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  • Category: Tax Planning

    Is the income from online part time job taxable?

    Are you wondering if online income is taxable? Looking out for advice from financial experts to know whether it needs to be declared and under which section? Find answers for your queries here.

    I would like to know whether the income earned from online jobs are taxable and need to be declared while filing returns?
    To give an example, the income earned from this site IndiaStudyChannel or from online survey jobs which are part-time or a kind of hobby.
    If it needs to be declared, what are the rules for it and under which section it should be declared?
  • Answers

    9 Answers found.
  • All earning are taxable as long as you have linked it to PAN card. Government can easily check your balance from transactions on your account. So winnings like in online or earning are taxable and will come under Income from Other Sources. While calculating the income on which tax is to be paid, the total of all Incomes earned by a online blogging are to be taken into account. You are requested to note that Income Tax is not payable on the Total Revenue earned but is payable on the Total Income earned. Now since you are not salaried and earning depends on online revenue you will have to check which ITR you will have to file. But you can show standard deduction as well as business expenses in order to stay in your online earning.

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  • Any income you are getting from job or service or business is to be declared for your income tax. For the job holders, the employer will deduct the TDS and pay to the IT department and will give the employee Form 16.
    If the income is from your other works like consultancy or other similar works also the payer will deduct 10% of the payment as TDS and they will provide you Form 16A.
    For online works, we will not be getting any from 16 or Form 16A. So such income you have to show in your IT returns as other income or income for other sources. For showing this there is a column in the ITR also. Otherwise, you will be a tax defaulter and you will be liable to be punished.
    The amounts you are getting for consultancy works and online works need not be considered as fully your profit. To conduct those works you may be having some expenses and incidental expenses. So certain percentage of that income can be deducted from the income before completely finalising your income. As far as my knowledge goes you can claim up to 49% of the income as expenses. But if the income in this category is high, it is better to go to a tax consultant to finalise your ITR.
    The income what you are getting from online sites like ISC and the income getting through online surveys is also taxable and you have to pay tax.

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  • Theoretically speaking, every income is taxable under the Income Tax provisions. Only difference is that different incomes are treated differently as far as the exemptions and tax rates are considered

    For example, income from agriculture is 100% tax free. Income from long term capital gains is reduced as per the price index of the years and taxed at a different rate then the usual rate on salary income as per the slab. Rent income from house is reduced by allowable 30% for maintenance. Short term capital gain is taxed at a different rate.

    So depending upon the source of income they are treated separately.

    Then there are other incomes which are simply added to the total income and taxed according to the slab. Online earning is also one such income.

    So, if a person is having income from various sources each will be treated as per the I T provisions and taxed accordingly.

    If the total taxable income is below Rs 2.5 lakh then as per the present provisions there is no tax. So, even after adding the online income if total is below the above limit then there is no tax on it.

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  • The tax on online income will depend on the total income of the person. There are many tax benefits for specific savings and investments.

    So if a person is having an yearly income of Rs 3.2 lakhs (which includes income from online work) and he is able to save Rs 90000 out of this in specified schemes then his taxable income will be 320000-90000=210000 which is less than the limit of Rs 2.5 lakh and hence there will be no income tax for him.

    So depending upon the total income and savings for tax benefit made, his tax will be calculated.

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  • Income from online jobs are taxable. Few incomes are there for which there are certain exemptions, under different sections, like inherited income from HUF, interest from savings account, income from EPFs, income from scholarships, etc.

    However in most of the cases, if your total income exceeds Rs. 2.5 Lacs, for the financial year 2018-19, you have to pay taxes.

    If you are already in a service, then while filing IT return, show the income from online jobs under the column income from other sources.

    If in business, choose the required IT return form and include the amount of income from online jobs to compute the total income.


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  • Almost all form of income taxable and income earned from online is also taxable. Earning generated from youtube, website, indiastudychannel is taxable. Non-taxable income would not be taxed whether or not you enter it on your tax return. These are the items which are deemed non taxable : gifts, bequests and inheritances. There is a thing if you have recieved more than $10000 as a gift then you may have to pay federal gift taxes. Any life insurance proceeds you recieve is also free from income tax. Health insurance which is paid to employers is not taxable. Salary of MPs and MLAs are also taxable but only salaries not other.
    These are the rates at which tax will be calculated for the year 2017-18 : For an individual who is less then 60 years of age. Total taxable income upto Rs 2.5 lakhs : No tax is charged.
    Rs 2.5 lakh - Rs 5 lakh : 10% of the amount exceeding Rs 2.5 lakh is charged.

  • Online earnings from sites like ISC, blogging, advertisement, adsense etc are treated as income as far as the tax authorities are concerned (except honorary work without any income). In simple terms this fixed or variable money that comes into any account in our name or joint accounts would be tracked by the IT department.

    The earnings that you get from all the online activities should be clubbed under Gross Income under the others section of the ITR
    (ISC + Google adsense + online suverys, online blogs, personal site etc).

    From this gross amount you can have deductions in part for example
    depreciation of your laptop or desktop, camera,
    internet expenses, telephone bill, electricity expenses and other day to day expenditure that you incur while you earn online.
    If you have a sizeable earnings from online means and have an office, a few staff etc, you can list these expenses also.
    If you are a professional blogger and some money on contracts, registration fees for other sites or even meet a potential client related to the online business, even this can be used for tax exemption. The amount of deduction/depreciation varies and is also influenced on other earnings and the slab under which you come under. It is better to at least once consult a tax consultant.
    domain hosting, patent charges, website designing all can be shown as expenses.

    Now for every financial year, you can deduct these from the gross amount and the remain can still be checked whether it can be offset by an unused quota of investment/donation and other exemptions. So, any money rupees or dollars or pounds that trickles into your account needs to be treated as taxable income and declared to avoid potential issues.

  • Income from online jobs is treated as sundry/miscellaneous income. Unlike agricultural income, income from online jobs is taxable. For the purpose of income tax return, sundry/miscellaneous income should be shown against Column B3 (Income from Other Sources) of the ITR-1 form (applicable for persons with annual income of less than Rs. 50 lakh and have rental income from only one property).

    "If you are killed in action, you go to Heaven. If you win, you rule this Earth (as beautiful as Heaven). That is why, O son of Kunti, take a firm resolve and fight!"-- Shrimad Bhagwad Gita

  • Taxability of income is dependent upon two factors i.e. place of earning/accrual and where the income is received.
    It is not important from what source the income is received but the taxability of income is dependent upon the following summary, which will clear this doubt regarding taxability of any income and from any source.

    1. Income received in India - Earned/accrued in India - Taxable in India
    2. Income received outside India - Earned/accrued in India - Taxable in India.
    3. Income earned/accrued in India - Received outside India - Taxable in India
    4. Income received outside India - Earned/accrued outside India - Exempt in India.

    Now you must verify your receipt and earning/accrual from above four conditions and in most cases it will fall in first three, no matter what kind of income it is. Online income, Salary income, House property Income, Business income, Capital gain, Interest, lottery, betting, other sources, etc.

    Follow the thumb rule as given above and no more confusion will be there for taxability of any kind of income.

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