After 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.