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

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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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)
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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)
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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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