding the wire transfer expected from AdSense.
Visit RBI official website for more information.
Are you making good revenue from AdSense? Read should I pay income tax for AdSense revenue. Also, read some blogging tips to become a successful blogger.
Read 12 simple and effective tips to improve your AdSense CPC
Follow 
Thanks to the author for sharing some very useful information about purpose codes for online income. I didn't have any clue about them till today, but, now I am fully aware about what they mean and which purpose code is applicable for my Google Adsense income and blogging income. It is good to have this purpose code provision from RBI.