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Tax Calculation for Resident Indian earning salary in USD

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VIPIN

engineer

21 Points Posted on 15 March 2022

Dear Members, I am living in india and currently employed by a foreign company as consultant, where my salary is processed in USD and then remitted to my bank account in India.

1. Will the income tax be applicable for this kind of income ?

2. Which ITR i need to file - ITR1 or ITR4 (as my work is kind of providing technical consultancy services)?

Thanks in advance.

Replies (3)

Quick Summary

This discussion clarifies tax implications for resident Indians earning a salary in USD from a foreign employer. The income is treated as professional income in Rupees, regardless of the currency or employer's location. For consultancy services, ITR4 is generally recommended, especially if opting for presumptive taxation. GST registration may also be required if annual earnings exceed specific thresholds.

JJJ

Need help

695 Points Posted on 15 March 2022

There's no impact on your tax liability based on the currency or where the employer is located.

If you're a consultant as it seems from what you wrote, you basically earn professional fees.

Whatever the rupee amount is that you got in your Bank account will be your professional income.

If that total income in rupees is below 50 lakh, you can simplify things by opting for presumptive income (depending on the profession) and calculate your tax based on a flat 50% profit and return your income in form ITR4