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Receipt of Foreign remittance by UPI in Saving Account

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Mukesh Choudhary

IPCC

20 Points Posted on 10 April 2024

MR ABC RECEIVED RS.1360000/- ( IN 24 TRANSACTIONS) IN SAVING ACCOUNT UPI & CARDLESS DEPOSITS FROM FOREIGN (FROM MOTHER WORKING O/S INDIA) IN FY 2023-24 . HOW TO TREAT THEASE TRANSACTION IN ITR FILING AY 2024-25. CAN WE TREAT IT AS BUSINESS INCOME IN INDIA U/S 44AD IN ITR OF RECIPIENT..

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Quick Summary

This discussion explores how to treat foreign remittances received via UPI into a savings account for Income Tax Return (ITR) filing. The user received a significant amount from relatives abroad, questioning if it could be treated as business income under Section 44AD. Experts advise against classifying these as business income, highlighting potential FEMA and GST compliance issues. The consensus is to ignore such remittances if they are from parents or relatives, as they are typically considered normal receipts, not business income.

Nikhil Kaushik

Fellow CA

20 Points Posted on 10 April 2024

if these are remittance from parents, then it is not a business income.

If you consider this as business income, then you need to account for compliances of FEMA (what inward remittance code was mentioned) and GST before you jump to include it in the tax return as income.