Need Expert Advice?Our Gurus Can Help

Freelancer in India with foreign income: Confused about tax refiling

T S Khurana |382 Answers |Ask -Follow

Tax Expert - Answered on Feb 26, 2025

A certified management accountant since 1993, T S Khurana is a fellow member of The Institute of Cost Accountants of India. His areas of expertise are income tax, specifically litigation cases, and GST.

Since the last 21 years, he has also been providing expert advice on financial matters, including investments and diversification of funds, and wealth building in the long term to his clients.
He believes that investment in real estate is the safest way for better returns and wealth generation over a period of time.

A former chairman of the Chandigarh Chapter of Institute of Cost Accountants of India, T S Khurana has also served as member of its technical committee.... more

Question by Ashish on Dec 23, 2024Hindi

I am a freelancer based in India and earn through Upwork. Recently, the Income Tax Department has requested individuals with foreign income to refile their income tax returns. I already pay TDS and GST on my earnings and am trying to understand why refiling is necessary. I have already filed my returns and even received a tax refund. The TDS being deducted by Upwork is under the head 194O (which is for registered e-commerce operators in India). Also, I am getting the amount after its converted to INR. How does this make it a foreign income? Do I have to refile my Income tax?

Ans: 01. IT Department has every right to request you to Refile your ITR, when ever they have a doubt that some income has escaped assessment (may be Indian/ foreign income).
02. Please check your ITR to ensure that no income has been missed while filling your ITR, including Income from foreign but received in India after its conversion.
03. When you are taking care of all legal & tax provisions (GST, TDS, I.Tax & receiving money after conversion in a legal way etc.), there is nothing to bother & Re-file your ITR.
Most welcome for any further clarifications. Thanks.

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.

MoneyReply

You may like to see similar questions and answers below

Mihir Tanna |1019 Answers |Ask -Follow

Tax Expert - Answered on Aug 23, 2022

Question by Dipak - Aug 23, 2022Hindi

My daughter is in the UK for the last one year and likely to continue his stay on an employment visa. Thus she becomes an NRI while filing tax returns in India. She does not have a salary income in India. Her earnings are from savings bank interest and fixed deposits. Total income is less than Rs 2.5 lakh in India. Is she required to file an IT return in India to get an IT refund (TDS amount FD)? What is the procedure?

Ans: As mentioned in my article, if she is not satisfying other conditions of filing Income Tax Return and if the total TDS is less than Rs. 25,000 then she is not required to file Income Tax Return. However, if she wants to claim refund of TDS for FY 2022-23, she will be required to file Income Tax Return at www.incometax.gov.in (external link).

Money

T S Khurana |382 Answers |Ask -Follow

Tax Expert - Answered on Dec 03, 2024