Business Income of Foreign citizen in India

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This discussion addresses how a foreign citizen operating remotely in India and providing online astrology services should file their Income Tax Return (ITR). Since Section 44AD is not applicable to Non-Resident Indians (NRIs), the key question is whether they can declare income under the 'books not maintained' case or if a Profit & Loss statement and Balance Sheet are required. Experts suggest that if income is taxed in the home country, it may not be taxed in India; otherwise, it needs to be declared for assessment.

Priyanka

Priyanka (Querist)

31 October 2022 Dear Experts
One of my client is foreign citizen who provides astrology services in online platforms like astrotalk etc.
Tax has been deducted u/s 195
My question is as 44AD is not applicable to NRI
Can he show income as Books not maintained case ? mere gross receipts less deduction and profit in ITR 3 ?
or do he need to file P&L Balance sheet for the same
please guide
he completely operate from out of India remotely. so he doesn't have any expenditure here in india

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

31 October 2022 Such income is not taxable in India for non resident. File ITR and claim refund.

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

31 October 2022 Non residents not eligible...

For the purposes of the section 44AD,—

"(a) "eligible assessee" means,—
(i) an individual, Hindu undivided family or a partnership firm, who is a resident, but not a limited liability partnership firm as defined under clause (n) of sub-section (1) of section 2 of the Limited Liability Partnership Act, 2008 (6 of 2009); and
(ii) who has not claimed deduction under any of the sections 10A, 10AA, 10B, 10BA or deduction under any provisions of Chapter VIA under the heading "C. - Deductions in respect of certain incomes" in the relevant assessment year"

Priyanka

Priyanka (Querist)

01 November 2022 Dear Sir, yes 44AD not eligible
but then how should i show profits ? shall i show as books not maintained case ? or shall i maintained books of accounts ?
person doesn't have any expenditure in indian rupees

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

01 November 2022 If the income was taxed in the country of his origin, the same will not be taxed in India; otherwise you need to offer it for assessment in India.

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