How Bloggers Can Pay Income Tax Online in India
Today’s hectic lifestyle is a hallmark of the twenty-first century. It is easy to lose sight of our most important civic duty, filing taxes. It is true as we have to be on the go all the time to meet other responsibilities. For example, jobs, household duties, movies or exploring new restaurants.
You can file your tax returns online in this digital era. The days of waiting in line and taking time out of a hectic schedule to pay your taxes in person are over. Electronic filing and e-payment of income taxes have simplified the procedure. So now, you have no justification for not paying your tax.
Here, we’ll go over the steps for Indian bloggers to file and pay income tax online.
How Can Bloggers Pay Income Tax Online in India?
If you are a blogger, follow these steps to pay income tax online:
- Visit www.incometaxindia.gov.in.
- You’ll see a link labelled “e-Pay taxes” after logging in.
- You’ll be taken to the National Securities Depository Ltd when you click that link.
- You can pick challan no /ITNS 280 followed by (0021) Income tax (other than corporations).
- Fill in information like your name, address, e-mail, PAN and phone number.
- Pick the assessment year that corresponds with the payment you’re making.
- In the assessment year, you can choose “(300) Self-Assessment Tax” as the “method of payment”.
- Select the desired banking option from the drop-down menu.
- The next step is to input the “tax payable amount.”
- When you make a payment, a challan will pop up on your screen. It will have your CIN and payment details, as well as the name of the bank you used to make the transaction.
You’ve now successfully paid your taxes as a blogger.
Is Blogging Income a Business Income or Professional Income?
Some level of experience is always required while writing a blog.
A doctor is ideal for writing on the topic of medicine and health care. Articles on tax and accounting are within the purview of a Chartered Accountant. An athlete has the ability to articulate complex ideas in detail, such as in sporting events.
Thus, providing an excellent blog necessitates some amount of professional talent and experience. In light of this, we believe that blog income should be reported as business income.
Tax Implication for Bloggers
It is obvious that blog income cannot be reported under one of the five income categories in the Income Tax Act. So, the revenue will be treated as if it were obtained through a business or profession.
Income from Business/Profession
The Income Tax Act states that taxpayers pay taxes on net profits or losses from their businesses.
Allowed Expenses for Bloggers
Blog income will be taxable as company income, allowing certain costs to be deducted. After deducting these costs, the remaining income will be subject to taxation. Some examples of acceptable outlays are as follows:
- Hosting fees for a domain
- Payments for essentials like water, gas, electricity and telephone
- Staff compensation
- Freelance payments
- Convenience charges
- Costs incurred for the generation of any other form of income
Legitimate costs are those that directly contribute to making money. To generate income, the company’s spending must serve a useful purpose. To back up claims of money spent, the blogger must keep all relevant bills and receipts.
Depreciation for Bloggers
The blogger must invest in tools essential to the success of his enterprise.
It is not possible to write off capital expenditures in the year they are incurred. For example computers, furniture and office equipment. Assets’ prices should be amortised over their expected useful lives. Depreciation is the spreading out of an asset’s initial cost over its useful lifetime. Net income might include depreciation costs, which can be subtracted from revenue.
Investments for Bloggers
Bloggers can reduce their taxable income by investing their money in tax-deferred vehicles. Tax relief can be obtained by making these investments, thanks to Section 80C of the Income Tax Act. The Income Tax Act limits the deduction amount that can be claimed for investments.
You’ll need a few documents to file your salary-based income tax return online. Documents required for e-filing taxes are:
- PAN Card
- Aadhaar Number
- Form 16
- Statement of gross pay, net pay, standard deductions, as well as any allowances or bonuses.
- Form 26AS
- Housing rental payments in the event of an HRA allowance. In India, figuring out the HRA amount you are eligible for is as simple as using an HRA calculator.
In addition, you’ll need the following documents to seek deduction while filling out your ITR online:
- Certificates of deposit from your checking and savings accounts.
- Proof of house property income
- Proof of capital gains income from the sale of assets
- Proof of payment for loans
- Proof of any tax-deductible investments
Importance of Filing Income Tax Returns
Filing tax returns is a legal need for all citizens with income above the threshold in India. It is irrelevant whether you file your income tax return manually or electronically. Filing tax returns is required for individuals whose income is taxable.
Income tax returns are typically due at the end of July (31st) each year. Penalties will be imposed for failure to meet this deadline.
It is crucial to submit IT returns on time, since a late payment may affect your eligibility for a visa or a loan.
It’s also possible that someone will file a suit against you. A conviction for tax evasion in India carries a sentence of at least three years and a maximum of seven years in prison.
Avoid these problems by making timely tax payments. Easy and convenient, e-filing your tax return and even making TDS payments online is now possible.
Bloggers also have to pay taxes. This article highlighted every step to pay income tax online as a blogger.
Income tax e-payment is necessary, and putting it off until the last minute will only stress you out in the long run. Thus, gather all your documents, and finish this process as quickly as possible.
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