Major source of revenue for a blogger in India comes from advertisement, affiliate sales and consulting services related to blogging. Incomes generated from all these services are chargeable to income tax based on the slab rates as applicable to a blogger for the financial year in which its generated.
A person can make his career in blogging by either working somewhere as a salaried employee or self employed with his own blog. Income Tax provisions for the first category of persons i.e. for employee will differ from the second category.
In this article we will be discussing applicability of Income Tax provisions for a person who is self employed or started blogging on his own. For those who are getting salary for their blogging work that they do for their employer will be liable to income tax as per the provisions that are applicable to a salary person.
Income tax return filling for a blogger
Most of these bloggers are getting their income either to a bank account or in some other form like to PayPal which ultimately transferred to blogger’s bank account.
If your transactions in a bank account are in excess of Rs. 25 lakhs per year and you have not filled your Income Tax return then you may get a tax notice as Income Tax department closely follow these financial transactions which are reported by your bank to Tax department every year.
Every year, before the end of due date, you need to file your income tax return in ITR4 if your income exceeds the basic exemption limit.
Due dates are based on your tax status. If you are self employed and generating revenue on your own name then your IT return filling due date is 31st July of the following financial year related to the year in which you have generated your income. However, if you are generating total revenue (i.e. gross receipt) of more than 25 lakhs then your accounts are required to be audited by a chartered accountant in practice and the due date of filling your Income Tax return will be shifted to 30th September.
You are also required to maintaining books of accounts if your receipt or incomes are more than Rs. 10, 00,000 or Rs. 1, 20,000 respectively in any three financial years preceding the current financial year.
If you have newly started your blog and expecting the income or gross receipt to be in excess of these limits then you are also required to maintain books of accounts as required in Income Tax act.
PAN Card for bloggers
You are not required to apply a separate PAN card for your blogging business. PAN card in your own name will fulfill the requirement if you are working as a blogger and your business has no separate legal existence.
In case you are doing business in your firm’s name or formed a company then you need to apply for a separate PAN card in the name of your business as in this case your business is registered and has a separate legal status.
Due date for payment of Tax
Tax provisions require you to pay your income tax liability before filling your Income Tax Return. If your total income tax liability is about to cross Rs. 10,000 then you are required to pay Tax in advance installments. Failure to do that will attract interest penalty @1% per month on your unpaid income tax amount.
Also Read: What is Advance tax in India
If you are getting more than Rs. 25 lakhs from your blogging business then we suggest you to form a private limited company by which your business will be organized. By forming a private limited company you will incur not more than Rs. 10, 000 every year compare to the present situation of doing business on your own name or in the name of partnership firm.