Income earned by professionals from outside india

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If you're an IT professional earning income from outside India, you must disclose this foreign income under 'business and professional income' in your ITR-3, regardless of its source. While disclosing it in Schedule FSI is only mandatory if you wish to claim relief on taxes already paid abroad, failure to declare foreign income could lead to penalties under the Income Tax Act or Black Money Act.

Jaswinder singh

Jaswinder singh (Querist)

14 January 2021 Sir/madam,
if any IT professional earned income from outside india by providing services like as a freelancer...then Is it mandatory to disclose that income under "Schedule FSI - Details of Income from outside India and tax relief(available only in case of resident)" in ITR-3?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

14 January 2021 In case of tax deducted outside India, to claim relief on tax paid outside India schedule FSI to be filled. Otherwise not required.

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Jaswinder singh

Jaswinder singh (Querist)

14 January 2021 Sir if we don't disclose it under Schedule FSI then will it not come under black money act....or any penalty leviable under income tax act?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

14 January 2021 You have to disclose the foreign income under business and professional income and pay appropriate tax even it is foreign source of income. To claim relief only filling FSI schedule required.

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Jaswinder singh

Jaswinder singh (Querist)

14 January 2021 thank you so much ....................

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