@surjithctly, When it comes to deductions, nothing changes while filing income tax in India - it will be same as what we did in the past.
With the addition of withholding tax, we can't simply report our withdrawal amount as gross income. We should declare the 80% cost of items sold as gross income (which is higher than what we withdraw), then report the US withholding tax as deduction, then report the author fee as deduction. Being virtual deductions (without real transactions) we may have tough time convincing the tax authorities if they can't grasp these things. The marketplace statement page reflects these things well but if someone looks deeply to the item page and looks purchase price of items, there are possibilities of confusion.