Demand cut from ₹10,050 to ₹1,310
TaxSavvy for foreign client income tax
Paid in dollars? Tax, GST and FEMA, sorted.
We set up LUT, FIRA proof and Sec 58 (old 44ADA) filing.
If you wait: Registered and exporting without LUT: IGST is payable upfront (IGST Sec 16(3))
How we get it done
Four steps, the same for every job. You see each one ticked.
Information
Only the documents this job needs. Upload once, or send on WhatsApp.
Discussion
The few questions that change the answer, asked once, yes or no.
Forms
We prepare and file. You stay in the loop for every OTP.
Deliverables
The filing, the acknowledgement and a written answer in FPAC.
See what you get, free
Real formats, made with dummy data.
Sample Sample ₹5.7 lakh still to come in
Sample 2 receipts, ₹3.2 lakh, have no invoice
Questions, answered the CA way
Facts, Provisions and law, Analysis, Conclusion.
Freelancer with Foreign Clients: Tax, GST, and FEMA Complete
- Facts
- India-based freelancer earning from US/UK/UAE clients: three compliance layers. Income Tax: declare foreign income, pay at slab rate. GST: export of services = zero-rated, but registration needed. FEMA: receive payment in USD via AD bank, convert within stipulated time. Get all three wrong and you have an IT notice, a GST notice, and an RBI violation.
- Provisions and law
- Sec 58 (old 44ADA); GST, Zero Rated Export; FEMA, EEFC; Sec 393 (old 195), No TDS
- Analysis
- GST myth: Many freelancers think they must charge 18% GST to foreign clients. Wrong. Export of services = zero-rated. Charge 0% GST. File LUT (Letter of Undertaking) once per year on GST portal. No GST collected from foreign client. No refund to claim. FEMA receipt deadline: Invoice raised March 1: payment must reach India by November 30 (9 months). If client delays: apply to RBI for extension. Funds beyond 9 months without RBI approval = FEMA violation. Currency conversion timing: Income recognized when received (not invoiced). Use RBI rate on date of receipt. If received in EEFC account: recognized when converted to INR. Keep EEFC account if you have USD expenses (cheaper than converting both ways). The new regime advantage for freelancers: Foreign income ₹30L → Sec 58, Income-tax Act 2025 (old Sec 44ADA): ₹15L taxable → new regime tax ≈ ₹2.1L. Old regime with Sec 123 (old Sec 80C): ₹13.5L taxable → tax ≈ ₹2.5L.
- Conclusion
- Determine if profession is in Sec 58 (old Sec 44ADA) specified list (IT, consultant, designer, generally yes)
- Open EEFC account at your bank for direct foreign currency receipt
- File LUT (Letter of Undertaking) on GST portal before raising first foreign invoice
- Raise invoice in USD to foreign client, zero GST charged
Invoicing foreign clients: Upwork, Fiverr, direct: FIRC and proof of export
- Facts
- When you receive money from a foreign client, you need proof that it was for export of service, not just a random foreign transfer (which could attract Sec 102, Income-tax Act 2025 (old Sec 68) scrutiny).
- Provisions and law
- FEMA 1999 | RBI ECB Guidelines | GST, export documentation
- Analysis
- FIRC (Foreign Inward Remittance Certificate): Your Indian bank issues this when foreign currency is credited. Contains: sender's name/country, amount, currency, purpose code. Get FIRC for every payment. Bank usually offers e-FIRC on request. Upwork/Fiverr: These platforms pay from their international entities. Get the payment breakdown showing client name, project, and amount. Platform 1099/earnings reports are useful. FIRC from your bank when money hits account. Documentation stack for every foreign payment: Invoice to client → platform earnings report → FIRC from bank → bank statement showing credit.
HUF as landlord: rental income and property tax strategy
- Facts
- If HUF owns a property (ancestral or purchased from HUF funds), all rental income belongs to HUF, taxed at HUF's slab rate. The HUF can also claim the ₹2L home loan interest deduction under Sec 22, Income-tax Act 2025 (old Sec 24) on the let-out property.
- Provisions and law
- Income Tax Act 1961, Sec 22-27 | Sec 24 (₹2L interest deduction)
- Analysis
- A high-earning individual (30% slab) who shifts rental income into HUF effectively pays 5% tax on the first ₹3.5L of rental income instead of 30%. Annual saving: ₹87,500 on ₹3.5L rental income alone.
Agricultural income: why it's exempt from income tax and how it interacts with other income
- Facts
- Agricultural income is exempt from income tax under Sec 11, Income-tax Act 2025 (old Sec 10(1)). But the exemption is not absolute, it affects the tax rate applicable to your other income.
- Provisions and law
- IT Act, Sec 11 (old 10(1)) | Sec 2(1A) | Agricultural income definition
- Analysis
- Partial integration rule: If you have both agricultural income above ₹5,000 AND non-agricultural income above the basic exemption, agricultural income is added to compute tax on total income, then subtracted. The effect is that agricultural income is taxed at the marginal rate that applies to your total income, effectively reducing the benefit of agricultural exemption for high earners. Example: ₹3L agricultural income + ₹8L other income. Without integration: ₹8L is taxed at relevant slabs. With integration: ₹11L total determines the rate, then tax on ₹3L (agricultural notional) is subtracted. Net effect: other income is taxed at higher rates due to agricultural income pushing the slab up. What is "agricultural income": Rent/revenue from agricultural land. Income from agriculture (growing crops). Income from a farmhouse (if basic conditions met). Nursery income.
Paid in dollars? Tax, GST and FEMA, sorted.
A Chartered Accountant handles it. Fixed price, told before you pay.
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