as you are receiving the income at india for working at india, you will file IT return as per Indian IT law for income from business / profession upon deducting allowable expenses. you will get extra benefit for fetching foreign currency. you should deposit advance tax as per your receiving.
Taxation of foreign earnings in India
I am an independent contractor for a US company working from India. I get paid every week by transfer of USD to my Indian Bank account. Conversion to INR happens the day on which credit is received from US. They don't deduct any TDS. Question 1 :: Should i declare this as income from business/profession in India and pay tax? Question 2 :: From the gross income received ,can I deduct expenses paid in India (like depreciation on laptop, electricity, stationery, etc.) ?
Asked 6 years ago in Taxation
8 Answers
The earnings are from a USA based company. As you are a citizen of India the income is taxable and hence taxes should be paid after deductions.
Regards
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Taxation of foreign earnings in India
all income which is received in India or earned in India is taxable
maximum deduction of up to Rs 1.5 lakhs is allowed under Section 80C from gross total income for an individual.
yes if the company is outside india but part of operation is carried from india then you will be liable to pay tax in india
1. Yes, since this is an income earned out of your professional services, you may have to reflect the same in your ITR and pay appropriate taxes.
2..
The expenses incurred towards your profession and the services in all the aspects may be deducted from the gross income and can show the net income as the actual income for the purpose of income tax.
1. Yes
2. Yes, but you would need proper receipt for the same.
1. yes you should
2. Yes you can
For a concrete advise please get in touch with some experienced CA.
Regards
1. Tax is applicable if business income then you can seek depreciation in professional income depreciation is not applicable.
