Google Webmaster Tools Finally Offer Internal and External Links Recognition
After a long number of years GWT has confused webmasters with their ideas of internal and external links which we could take a glimpse on via two categories; links from within your site and links coming from other sites. This was confusing for most, especially since GWT didn’t do quite a good job of separating our real internal links from external. In some cases we could see internal links as external, subdomains were a great example of that. Now GWT will start showing real internal and external links.
GWT now follows the logic of their search engine for internal links, one domain to rule them all. In other words GWT will count links from both www version and non www version of your website as internal, and any subdomain or subfolder under that domain will be treated as an internal link, the exception being when you don’t own the domain, like on blogspot or hubpages, in which case only links after your subdomain will be counted as internal and all other will be seen as external links.
A note to all webmasters, Google clearly said in their post that you may see a decrease in the total number of external links, since links from both www and non www version will be seen as the internal links.
1. Recognizing internal vs external backlinks - http://googlewebmastercentral.blogspot.com/2011/08/reorganizing-internal-vs-external.html