I have income of around Rs 2 lac from a webiste which I run. Which ITR form do I need to choose? Also I have done some expenses on my website (hosting etc) can I deduct this from the income of website for the purpose of tax calculation?
2 Answers
Income earned from running website can never be shown as Income from other Sources as only those Incomes can be covered under this head which are not covered under the other 4 heads.
Income earned from website will be always be shown under Income from Business and Profession
If this website income is just a small portion of your income (you have substantial income from salaries too), then you can consider filing ITR1 and declare this website income (after expense deduction) in income from other sources.
But if this is your main source of income, you should consider filing ITR4 (income from business/profession). In that case you will have to maintain profit-loss accounts for it. You can deduct all expenses done for business (hosting, domain name, computer/software purchase, internet/telephone bills etc)
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