Indian income tax for internet based earners (adsense etc.)

With the upcoming income tax return filing in India, it would be good for Indian domainers, web developers, internet based freelancers and internet based earners to discuss their Tax related questions.

My questions:

1. If domaining and web development is your sole business as an individual what types of taxes do you have to pay if you are above the Income Tax Threshold of say Rs. 150,000?

2. How long have you been paying taxes to the Indian government for your domaining and internet based earnings?

3. Is a personal paypal account monitored or governed by any rules of the Indian government agencies for transactions? Like, you need to produce your PAN number when depositing more than Rs. 50,000 in a Bank account in India.

4. Do you go to a Chartered Accountant for help on filing your tax returns?

5. Are there any Laws or provisions in the Law made specifically for income earned through the internet in India?

6. What expenses can you claim in Tax filings if you are an individual having a domaining and web development business?

7. What documents / receipts / statements etc., are most important for filing tax returns for internet based earners.

Thanks!