Online income is taxed as business or professional income; GST and TDS may apply; claim eligible business expenses for deductions.
This infographic covers taxation rules for online side income in India. Income from freelancing, affiliate marketing, or e-commerce is classified as business or professional income. Small businesses with turnover up to ₹2 crore can opt for presumptive taxation under Section 44AD. GST registration is mandatory if revenue exceeds ₹20 lakh (₹10 lakh in some states), and TDS may be deducted by platforms or clients. Deduct eligible expenses like internet, software, and marketing costs to reduce tax liability. Maintain proper documentation for all business-related expenses.