In this article we will let you know about how to calculate Income tax for Indian Youtubers on Google adsense. In India if you have a blog or have YouTube account and you are earning from AdSense then you have to Income tax on AdSense Income because in India, income from AdSense will be taxable. AdSense is a program run by google which allows advertiser for advertisement on the content sites of google network and these advertisements are administered, sorted, and maintained by google. For e.g. if you have a YouTube page and you uploads a video then google will allow an advertiser for advertisement on your video and you will earn money on per click or per impression basis, so when a person click on your video you will earn money. So question is how to calculate income tax on AdSense income because in India it is a taxable income so you have to pay tax on AdSense income. This article will help you to calculate your income tax on your AdSense Income. So Let’s Start how to calculate Income tax for Indian Youtubers on Google adsense.
How to Calculate Income Tax for Indian Youtubers on Google AdSense
In India a financial year counts from 1st April to 31st March and a person is liable to pay income tax for every financial year so you have to calculate your taxable income for a financial year and it is important to note that in India only income tax levied on the AdSense Income so you have to pay only income tax on the AdSense Income which means you don’t have to pay any other taxes like VAT, GST, or other taxes on your AdSense Income. There is no service tax levied on the AdSense Income. So there will be no service taxes or other taxes will be charged on your AdSense Income.
- Computation of Total Income– It is very easy to calculate total income First of all, you must add your financial year’s income then reduce your expenses you will find your net income, and your net income will be taxable. For e.g. if you earned 10 lakh rupees and your expenses is 3 lakh rupees so you have to deduct your expenses from income so after deduction of 3 lakh rupees, 7 lakh rupees will be taxable income. Now Question is what type of expenses can be deduct so answer is you can deduct domain expenses, internet expense, telephone expenses, website developing expenses, content writer expenses and any other personal expenses like interest on loan, vehicle expenses, rent and other expenses will be deduct from the income then you will get your net income. You can also deduct annual depreciation from your AdSense Income. So basically you will find your net income after deduction of expenses and other deduction. And your net income will be taxable.
After calculation of taxable income, you have to pay income tax on your taxable income. You have to pay income tax under the head of “profits or gains from business or profession”. During filing of income tax you have to fill the form so you have to fill ITR 4 for tax filing under income tax department of India. If income from AdSense is your pure income then you have to pay your income tax under the head of “Profits or gains from business or profession”. You have to pay income tax according to slab rates. so Hope now your confusion are clear about how to calculate Income tax for Indian Youtubers on Google adsense.
So Hope you like this guide about how to calculate Income tax for Indian Youtubers on Google adsense. If you are earning from AdSense then it is your duty to pay income tax on your AdSense Income in case of failure of income tax efiling you may have to face legal consequences. As you can see in above article that income from AdSense is taxable in India and you have to file your income tax according to tax slabs, and if your income is pure from AdSense then you have to pay tax under the Head of “Profits or gain from business or profession” only. Calculation of taxable income is very easy, you have to deduct all your expenses from the income. So if you are earning from YouTube or Blog where AdSense is paying you then you have to tax on that income.