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Adsense Earnings Tax Filing In India

Adsense earningsAfter Amit Agarawal thousands of Indian students, professionals, moms  are becoming full time blogger. They are doing great work. In last few years many professional bloggers emerged from India taking ‘Indian Blogger Community’ to a next level. With rising bloggers community their income also increasing rapidly.

I have started my blogging journey in 2012, though I was writing haphazardly on many website before I started blogging in true sense. If you check my Adsense earning for 2012 it’s been in 5 figures in dollars; which is a descent amount to live life happily in India.

When any Indian earns money he is liable to pay taxes to Indian government. There are few slabs provided by income tax department to file an income tax for every Indian these can be found on Indian govt site, just Google it. ( I am purposefully not providing them as they are subjected to change every year) (Please note that I am neither a professional Chartered accountant nor any tax expert; whatever I shared here is my personal experience, so before you file tax please contact your CA)

Once you finalise your total Adsense earning for a financial year, it become easy to see how we can file tax, these can be shown under the head ‘Income from Business or Profession’ and ‘Income from other sources’. If you are a full time blogger and earning major chunk of your income from blogging then it will come under ‘Income from Business or Profession’ otherwise it will come under ‘Income from other sources’

Receipts of monthly Adsense earnings (One can get it from Adsense dashboard) are really important while filing tax on Adsense earnings.

It is important to show all expenses related to Adsense earning as a deductions from that income. SO it is important to keep track of all expenses that we spend on our online business. It includes Internet bills, Newspaper & Magazine bills, Print & stationary, Domain name & Hosting bills, web designing cost, advertising expenses, staff salary, computer purchase bills etc. After deducting all business related expenses whatever income you left is liable to pay tax.

Recently it has been clear that blogger does not require paying service tax on Adsense earnings. (Please understand that service tax is different than your income tax). To know more check out the this post on labnol.

There are few other things that can help you to save the tax like premium for medical insurance for self and family member, premium for LIC or any other company approved by Income tax board, Fixed saving deposits in nationalized banks etc…..list is exhausting and can be found here.

 

 

13 comments… add one

  • Hi Sachin,
    Wish you all the best in your online ventures.
    I would like to know which theme are you using for SRI?
    I liked it very much and want to use it for one of my affiliate site.
    Appreciate if you could share this info.
    Regards.

    • Sachin Bille

      Hello Kuldeep,

      Welcome to SRI. I use Thesis 1.8.5 theme and I did made some changes to it, that is why it looks so different than original thesis theme.

  • Thanx for the info.
    One more help. Sachin, ours is a Hindi news website but I am facing a problem. Adsense Ads are not appearing on my site. Someone said that it is because Adsense is not approved for Hindi websites. But the fact is that on many other Hindi sites ads do appear. Even, ads do appear on a few Gujarati websites. Can you throw some light why is it so? Thanks and regards.

  • Monal

    Hi sachin,

    Nice and brief info on taxes on adsense earnings. Just wanted to know whether Google deducts tax and then pays the net amount or do they pay in entirety and we are required to pay taxes to the Indian Government. I am just worried because I don’t want to pay taxes twice.

    Thanks
    Monal

    • Sachin Bille

      For Indian publishers Google does not deduct the tax, we have to pay it to the Indian Gov.

  • Somesh

    Hi Sachin. Thanks for the post. Can you please enlighten me on what happens if there are two individuals among whom the profit is shared? How will be tax/tax-slab be calculated then?

    • Sachin Bille

      Hello Somesh,

      I didn’t understand your concern. How you can share your adsense earning with someone else? Assuming that you are an Indian then you will get your adsense earning with check so you have to pay the taxes and if you are sharing adsense placement on your website with other adsense publisher then whatever money they will earn, they have to pay the taxes.

  • Pavan

    Hi Sachin,

    Do we have to open a current account to show expenses for our blogs?

    Pavan

    • Sachin Bille

      Filing tax is nothing to do with whether you have current account or saving account.

  • Hi sachin, thanks for sharing the info on adsense taxation, but still its quite confusing if it is compulsory to pay service tax or not. I guess its better to consult an auditor. Anyways thanks for sharing the info

    • Sachin Bille

      As far as I remember it is not necessary to file service tax on Adsense earnings; only you need to pay income tax (This apply only if you are leaving in India). But it is better to consult CA, he will guide you through all steps.

  • frank

    hi, this will be my first income tax payment on adsense earnings . kindly guide me through the process of filling ITR – 2 .
    I intend on filling under income from other source .
    Will it be considered as income arising outside india since payment is made from Google USA. ?
    what information do i have to fill in TDS/TIN ? since google doesn’t issue any to indian publishers .
    please help me out!
    thank you!

    • Sachin Bille

      Hello Frank,

      Thanks for stoppling by!
      Please note that I am not a CA to guide you through this, it is always better you consult a professional for this. Yes; you can show your Adsense income as an ‘Income’ from other sources if you already getting paid for some work or you have some other business. As Google does not deduct any tax amount from your earning you have to show total money earned from Adsense in a financial year and as per the Tax slab you have to pay the taxes.

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