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I am selling goods (retail) on ebay.com (retail export)

Tauseef (Self Employed) (69 Points)

14 April 2017

I am selling goods (retail) on ebay.com and money transferred into paypal in dollar and paypal deducted their charges and transfer to my bank account with current exchange rate.

I want to know the which type of income is this ?

1. Foreign Income

2. Indian Income

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10 Replies

karan (CA) (50 Points)
Replied 14 April 2017

This is your income and you have to pay tax in india.

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Tauseef (Self Employed) (69 Points)
Replied 14 April 2017

I am asking which type of income ? I know very well this is income.

Sumeet (CA) (537 Points)
Replied 14 April 2017

Income Tax Act 1961 doesn't bifurcate your income as Foreign Income or Indian Income. The Act Bifurcate you as Resident & Non Resident

Sumeet (CA) (537 Points)
Replied 14 April 2017

Since you are Resident Indian, full income will be taxable as your business income

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Tauseef (Self Employed) (69 Points)
Replied 15 April 2017

If i fill itr 3 i.e. new itr form from fy 2016-17 i need to mention FA schedule if it is foreign income. So clarify if it is foreign income. Otherwise i can fill itr 4 sugam.

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Sumeet (CA) (537 Points)
Replied 15 April 2017

In my opinion schedule FA will not be applicable in your case, as it mainly covers disclosure of foreign assets held by a resident Indian and income derived out of such foreign assets. Another schedule that covers foreign Income disclosure is Schedule FSA where you need to disclose foreign Income earned during the year bifurcated in 5 heads separately. Since your primary place of conducting business is in India, also you are receiving money in India the income cannot be said to be earned abroad. Hence in my opinion schedule FSA is also not applicable. So you can file ITR 4 also if your business income is not less than 8% of gross receipts. Let's wait for some other opinion too.

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Tauseef (Self Employed) (69 Points)
Replied 15 April 2017

It mean income from export business from india is not foreign income.

Sumeet (CA) (537 Points)
Replied 15 April 2017

As per my interpretation, for resident individuals it will be business income arising in India, hence cannot said to be foreign income.

Sumeet (CA) (537 Points)
Replied 15 April 2017

Please refer following article for more clarity on the issue https://www.moneycontrol.com/news/business/personal-finance-business/understanding-foreign-incomea-resident-tax-payer-1518265.H T M L