Blogging part time is hobby of many salaried Employees of MNC, PSU, private sector and Government bodies but do you know that, if your part time earning is contributing to your net total income, then you have to pay income tax on your blogging income too. Many part time bloggers are earning handsome amount of money with blogging but are the really paying the income tax? Income tax department has made income tax submitting process very simple and you can easily file your return online by just feeling a ITR form which are available on Income Tax department website for free and are different for different category depending upon source of income.
As closing of financial year i.e.31st March is near so this post gonna help you lot in efiling your return, if you are a full time employee doing blogging part time.
Who is Salaried Blogger?
Any individual, who is earning part time from blogging and also has a full time job in hand is called a Salaried blogger. Don’t confuse this with people who are working full time as content writers and are paid accordingly.
What is Financial & Assessment Year?
Financial year (FY) and Assessment year (AY) are the two most confusing terms for every newbie learning about Income Tax. So before going forward and know about every thing else, every one should know about FY and AY.
In simple terms Financial year or FY is any year in which an individual, person or group of people has earned their income. Financial year period is calculated from 1st of April of present year to 31st of March of next year.
For Example: Income of Financial year 2012-2013 will be counted from 1st April 2012 to 31st March 2013. And earning during this period will decide your income tax.
Whereas a Assessment year or AY is the year in which you file your returns for the Income earned for the financial year, which had just ended. So if you have filed your return for Financial Year 2012-13, then your Assessment year will be AY 2013-14.
Which ITR form to Choose while eFiling your Income Tax Return?
Many bloggers are confused as which form to choose while filing the return. If you are only salaried employee, then ITR1 form is for you but if you are salaried blogger then I will suggest you to use ITR2 form instead of ITR1. And if you are a full-time blogger then ITR 4 is the right choice for you.
How to E-file Income Tax Return for Salaried Blogger
If you have decided that your part-time blogging is contributing a good part to your net income and has decided to file an income tax return this Financial year, then the first step would be to download ITR2 form from Income Tax efiling website.
Checklist of documents and pre-requisites before Filing the Return
1. Copy of last year’s tax return (Ignore if you are filing Tax 1st time).
2. Bank Statement, Google Adsense statement and other any other income proof which you have earned through blogging.
3. TDS certificates/Form 16 from employer.
4. Savings certificates/Deductions (For rebate in tax).
5. Interest statement showing interest paid to you throughout the year.
6. Balance Sheet, P&L Account Statement and other Audit Reports wherever applicable.
When you have collected all the necessary document, just start filing your ITR2 form as shown in the below video, which we have specially created for you. Note down that fields highlighted with RED are compulsory.
If you still have any problem in eFiling your income tax return, please feel free to leave your comment. If you like our article don’t forget to share it on your social network as someone may be need of information.
Pawan Bahuguna is an Engineer and a blogger, who loves to write about Technology, Blogging, SEO, Monetization, Affiliate marketing, WordPress, Software's, Tips & Tricks, etc. in his free time. Do connect with him on the popular social networking website.