Calculate Income Tax On Adsense Income
How to calculate Income Tax on Adsense Income – In India the only tax that is levied to Adsense income is the Income tax and that there is no other tax levied. Initially, service tax used to be levied on Adsense income but now it is no longer levied. So, no matter the amount of income one earns.
Income tax in India therefore is levied on Adsense income on a yearly basis i.e. on each financial year. A financial year in India runs from 1st April and ends on 31st March every year. All the income tax are accumulated and summed up to be announced by the Finance Minister when the budget is being read out.
Calculate Income Tax On Adsense Income In India –
The income that is finally received by the taxpayer normally undergoes a series of deductions of expenses and depreciation. There is no pre-set types of expenses that one can say that it will be deducted to determine your final income.
It is the final expenses that will be computed to enable you claim and some of them include hosting, telephone, internet, salary, domain and website development expenses. After the computation of total income, depreciation and revenue, the following is how to calculate Income tax on Adsense Income in India;
Expenses And Depreciation –
First, total taxable income is calculated which is the income that is subjected to tax by subtracting the total annual depreciation and total annual expenses from the total revenue of an individual. Depreciation is normally levied on those items that have lifetime of more than one year.
Depreciation is calculated by dividing the cost of the equipment by the determined number of years the equipment will be in use. After all the deductions are made, then income tax is computed based on the Income tax slab rates that are provided by the government on each and every financial year.
These rates however keep on changing e.g. that which is charged to small business is different from that of larger businesses. No income tax is paid by those individuals whose income comes below Rs 2,000,000. Furthermore he is not necessarily required to file his income tax return statement. This is all about how to calculate Income Tax on Adsense Income in India.