Income from online affiliation work and revenue sharing arrangements.
In which head of Income does "Income from online works and from revenue sharing websites" can be shown.
Other sources or Business/Profession??
Moreover WHETHER RBI APPROVAL is required for starting a website of own on revenue sharing basis for selling space for advertisements, where mostly foreign customers would be involved??
Income Tax Act clearly says any venture in nature of business to be shown under business income. However venture in nature of business depends from case to case. If it is a one time affair, it can be shown under other source otherwise you can show it under business income.
RBI approval is not required, it is clear case of export of service. You need to follow normal service tax provisions.
Note: Reply based on limited information provided.