Answer

ITR

Freelancer with foreign clients using ITR-4

Updated . Every paid answer is checked by a CA. Free AI answers are labelled until a CA verifies them.

  1. Facts

    A freelance software developer providing technical services can usually use Sec 44ADA. Gross receipts are the invoice value converted to rupees, not the net amount after platform and bank fees.

  2. Provisions and law

    • Sec 44ADA (now Sec 58)Presumptive professional income at 50% of gross receipts
    • Sec 5, Income-tax Act 1961Scope of total income for residents includes worldwide income

  3. Analysis

    If you invoiced US$40,000 and the rupee value on receipt was ₹33,60,000, gross receipts are ₹33,60,000 even if Upwork fees cut what reached your bank. Income is 50%, ₹16,80,000. Use FIRA or bank advices for the rates. Foreign bank accounts or foreign assets would bar ITR-4, so check this.

  4. Conclusion

    1. List invoices and the rupee value received for each
    2. Use FIRA or bank advices as proof
    3. Declare 50% of gross receipts under 44ADA
    4. Check you have no foreign assets or accounts that require ITR-3

A Savvy can do this for you

Presumptive income tax return, ITR-4 (Sugam), Sec 58 (old 44AD, 44ADA, 44AE)

₹1,999

Get this doneAsk a Savvy on WhatsApp

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.

People also ask