vinujaglan.com · Founder's official site 
44ADA or 44AD?
| Work | Scheme |
|---|---|
| Software, IT services, engineering, technical consultancy, architecture, interior decoration, accountancy, legal, medical | 44ADA — 50% of receipts |
| Film artists — editors, singers, writers of film stories, cameramen | 44ADA |
| Content writing, graphic design, marketing, tutoring and other non-specified work | 44AD — 6% of digital receipts (8% cash) |
Getting paid from abroad
- Income from foreign clients is taxable in India if you are resident
- Keep FIRC / bank advices and platform statements (Upwork, Fiverr, PayPal, Wise, Payoneer)
- Foreign tax deducted can be claimed as foreign tax credit with Form 67 before filing the return
- Report foreign bank or wallet balances in Schedule FA when filing ITR-3
GST on exports of services
Services to a client outside India, paid in foreign exchange, are exports — zero-rated. Register once total receipts (including exports) cross ₹20 lakh, file an LUT each year, and you can invoice without IGST. Indian clients are charged 18%.
Advance tax
Presumptive taxpayers pay their entire advance tax in one instalment by 15 March. You can always declare a higher income than the presumptive rate; declaring lower needs books and, above the basic exemption limit, a tax audit.
Worked example
Example: A web developer earns $60,000 (about ₹51 lakh) through Upwork. Under 44ADA, income is ₹25.5 lakh. New-regime tax = ₹3,45,000 + 4% cess. GST: registered with an LUT, so no IGST on the export invoices.
Common mistakes
- Treating foreign income as tax-free
- Not filing an LUT and paying IGST unnecessarily
- Skipping Schedule FA for foreign wallets
Frequently asked questions
No. It is your professional or business income; PayPal fees are an expense if you keep books.
Last reviewed on 11 November 2026 by Vinay Jaglan, VJ & Associates. Law and portal screens change — verify before acting, or ask the office.
