Freelancer return with foreign clients, Sec 44ADA

Tax planning

Freelancer return with foreign clients, Sec 44ADA

What this means, checked by a CA

If you earn from foreign clients, your fees are taxable in India. Under Sec 44ADA you can pay tax on 50% of receipts without books. We convert receipts to rupees, check the form you need (ITR-4 or ITR-3), handle foreign accounts and tax credits, and file on time.

₹2,999

a year, + 18% GST

  • Delivered in 2 to 3 working days after receipts and FIRAs
  • Due: AY 2026-27: due 31 August 2026 for non-audit business and professional income (passed). Belated return up to 31 December 2026. Form 67 for foreign tax credit by the end of the assessment year (31 March 2027).

How we do it: IDFD

Every case runs through the same four steps: Information, Discussion, Forms, Deliverables. You see each one ticked as it happens.

InformationWhat we need from you · 8 items
  1. Invoices and client list

    Gross receipts for the year

  2. FIRA or bank inward remittance advices

    Proof and rupee value

  3. Platform statements (Payoneer, Wise, PayPal)

    Gross fees before charges

  4. Foreign account or wallet balancesOptional

    Schedule FA check

  5. Foreign tax withheld certificatesOptional

    Form 67 claim

  6. Form 26AS and AIS

    Indian client TDS, GST turnover

  7. Advance tax challansOptional

    Credit and interest

  8. GST registration and LUT, if anyOptional

    Matches AIS turnover

DiscussionWhat we discuss · 6 items
  1. Is your work a specified profession under Sec 44AA(1)?

    44ADA applies only to those

  2. What were gross receipts in rupees, and how much came in cash?

    ₹50 lakh or ₹75 lakh limit

  3. Do you hold money in a bank or wallet account outside India?

    Schedule FA means ITR-3

  4. Did any client country deduct tax?

    Form 67 and ITR-3 for credit

  5. Are actual expenses more than 50% of receipts?

    Books in ITR-3 may be cheaper

  6. Old or new regime, and was Form 10-IEA filed before the due date?

    Regime choice is time-bound

FormsForms we file · 5 items
  1. Convert each receipt to rupees at the SBI telegraphic transfer buying rate for the relevant date, gross of platform fees

    Gross receipts in rupees; e.g. USD 60,000 at ₹85 = ₹51,00,000

    Where: Internal. Due: Before filing

  2. Test 44ADA limit and compute presumptive income

    50% of ₹51,00,000 = ₹25,50,000 (limit ₹75 lakh applies if cash is within 5%). New regime FY 2025-26 tax ₹3,45,000 plus 4% cess = ₹3,58,800

    Where: Internal. Due: Before filing

  3. Choose the form: ITR-4 if no foreign assets or foreign tax credit; ITR-3 if Schedule FA or Form 67 is needed

    Where: Internal. Due: Before filing

  4. File Form 67 if claiming foreign tax credit

    Where: https://www.incometax.gov.in. Due: Before the return, and no later than the end of the assessment year

  5. Pay self-assessment tax with interest, file and e-verify

    Where: https://www.incometax.gov.in. Due: 31 August (passed for AY 2026-27); belated by 31 December 2026

DeliverablesWhat you get · 3 items
  1. Receipts register in rupees with FIRA match

    When: With filing

  2. ITR-4 or ITR-3 acknowledgement

    When: Same day

  3. Advance tax plan for the next year

    When: With filing

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+ 18% GST

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