Income Tax for Indian Freelancers and Bloggers

In recent times, a new profession has emerged which is known as blogging and article writing. People are earning a lot of money by doing blogging. A question arises, Is there any Income Tax for Indian Freelancers and Bloggers?

Income Tax for Indian Freelancers and Bloggers

A significant source of Income of such bloggers engaged in blogging is through:

  • Google Adsense, AdMob, Timebucks, or any other advertising platforms
  • Affiliate Marketing
  • SEO Services, Content writing services, blogging services
  • Freelancing Platforms and Income generated by it

The best thing about earning from blogging is, it doesn’t require any age cutoff, and you can earn it the entirety of your own.

Many maturing bloggers, who are earning handsomely amount from blogging, are uncertain about paying charges on Income Tax for Indian Freelancers and Bloggers. Here right now will attempt to give an outline of the way in which expense is payable on Income Tax from blogging.

Income Tax for Indian Freelancers and Bloggers (A complete knowledge)

Personal Income Tax and Service Tax are obligated to be paid on income earned from blogging in India. The way of calculation of Income Tax has been clarified in detail underneath:

On the off chance that an individual is earning from rent/fixedsalaries/interest from banks/capital additions calculation of Tax payable on his Income won’t be done in the accompanying way. This article has been explicitly coordinated towards clarifying the way of calculation of income earned from any blogging and other online sources which structure a piece of pay from any business or calling that is Income Tax for Indian Freelancers and Bloggers.

What are the Crucial Benefits of filing Income Tax?

The most significant advantage of paying Income Tax for Indian Freelancers and Bloggers and filing your annual government income tax form is that the salary uncovered by you in your personal expense form is viewed as your actual salary.

On the off chance that you are required to show your salary at wherever in future, just the sum uncovered in your annual expense form would be considered as a substantial verification of Income Tax for Indian Freelancers and Bloggers.

Besides, regardless of whether you apply for any loan from a bank, you are compulsorily required to show them your annual income tax form and just the salary revealed right now return would be considered as a substantial wellspring of pay.

Also, there are numerous costs which are finished by the Govt. like the development of streets, air terminals and so on. The Govt causes these costs from the tax gathered. It is a lawful right of the govt to gather Income Tax and in the event that you don’t pay your personal duty, they may give you a notice and request you to pay your Income Tax alongside Interest and gigantic punishments.

Along these lines, it is profoundly prudent for all pay winning people to document their personal expense forms before the due date with the Govt.

Computation of Income Tax for Indian Freelancers and Bloggers

Any individual getting income from any source is subject to pay an annual assessment according to the duty rates endorsed by the govt. While processing the payment on which duty is to be paid, the aggregate of all Incomes earned by a Blogger is to be considered.

You are mentioned to take note of that Income Tax isn’t payable on the Total Revenue earned however is payable on the Total Income earned. All out Revenue is the Gross Amount got and Total Income is the sum earned after Depreciation and Payment of Expenses caused to win the Revenue.

The distinction between Total Revenue and Total Income has been clarified with the example beneath:-

  • All out Revenue/Total Turnover: Rs. 13,00,000
  • (Less) Total Expenses Incurred to acquire Revenue: Rs. 2,00,000
  • (Less) Total Depreciation on all Assets: Rs. 1,50,000
  • (=) Gross Total Income: Rs. 9,50,000
  • (Less) Deductions took into account indicated Investments: Rs. 1,00,000
  • (=) Total Taxable Income: Rs. 8,50,000

Expenses allowed to be deducted while computing Income Tax for Indian bloggers

Any sum which has been paid to acquire income is permitted to be deducted as a cost. A couple of instances of the costs permitted are as per the following:-

  • Space Hosting Expense, Domain Purchase Expense, Blog Designing Expense and so forth
  • Lease Expense
  • Power Expense/Telephone Expense/Internet Expense/Water Expense
  • Pay to Employees
  • Instalment to Freelance Consultants
  • Petroleum/Diesel Expenses
  • Some other cost caused to gain Revenue

Here, you are mentioned to take note of that only those costs acquired to gain Revenue are permitted to be deducted as a cost. For e.g.: If you welcome a customer for a gathering in a 5-star lodging, the instalment made to the 5-star inn is permitted to be deducted as a cost as this gathering would help you in expanding your business and would assist you with procuring additional salary.

It is insignificant whether you get additional business from this gathering or not, the point to be considered is that this cost was caused to increase additional business.

Be that as it may, in the event that you go to a 5 Star Hotel for your own motivation and not for business reason, it would not be permitted to be deducted as a cost.

To guarantee these costs, you are additionally required to give evidence of such costs. In this manner, you are required to keep up a record demonstrating bills of the considerable number of costs acquired.

What is Depreciation on Assets?

To procure income, bloggers additionally buy a few resources. So to acquire income, in the event that you’ve bought any benefits like portable/PC/vehicle/office furniture and so forth you are likewise permitted to diminish this type of cost caused for the calculation of absolute pay.

Be that as it may, the advantage emerging from the cost acquired on the previously mentioned resources would emerge for over 1 year as these benefits, for the most part, have a life expectancy of over 1 year. As the advantage would emerge for over 1 year, the cost brought about will likewise be ascribed to over 1 year.

In such situations where the cost has been brought about for acquisition of any Asset, you are not permitted to guarantee the entire cost at one go. The complete consumption brought about for buying the benefit is designated over the life of the advantage and you are permitted to guarantee this use proportionately over the life of the advantage. This can be clarified with the assistance of a model beneath:-

For e.g.: If you buy a PC for Rs. 30,000 and the normal existence of the PC is 3 years, you can’t guarantee the entire Rs. 30,000 as a cost in one year as the life of the Asset is over 1 year and this PC would be giving you benefits for over 1 year. Right now would just be permitted to guarantee Rs. 10,000 (for example Rs. 30,000/3)

This strategy for proportionately asserting a cost dependent on the life of the Asset is called the devaluation of benefit. You are required to show the verification of uses made on the acquisition of Assets by demonstrating essential bills for the equivalent.

It would be ideal if you Note: The Individual can’t himself choose the life of an advantage and the Govt has as of now pre-characterized the life of the considerable number of Assets.

Filing Income Tax for Indian Bloggers

Toward the year’s end, each citizen is required to document an announcement of his taxes. This announcement of duties is known as the Income Tax Return and this Statement ought to show:-

  • The incomes earned and the sources from where they are earned
  • The consumptions brought about
  • The devaluation asserted on resources
  • The ventures made which have been asserted as a Deduction
  • The Total Taxes paid incl. the Advance Tax paid or the TDS deducted (assuming any)

Postponement in an installment of annual duty and recording of Income Tax Return would uphold toll of Interest and Penalty for the deferral. In the event that an individual has unintentionally made good on abundance charge, he can likewise guarantee Refund of the overabundance charge paid.

The above article is just an outline of the calculation of personal expense on income from Blogging and it has been streamlined in order to make it more clear for non-money individuals. You are mentioned to allude to the Income Tax Act for careful translations.

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