How are taxes calculated in India on YouTube earnings (AdSense earnings)? What exemptions are allowed?

Its not very complicated. Unless you’re earning big, you can manage it yourself.

Nature of Income - Business income.

Gross income - Total amount of money received from Youtube.If its is the only income you earn and your gross receipts from Youtube are less than Rs. 2 crores (which is your case), you just need to pay tax on 8% (minimum, can be higher if you want to) of the receipts.Tax = Total Receipts x 8%( minimum) x Tax rate applicable Note: It has been reduced to 6% for the Financial Year 2017–18.

Schedule of Tax rate applicable:

If you are earning more than 2 crores:Here, you have to maintain books which is required to be audited by a chartered accountant. This is where you would need services of a Chartered accountant.Here’s a short summary of how your profit would be determined.

Gross Income: Total receipts from Youtube.

Expenses allowed :1.Revenue Expenses : These expenses are allowed on full amount.Anything incurred for making videos & uploading it - Eg. Internet Bill, Electricity Bill, Computer/Camera repair and maintenance, etc Other costs - Promotion expenses or any other expense you incur to make and upload videos.2. Capital Expenditure: These expenses cannot be set off fully against income.Camera - 15% of the cost of camera can be set off each year on deducing balance method.Computer- 60% of the cost of camera can be set off each year on deducing balance method.Other Assets - As per rate specified in the Income Tax Act, 1961.You would be taxed as a sole proprietor unless you register your business as a company/ LLP/ Partnership Firm.

Compliances:You will have to file Income Tax return till 31st July, 2017.If you have any other source of income, that would be treated differently based on its nature.no in parked indirect taxes are charged on Youtube adsense money as of yet.

Income Tax on Adsense Income

Firstly, it is important to note that only Income Tax is levied on Adsense Income in India and no other tax like Service Tax, VAT, GST, Excise Duty etc is levied on Adsense Income. Earlier, Service Tax was levied on Adsense Income but now No Service Tax is levied on Adsense Income. Irrespective of how much you earn, Service Tax won’t be levied on Adsense Income in India.You can continue reading from the original source

You have to pay tax on what ever you earn from Youtube. You won’t get any exemption but you can deduct expenses incurred for earning income from Youtube. e.g. Your internet bill, computer maintenance expenses, telephone bill etc.You will have to pay tax on your profits after deducting the expenses.I suggest you should visit a chartered accountant with full details for better advice.