I am an indian citizen and living in india, but i'm employed by a japanese company working remotely from india, earning a salary in usd. what should i know about filing a tax return in india?

My employer doesn’t have Indian setup. I receive salary in my Indian bank account as remittance. Roughly 11 L per annum They have issued me a pay structure like below, Basic: 50% HRA: 25% Daily Allowance: 15% Rest (LTA, Uniform allowance, medical etc.): 10% Should I file tax return as an Individual or business income? Any advice or suggestion would be much appreciated. Thanks in advance.
Replies (2)

you can check these /forum/working-for-a-us-company-285376.asp , and /forum/income-tax-on-income-received-from-foreign-company--187806.asp

Firstly, there is no doubt about the fact that you will need to file a return of income in India. 

Secondly, we would need to delve more into the facts to see if your income will fall under the category of 'business income' or 'salary'. 

- Are you being paid as a contract employee by any chance. What are your terms of employment/ contact? Is your TDS being dedcuted? If yes, is it being deducted under section 192 or 194J? 

If no TDS is being deducted, and your nature of employment is more of a contract employee, then you may take the benefit of considering your income under the head "business income". Under the head business income also, you may avail specific benefits of presumptive taxation for which again facts of the case need to be observed. 

It is not a very straightforward answer unless a detailed analysis is conducted. You would also need professional help in case you require all these answers in detail and looking forward to file your returns based on the advise given. 

In case you need any professional assistance please feel free to get in touch. 

Regards, 

Aditi

 

 

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