Most of us here started earnings on Xomba in decimals. But for those with discipline and plan there is no stopping from increasing this Adsense income to greater levels. One of our fellow Xombie has openly posted his/her earnings month to month.

So it shows that a rise in income from Adsense is a reality. Sooner or late it will hapen to all of those who have resolve and discipline. So it is in fitness of things to know and understand how the Indian Tax laws see Adsense income.

Like here in Xomba (or other blog), earning from Google’s AdSense program is to be treated as a new income head. As per Indian taxation laws Google AdSense earnings are taxable for all Indian residents.

So when you file your tax you have two heads under which this income can be shown. First head is Income from Business or Profession and the second head is Income from other sources. You can file under one of the above two heads.

You must choose the Business or Profession head if you maintain and use the blog on a regular basis.But if the earnings are low and blogging at Xomba (or elsewhere) is just a part time activity then it makes sense to show the income under the head Income from other sources

Well, showing income under Business or Profession has an advantage. You are allowed to claim all expenses related to earning the income as deductions. Thus expenses on telephones broadband connections and associated hardware, travel undertaken, advertisement, books/magazine subscriptions, staff salary, online & web design can be directly deducted from the earnings thereby reducing the net taxable income and consequently lowering your tax liability

File and keep all those counterfoils of cheques received from Google safely. (I value them. I have framed those :-) They may be required during scrutiny by Income Tax authorities. Nonetheless if you have misplaced the earnings cheque counterfoils need not worry. Just print the statement of earnings from your Google AdSense Account.

Also it should be understood that Google AdSense publishers (that is you) are not liable to pay any kind of service tax. That onus is on Google as it sells the advertising space to advertisers through Google AdWords program.

Well now you are ready to receive those $1000 checks! from Google - (per week !!)

Join Xomba Free. Write & Earn Money