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ITR

Freelancer with foreign clients using ITR-4

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Find

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.

Provisions

Sec 44ADA (now Sec 58); Sec 5, Income-tax Act 1961

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.

Close

  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

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Connect nowPay and start: Presumptive income tax return, ITR-4 (Sugam), Sec 58 (old 44AD, 44ADA, 44AE), ₹1,999

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