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Need to Pay TAX for adsense INDIA

Discussion in 'Payments' started by belranjan, Jun 11, 2010.

  1. Ajeet

    Ajeet Well-Known Member

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    #21
    Absolutely. I have been paying tax on AdSense for the better part of the decade.

    Correct. Tax is paid on profit, not revenue. The Income Tax department can easily find you. They can access your bank account, credit card account, and also track your big-ticket purchases. Long story short, you must file your returns each year, and pay the required taxes.

    Not entirely true. There are several sections of the Income Tax Act that provide for tax-free returns :)
     
    Ajeet, Jun 15, 2010 IP
  2. kamalchandel

    kamalchandel Active Member

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    #22
    You don't have to pay any tax in india for adsense income untill you net income is not taxable.
     
    kamalchandel, Jun 17, 2010 IP
  3. Ajeet

    Ajeet Well-Known Member

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    #23
    For that matter, you do not have to pay any tax in India, until the corresponding Income is taxable (based on type of income as well as amount).
     
    Ajeet, Jun 17, 2010 IP
  4. clbyodo

    clbyodo Peon

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    #24
    Yes,you have to pay tax in India if your earnings are above taxable limit.
     
    clbyodo, Jun 17, 2010 IP
  5. hawtringtonz

    hawtringtonz Peon

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    #25
    You have to pay taxes in Canada too now :(
     
    hawtringtonz, Jun 17, 2010 IP
  6. shanon007

    shanon007 Greenhorn

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    #26
    Google deducts some earning as TAX if you are from US only
     
    shanon007, Jun 18, 2010 IP
  7. MarTh-

    MarTh- Well-Known Member

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    #27
    Women are taxed more than men in India by Google? really? That's a very poorly made tax system

     
    MarTh-, Jun 18, 2010 IP
  8. dutch1

    dutch1 Peon

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    #28
    You are wrong on this one. Canada requires that you pay taxes on ALL your wordly income, if you are a Canadian. Even online income according to my accountant.

     
    dutch1, Jun 18, 2010 IP
  9. tuba

    tuba Member

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    #29
    yes, you should pay tax if its taxable in India
     
    tuba, Jun 18, 2010 IP
  10. abraxas

    abraxas Well-Known Member

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    #30
    No, they are not. He meant the limit of taxability - free up to 1,70,000 (for m) and free up to 1,90,000 (for f).
     
    abraxas, Jun 18, 2010 IP
  11. Largon

    Largon Peon

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    #31
    Quote Originally Posted by MarTh- View Post
    Women are taxed more than men in India by Google? really? That's a very poorly made tax system
    No, they are not. He meant the limit of taxability - free up to 1,70,000 (for m) and free up to 1,90,000 (for f).

    So women are taxed less than men. I thought this was interesting too.
     
    Largon, Jun 18, 2010 IP
  12. Ajeet

    Ajeet Well-Known Member

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    #32
    Right on both counts: (i) Women are taxed less (ii) It is interesting :)
     
    Ajeet, Jun 18, 2010 IP
  13. sushmanayan82

    sushmanayan82 Well-Known Member

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    #33
    yes, you shold pay tax
     
    sushmanayan82, Jun 25, 2010 IP
  14. sachin410

    sachin410 Illustrious Member

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    #34
    Go to a tax consultant.

    Your Adsense income is taxable (unless you are operating under STPI etc).

    Domain registration costs can be shown as expenses if done for a single year.

    You should split up multi-year registration expenses. If you register a domain for 3 years, you should show 1/3 rd cost in each of the 3 years.

    All advertising/promortion costs can be shown as an operating expenses.

    If you are paying for hosting, you can show it as an expense.

    If you buy a server, it will be a capital expense and you can't show it as an operating expense. Instead you will get a depreciation benefit.
     
    sachin410, Jun 25, 2010 IP
    Ajeet likes this.
  15. empir

    empir Peon

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    #35
    its better you to consult first CA regarding this matter...;)
     
    empir, Jun 26, 2010 IP
  16. theonly1

    theonly1 Active Member

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    #36
    any income from business is Taxable in India
    IT department is not bothered what you did and how you did ,if its an Income ,You pay taxes after claiming any expenses.

    If you don't pay they will catch you and you end up paying Very High penalty + Interest and if you don't you will go behind bars and IT department will take steps to recover Tax by auctioning of your Home and other assets.
     
    theonly1, Jun 26, 2010 IP
  17. neerajkumar

    neerajkumar Peon

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    #37
    i have my eyes on this thread. @-) !
    even i have to pay tax from this month :\
     
    neerajkumar, Jun 27, 2010 IP
  18. theonly1

    theonly1 Active Member

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    #38
    I will advice anyone who have not pay taxes in past to file revised/new IT returns and deposit the tax accordingly.IT act has very less interest rate but high penalties if they caught you.Its better to pay few Thousand in Tax and Relax.
     
    theonly1, Jun 27, 2010 IP
  19. EbizBrain24

    EbizBrain24 Banned

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    #39
    i think it is necessary to pay tax for much higher income than you. You don't need right now.
     
    EbizBrain24, Aug 7, 2010 IP
  20. COBSolutions

    COBSolutions Well-Known Member

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    #40
    When you are earning from adsense there are two kinds of taxes that you need to pay, one is Service Tax (for services that you are providing to your advertisers), the other is Income Tax.

    Now you need to pay service tax only if your total yearly income exceeds Rs 10,00,000/- (Gross)
    You need to pay income tax if your yearly income exceed Rs 170,000/- for men and Rs 190,000/- for women

    Now there are certain exemptions available, the running cost, which includes advertisements purchased, hosting charges or any other related expenses on running your online business. Towards this you will have to produce credit card bills/statements through which you made the payments or paypal statements or any other form to show them the expenditure, towards this also keep all the invoices generated by various service providers, like invoices of hosting companies, invoices generated through paypal etc. Since paypal is now linked to your PAN No. this should be a breeze for the IT department, as they do will be having all the statements provided by paypal.

    Here is a twist to the whole scenario. There is a provision somewhere in IT that if you are running a business abroad and bringing the income to India, it is non-taxeable except that you have to pay Income Tax, but other forms of tax are not applicable on that amount, like Service Tax (this is applicable to you as you are providing a service through adsense ads-as advertisement income earnings are service taxeable, even television companies pay tax for advertisements displayed). You are considered to be running your business abroad as in case if your servers are abroad and run from there then your actual business point is outside India. However, to get you all these benefits you need to hire a Chartered Accountant who is clueful to these online earnings scenario and knows various provisions related to these earnings and exemption, so best option for you is to go and contact a good CA.
     
    COBSolutions, Aug 22, 2010 IP