I have gone through all the threads here at DP regarding income tax. Still I am not sure about the procedures to follow. Previously I used to submit my income tax return as usual with the tax deducted at source from my salary. Now I have earned more than Rs. 10 lakhs from my websites using adsense and affiliate programs in the year 2006-7. The payments include cheques in US dollars, bank transfers and cheques in indian rupees from Google and paypal. I have a few questions regarding how I should go about with paying my income tax. 1) Can I just show the entire income as "Website Income" under Business/profession in the return? Should I need to show any proof of income? Are bank statements enough? 2) Can I claim tax exemption for my expenses for running the website including hosting fees and money spent for purchasing or upgrading computers? Should I need to show any proof for this? 3) When should I pay the tax? Before March 31 is enough? Answers from Indian webmasters would be greatly appreciated