ITR
Foreign income not shown in AIS
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Facts
Yes. As a resident you must report worldwide income whether or not it appears in AIS. Banks and other reporting entities may report foreign remittances, so gaps between your return and their data can trigger questions.
Provisions and law
- Sec 5, Income-tax Act 1961A resident is taxed on worldwide income; a non-resident only on income received or arising in India (2025 Act number to be confirmed)
- Sec 44ADA, Income-tax Act 1961 (now Sec 58, Income-tax Act 2025)Resident professionals with receipts up to ₹50 lakh (₹75 lakh if cash receipts are within 5%) can declare 50% of receipts as income
Analysis
AIS mostly shows Indian TDS and reported transactions. Example: ₹18 lakh received from abroad does not appear in AIS, and the freelancer files a return showing only ₹2 lakh of interest. Large credits in the bank account can later lead to an inquiry. Report the full receipts under Sec 44ADA.
Conclusion
- Total all foreign receipts from bank statements
- Report them in the return
- Keep FIRA and invoices
- Respond promptly if asked about credits
A Savvy can do this for you
Freelancer return with foreign clients, Sec 44ADA
₹2,999
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