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Most freelancers record receipts at the rupee amount actually credited to their Indian bank. Rule 115 of the 1962 Rules also prescribes SBI telegraphic transfer buying rates for converting foreign income, so be consistent in the method you use.
ITR
Converting foreign currency receipts to rupees
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Provisions
Rule 115, Income-tax Rules 1962 (2026 Rules number to be confirmed); Sec 44ADA, Income-tax Act 1961 (now Sec 58, Income-tax Act 2025)
Analysis
Under the presumptive scheme, gross receipts in rupees are what matter. Example: you invoiced $40,000 during the year and your bank credited ₹33.4 lakh after conversion; using ₹33.4 lakh with bank proof is simple and checkable. If money is held abroad in a wallet before conversion, take advice on the rate and the reporting.
Close
- Download bank statements showing INR credits
- Collect FIRA or e-FIRA from the bank
- Total receipts in rupees
- Use the same method every year
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