Resident indian deriving dollars
Querist : Anonymous
Resident indian providing professional services to a US citizen and receiving dollars.
What will be the taxation in India and the best way to bring the money into the country?
Querist : Anonymous
📌 Taxation in India
As a resident Indian, your global income is taxable in India under the Income Tax Act, 1961, regardless of the currency received or the country of origin.
Professional fees received from a US client will be taxed as "Income from Business or Profession".
You can deduct business expenses to arrive at your taxable income.
Tax Rate: Based on normal slab rates applicable to individuals.
TDS in the US: If the US payer deducts any TDS (typically under IRS rules), you may be eligible to claim Foreign Tax Credit (FTC) in India by filing Form 67 before filing your ITR.
✅ Best Way to Bring USD Remittance to India
💡 Recommended Method: Foreign Inward Remittance via Banking Channels
Use official banking routes to receive funds, such as:
Wire Transfer (SWIFT):
Ask your US client to send payment to your Indian bank account via SWIFT.
Provide:
Your bank’s SWIFT code
Bank account number
Beneficiary details (name, address, etc.)
Purpose code (use the correct RBI purpose code, e.g., P0805 – Consultancy services)
PayPal / Payoneer (for freelancers):
Common for small-value service payments.
Ensure money is withdrawn into your Indian bank account.
Conversions will happen automatically.
Wise (formerly TransferWise) / Remitly / OFX:
These platforms offer good exchange rates and are fast.
Still require you to comply with RBI guidelines and declare the purpose of remittance.
🔒 Compliance Notes:
Use Purpose Codes when receiving foreign currency (especially for 15CA/CB or RBI reporting).
Keep FIRC (Foreign Inward Remittance Certificate) for your records — useful for tax and export compliance.
Report USD earnings while filing ITR and disclose foreign income under Schedule FA, if applicable.
Click here to login now
Similar Resolved Queries
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- EPF ECR NEW RULES Sep 17th 2026
- Issuing of delivery challan by seller of goods
- Taxation of crypto futures in India Fy 2026- 2027
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
