Hello everyone.
I am a webmaster earning decent income from my websites for the past one year.
Previously as a govt employee, I used to submit my income tax return as usual along with form 16 with the tax deducted at source.
Now I have earned around Rs. 5 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, most of the earnings are advertising revenues from US based companies.
I have a few questions regarding how I should go about with my income tax. I am thoroughly confused as have no prior experience.
1) Should I pay tax for the entire income? Are there any exemptions on foreign income?
2) Can I just show the entire income as "Website Income" in the return? Should I need to show any proof and if yes, what?
3) 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?
4) When should I pay the tax? My friend told me that today, March 15, is the last date for paying income tax. Can I pay the same later and if so, is there any fine?
Answers would be greatly appreciated
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Income tax doubts for a webmaster
Replies (17)
Dear,
1)You have to pay tax on entire income i.e.Rs.5 lacs.No there is no exemption on foreign Income.If you are Non resident and income is accrued and received outside India then it is not taxable in India.Otherwise it is Taxable.
2)You can Show website Income as professional receipts and Income and Expenditure can be prepared, in which Website income can be in Income side while any expenditure for preparing website i.e expenses for running and hosting fees(as you said) can be shown on Expenditure side. Net Income(Income-Expenditure) is Taxable as Income Under Head "Income from business and Proffession"
3)You have to maintain Receipts and bills of such exepenses.
4)You have to pay Advance Tax by 15th March. But you can pay tax by 31st July by Penal Interest of 1% on Tax Amount.You have to submit Income tax return by 31st July 2007.If your Professional receipts i.e. Website receipts exceeds Rs.10 Lacs you have get your books of account audited from C.A.
1)You have to pay tax on entire income i.e.Rs.5 lacs.No there is no exemption on foreign Income.If you are Non resident and income is accrued and received outside India then it is not taxable in India.Otherwise it is Taxable.
2)You can Show website Income as professional receipts and Income and Expenditure can be prepared, in which Website income can be in Income side while any expenditure for preparing website i.e expenses for running and hosting fees(as you said) can be shown on Expenditure side. Net Income(Income-Expenditure) is Taxable as Income Under Head "Income from business and Proffession"
3)You have to maintain Receipts and bills of such exepenses.
4)You have to pay Advance Tax by 15th March. But you can pay tax by 31st July by Penal Interest of 1% on Tax Amount.You have to submit Income tax return by 31st July 2007.If your Professional receipts i.e. Website receipts exceeds Rs.10 Lacs you have get your books of account audited from C.A.
Thanks a lot for the reply.
Can I get any tax benefits by registering a company for my websites?
[quote=2564]Dear,
1)You have to pay tax on entire income i.e.Rs.5 lacs.No there is no exemption on foreign Income.If you are Non resident and income is accrued and received outside India then it is not taxable in India.Otherwise it is Taxable.
2)You can Show website Income as professional receipts and Income and Expenditure can be prepared, in which Website income can be in Income side while any expenditure for preparing website i.e expenses for running and hosting fees(as you said) can be shown on Expenditure side. Net Income(Income-Expenditure) is Taxable as Income Under Head "Income from business and Proffession"
3)You have to maintain Receipts and bills of such exepenses.
4)You have to pay Advance Tax by 15th March. But you can pay tax by 31st July by Penal Interest of 1% on Tax Amount.You have to submit Income tax return by 31st July 2007.If your Professional receipts i.e. Website receipts exceeds Rs.10 Lacs you have get your books of account audited from C.A.[/quote]
Can I get any tax benefits by registering a company for my websites?
[quote=2564]Dear,
1)You have to pay tax on entire income i.e.Rs.5 lacs.No there is no exemption on foreign Income.If you are Non resident and income is accrued and received outside India then it is not taxable in India.Otherwise it is Taxable.
2)You can Show website Income as professional receipts and Income and Expenditure can be prepared, in which Website income can be in Income side while any expenditure for preparing website i.e expenses for running and hosting fees(as you said) can be shown on Expenditure side. Net Income(Income-Expenditure) is Taxable as Income Under Head "Income from business and Proffession"
3)You have to maintain Receipts and bills of such exepenses.
4)You have to pay Advance Tax by 15th March. But you can pay tax by 31st July by Penal Interest of 1% on Tax Amount.You have to submit Income tax return by 31st July 2007.If your Professional receipts i.e. Website receipts exceeds Rs.10 Lacs you have get your books of account audited from C.A.[/quote]
Hi Wilkins,
No you dont get any benefit even after registering for company
No you dont get any benefit even after registering for company
good and wellanswered-r.....
I LIKE TO SEE UR PURPOSEFULL WEB......
hello everyone
My father is an NRI and he wants to invest in Mutual funds and i am having some doughts
-is the return we get from those mutual fund investments is taxable in the hands of an NRI
if its is taxable is it advisable to invest in the name of my mother who is an resident indian or any better option will be avaible to avoid tax on returns (which will be in the form of dividents) from those invetments in mutual funds
Answers would be greatly appreciated
My father is an NRI and he wants to invest in Mutual funds and i am having some doughts
-is the return we get from those mutual fund investments is taxable in the hands of an NRI
if its is taxable is it advisable to invest in the name of my mother who is an resident indian or any better option will be avaible to avoid tax on returns (which will be in the form of dividents) from those invetments in mutual funds
Answers would be greatly appreciated
Hi,
I am a salaried person earning an income of 3 lacs per annum.
I have a sister who is suffering from mental retardation (50%) as certified by the General Hospital Ernakulam ( Disability Certificate for Physically Handicapped Person) Vide Govt. Of India, Ministry Welfare Lr. N: A2.83, New Delhi Dated 6/03/1996.
I heard that as per " THE PERSONS WITH DISABILITIES (Equal Opportunities, protection Of Rights And Full Participation) ACT, 1995" am i eligible to claim Rs. 50k( Fifty Thousand Only) while submitting my IT returns.
I have already submitted the return for the FY 2006-07 on 18th Feb 2008.
Is it possible for me to resubmit the return.
Awaiting for a reply,
Rajaneesh G
Mob: - 9895011524
Sir,
while filing my Return of Income by mistake in the income from salary column i posted Rs.1,60,000/- insstead of Rs.60,000/-. What shoud i do? The department people said that I am not eligible for rectification U/s 154 of I.T. Act.
Yours Sincerely,
B.P.Daniel
Sir,
while filing my Return of Income by mistake in the income from salary column i posted Rs.1,60,000/- insstead of Rs.60,000/-. What shoud i do? The department people said that I am not eligible for rectification U/s 154 of I.T. Act.
Yours Sincerely,
B.P.Daniel
We have remitted TDS on Professional charges under 94I instead of 94J for the month of September 2008. But the Quarterly return filed correctly (it was showned in 94J itself). Is there any problem? Do we need to write any letter to IT Dept or remitting Bank (it is online remittance). Kindly provide the suggession at the earliest.
hi everyone,
my management has deducted money for income tax in the month of march 2008. but for want of PAN they didnt gave me TDS. recently i got my PAN number. can i claim my TDS now. further please explain me the actual procedure how to apply for tax.after getting TDS can i personally fill the application form or what to do. for online application is it necessary to have credit card or net banking. please reply me
| Originally posted by :Guest | ||
| " | We have remitted TDS on Professional charges under 94I instead of 94J for the month of September 2008. But the Quarterly return filed correctly (it was showned in 94J itself). Is there any problem? Do we need to write any letter to IT Dept or remitting Bank (it is online remittance). Kindly provide the suggession at the earliest. | " |
| Originally posted by :Guest | ||
| " | We have remitted TDS on Professional charges under 94I instead of 94J for the month of September 2008. But the Quarterly return filed correctly (it was showned in 94J itself). Is there any problem? Do we need to write any letter to IT Dept or remitting Bank (it is online remittance). Kindly provide the suggession at the earliest. | " |
Sir
We have formed a farming company.
We hired J.C.B on daily basis for land development. Is T.D.S applicable. If so under sec 194 c or under Sec 194 I
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