🧾 Reporting Income from Foreign Consulting Work – A Must-Know for Indian Taxpayers by Return Filings Via Flickr: 💼 Earning from clients overseas? If you're a resident of India, your global income—including income from foreign consulting or freelance work—is taxable in India. Make sure you're handling it right:
🔹 1. Report It in Your ITR Indian residents must declare foreign earnings under “Income from Business/Profession.” Use ITR-3 (actual profits) or ITR-4 (presumptive under Section 44ADA).
🔹 2. Convert Using the Right Exchange Rate Use SBI’s TTBR (Telegraphic Transfer Buying Rate) on the last day of the financial year to convert foreign income to INR.
🔹 3. Claim DTAA Benefits If tax is already deducted abroad, avoid double taxation by filing Form 67 and claiming Foreign Tax Credit under the DTAA.
🔹 4. Schedule FSI Compliance Report country-wise foreign income and taxes paid in Schedule FSI in your ITR.
💡 Don’t miss out on deductions and tax credits you’re eligible for. Proper disclosure ensures compliance and peace of mind.
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