NRI professional fees income

Save Share

This query is : Resolved

Quick Summary

A professional, previously a resident and using Section 44ADA for income reporting, has become an NRI in FY 2023-24. The discussion clarifies that Section 44ADA does not apply to NRIs. The professional earned income in India during this period, with TDS deducted. The query explores whether this income can be reported under 'Income from Other Sources' rather than preparing full accounts, given the complexity of bank transactions. The conversation also touches upon the conditions for determining residential status under the Income Tax Act.

Suraj

Suraj (Querist)
Follow

07 July 2024 Dear Sir / Madam,

My query is as follows:

Miss A, a radio jockey, radio show maker & stage show anchor was a resident till FY 2022-23. So her professional income was shown u/s 44ADA till FY 2022-23.
Now during FY 2023-24, she has become NRI as she stayed in India for 77 days only. However, she earned around Rs. 450000/- as a professional income during FY 2023-24, and TDS is deducted.

Section 44ADA does not apply to NRI. So, can I show her income under Income from Other sources? instead of preparing Income & Expenditure and balance sheet? her bank statement runs 40-50 pages with small small transactions.

Kindly revert.

Thanking You,
Suraj

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

07 July 2024 I would like to understand if the second condition for determining residential status as per sec. 6 of IT act is being satisfied by her?

Read: Under the Income-tax Law, an individual will be treated as a resident in India for a year if he satisfies any of the following conditions (i.e. may satisfy any one or may satisfy both the conditions):

(1) He is in India for a period of 182 days or more in that year; or

(2) He is in India for a period of 60 days or more in the year and for a period of 365 days or more in 4 years immediately preceding the relevant year.

Suraj

Suraj (Querist)
Follow

07 July 2024 Rambhia Sir, she was in India for 77 days during FY 2023-24, and all 365 days in all other previous years.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

07 July 2024 Yes, that makes her as Resident; unless she has gone outside for any employment.

Suraj

Suraj (Querist)
Follow

07 July 2024 Ohh!! so she is a resident for FY 2023-24. Sir, What if had she gone for normal employment out of India?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

07 July 2024 If she had gone for employment, she will be NRI as the 60 days gets replaced with 182 days in the sub-section.