If you make money using Adsense and are based in India, this question often gets arise that how much taxes you should pay ? whether the adsense earning is even taxable or not and what does the Indian Income tax department says about earnings from programs like adsense.

Well here is your answer - If you are earning money from foreign countries, then the earnings can have taxes and even double taxation (like tax on the country from where the money has come from, say USA and in India) but in Adsense case, it is only single taxation and the money is paid by google, so as an Indian making money from adsense, you don’t have to pay taxes.

Before filing your Income Tax returns make sure make sure you get all your earning sources right as lot of people get it wrong and pays taxes on the earnings, which probably they could had saved. You also want to clearly specify whether you are working on your own as self employed person or in a company of your own. The advantage of showing that that you are working in a company of your own is that you can file for deductions on various office related expense like furniture, electricity, employees salary etc.

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