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Amit patel (Programmer)     15 January 2011

Selling mobile adware games

Hi,

     I'm a student (from India). I developed a mobile game. This game displays ads to users when they play it (adware). I signed up with a ad-company & receive money at the end of each month from them via paypal.


     What kind of taxes do i have to pay now?

     Can i continue receiving revenues without registering for a business ID?

 

Thanks.



Learning

 6 Replies

A V Vishal (Advocate)     15 January 2011

It amounts to business income and you need to file your return if the gross receipts during the financial year exceeds 1.6 Lacs. Certain deductions may be claimed against such income. Further you need to apply for a PAN with Income Tax Deptt.

1 Like

Amit patel (Programmer)     15 January 2011

Thanks for the information.


 What about bussiness ID?

A V Vishal (Advocate)     15 January 2011

You can go for a business ID. Let me know the complete details about yourself to advise you properly

1 Like

Amit patel (Programmer)     16 January 2011

I'm a student & I would join a software company next year.

I'm not in a position to run my own business. If registering for business ID is not necessary, I will not go for it.

Is it ok to earn money like this in India with any registration?

 

It is more than 1.6 lacs. I have a PAN card & it is registered at paypal, so i think they can track my transactions. Where in mumbai I should go to pay my taxes?

I really appreciate your help.

Thank you very much.

A V Vishal (Advocate)     17 January 2011

If registering for business ID is not necessary, I will not go for it. Is it ok to earn money like this in India with any registration?

Yes you can go without registration of any Business ID.

It is more than 1.6 lacs. I have a PAN card & it is registered at paypal, so i think they can track my transactions.

Yes, your transactions are tracked, however, you may claim business deductions for the expenses incurred on developing, marketing and any other expenses incurred for the same. You need to pay Income tax after claiming all these expenses on the net amount which is usually called as the profit of your venture.

1 Like

Amit patel (Programmer)     17 January 2011

Thanks a lot.


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