Hi Experts !
Will be really grateful if someone can help in below query-
A person having freelancing income ( and covered under "professional" definition of 44 ADA), the income are 100% in foreign currency from US. The person would be taking 44ADA presumptive taxation benefits since he meets all criteria of 44ADA.
My queries are as under-
i) Which ITR form to be used ? ITR 4 or ITR 3 ? I was thinking ITR 4 but when I read complete instruction of ITR 4, it is written ITR 4 is not for those who have income from sources outside India. So should I go with ITR 3 since all income is coming from USA.
ii) Assuming I need to file ITR 3, then Part B - TTI 14th point is asking for "Do you at any time during the previous year :- have income from any source outside India? [applicable only in case of a resident] [Ensure Schedule FA is filled up if the answer is Yes ]*" If I select yes (which I think I should select), then I need to fill schedule FA as well, otherwise form is showing incomplete.
In schedule FA there are various section asking for foreign assets, which is this case does not apply since the person does not have any foreign assets but the last point of this schedule - "Point G- Details of any other income derived from any source outside India which is not included in,- (i) items A to F above and, (ii) income under the head business or profession". Do I need to give information in point G but since I have already included the same under head business or profession, I doubt should I enter here ?
After selecting yes of Part B - TTI 14th I have no choice but to fill the details in schedule FA but question is where and how ?
iii) Do I also need to fill FSI and TR schedule in-spite of no TDS is deducted on foreign income by foreign payer. If yes then how to calculate column d of FSI.
I know my query looks long and complicated but can anyone help, it is specially relevant for all persons doing freelancing work and earning from abroad.
CAclubindia
