Freelancer Receiving Payments via Crypto - Tax Classification Help

Spooderman (Software developer) (14 Points)

10 June 2025  

I'm a software developer receiving monthly payments from foreign clients in USDT, then converting to INR.

Payment Flow: Foreign Client → USDT → CopperX (https://copperx.io/) (offramp) → skydo -> Indian Bank Account 

Main Questions

1. Tax Classification

Will this be taxed as:

  • Business Income (my tax slab rate) - since I provided development services?
  • Crypto Income (30% flat rate) - since payment was in USDT?

2. FIRC Issue

  • FIRC shows CopperX as sender, not the actual client company
  • Is this acceptable for IT/FEMA compliance?
  • What documents needed to prove genuine work relationship? 

Background

  • Have proper contracts with foreign clients
  • Skydo provides FIRC for all transactions
  • Not doing any crypto trading - just receiving payments
  • Can prove services rendered through invoices/emails

Need expert CA opinion on correct tax treatment and compliance requirements.

Thanks in advance! 🙏