I am a CSE student in a college Andhra Pradesh, India. My friend and I have created a web application to automate hostel payments with which students can pay their bills monthly. We use the PayTM web payment gateway and my SBI account is active for this so every payment will be credited to my account.
The bill payment process is:
- Student payments are credited to my account
- I will go to hostel department and pay their bill (with a debit from the same above SBI account).
- The receipts will be given back to the paid user.
College strength is : 1000
Average bill is: Rs.2400
Our service charge is: Rs.20
Let's assume that 500 people pay their bills each month with our service and that the amount of money credited to my account will be 12 lakhs and the profit will be Rs. 10,000.
My problem is that I don't know anything about tax regulations in India. Will I face any tax issues from the government?