Hello My Indian Brothers, I have some confusion Regarding Adsense income . 1) If i earn adsense income in india through blogspot.com. Will amount earned by my blog xyz.blogspot.com is taxable or not. 2) If i earn adsense income in india through my site www.abc.com Will amount earned by my site is taxable ? Thanks for Suggestions in Advance
I also have the same question .... I earn some good $$$$ from adsense and got the check in INR... and I promote clickbank products, chitika and got the checks in dollars... I contacted some auditors ... but most of them not aware of this internet business.... The ask me to pay income tax for my earnings... The reason : "You earn the money by using resources from india" Any body have clear idea about this...? Please help!
http://www.thehindubusinessline.com/iw/2003/08/31/stories/2003083100261400.htm seems to sum it up quite clearly. Okay, the point is not whether you be taxed but the issue is where you should be taxed in. The article states that if you earn the income while you are overseas then the income earned for that period is not taxable in India but of course you be taxed when you are overseas. If you are residing in India, ie be in India for over 182 days during the earned period and even if the income is acquired overseas, that income is subjected to taxes in India. Because of the double taxation agreement between the US and India, you do not need to pay taxes in both places, ie if you paid taxes in the US for that income, you do not need to do so in India or vice versa. Of course, that is as far as the legal nitty gritty goes. However for most people, they simply do not declare the income and get by fine. That however is not the recommended method of going about it. Legally, you need to pay taxes, either in the US or in India.