Calculate your Tax Liability on Income from Adsense The article could interest AdSense Publishers who pay tax in India.
Originally Posted by Minterest Thanks amit... I was looking for a solution for this.. actually I have PAN Card which I applied for investing in stocks and then I read in rediff that there is no need to file IT returs if ur income is less than 1 Lac... but I dinnt filed the Tax even though I earned more than 1 Lac. just because I didnt know how to calculate the tax... means this is something different.. But I am looking forward to pay the taxes from next year onwards.... Also i will appreciate you if you answer to some more questions.. Will I have to pay any taxes if my cash balance is less than 1 Lac? It means if am reinvestig all the money am earning in the business itself.... Repp++ for you
Regarding, what about payments from other Affiliate Programs? Live commission junction and others and also what about the payment we receive to our paypal account?
exporters have more benefits from the income tax , and NRI people don't want to pay this because of they are bringing foreign money to India and its good for Indian economy , then why adsense publishers should give income TAX ??? i think we have to move any other country and take the NRI bank account put the adsense earnings into there avoid this dumbass income tax payment ...!!!
That makes sense... actually we are also like NRIs we also bring dollars here and it contributes some part of this Rupee Rise... So we must also be exempted from this Tax.....
LOL, We ain't nothing like NRI, bro' (pardon the language!). I've known an accountant company for 4 years because they handle my company finances and had this long talk with them when I really started raking it with AdSense. Here are a couple of things: 1. We simply cannot escape the income tax, period! Yes, we can show a whole lot of expenditure (like Amit mentioned in his blog post), but as we know the expenditure is very low for an individual. So... 2. If you are receving AdSense on your name, form a company (even if its a proprietary concern, not necessarily a Pvt. Ltd.). With this you would be able to bill in salaries of people who work (?) for you. For example, I have 2 drivers, 1 office boy (nice chap), and two developers who work for my web company. Don't forget to put in bills for the books, offine maintenance, dinners/lunches, car expences etc. 3. No need to pay service tax - AdSense is akin to the rent youreceive for an apartment (I guess that's what the CA told me).
hey I didnt mean it.. I simply said that because just like NRIs we are also bringing dollars here....
Really depends on how much you make from AdSense - you can add all your travel bills, domain purchases, hosting, as expenses.
Why do you use use the word "cheat" ? When you are attending a conference in another city or buy a web domain or paying fees to the hosting service, that's an expense. Why would you associate this with the word "cheat" ?
Exactly. The point I was trying to make is if you change your AdSense account from an Individual to a Company, you would be able to push in a lot more expenditure. For instance, at our office we have this Saturday Pizza Lunch (from Pizzahut or Dominos or Little Italy *yum*) and the bill is footed by my web company. This helps me in two ways - (1) I can show genuine bills for expenditure and (2) push in the "employee retention" tactic (who doesn't love a free pizza every Saturday - come summer, the pizza is complemented by a beer . And over the 4 years of running the two companies, no employee has left - except, obviously, the sales people (who aren't invited to the Saturday parties any way) Coming to the issue of Sales tax - it's still a gray area. I consulted with the CA again this morning (Amit, thanks for the post which gave me the impetus) - this tax is applicable ONLY if the sale is made in India. Since Google U.S. (and NOT Google India) is purchasing the space on web sites, there is no question of a Sales Tax component. I know some of you might say - "what about those AdSense ads from Indian companies?" - "Will this not be considered a sale in India"? The answer is NO because (again) we are going through a mediator based out of our country. If you are earning 3 lacs per year from AdSense, you can be 100% exempted from income tax... how? Here goes: 1. You are 100% expempted till the treshold value which is Rs. 110,000 2. If you put an additional Rs. 100,000 in a tax saving scheme (Tax Advantage funds - I recommend Fidelity, or ULIP, or whatever), you are exempted again 3. The rest of 90,000 can be shown as expenditure (if you can produce genuine bills). In my opinion, once it crosses the 3 Lac mark, you end up paying tax... there is no escaping. And once I realized this, I happily pay the correct amount for a good night's sleep.
Fairyoflove you're I.P. Has been logged and you will soon be contacted by the Government On a more serious note, the decision to pay tax (and how much) resides with the individual. As for me, I feel paying tax truthfully helps me sleep better at nights. There are too many things in life (such as not getting high ranks for a page you have spent a day on) to be worried about than the tax issue. Pay it up and forget about it.
The best post of the year I also do the same things, but stick with the individual concept and not a firm. Because if you are a firm/company : You are obliged to pay tax for every single money you earn.. (you are not exempted from tax till 1,10,000 Rs as an individual can do in case of firm.. )