Regarding foreign income from side business

1. Income Tax Declaration:

• You must report this foreign business income under the "Profits and Gains from Business or Profession" section of your Income Tax Return (ITR).

• Convert the foreign income from USD to INR at the exchange rate on the date of receipt.

• The entire global income is taxable in India for residents, irrespective of being received in India or abroad.

• Maintain supporting documents such as invoices, PayPal statements, and bank statements for this income.

1. GST Registration Requirement:

• Since your total turnover from all sources including this foreign business is below ₹20 lakhs, you are not mandatorily required to register for GST.

• The threshold limit for GST registration for service providers is ₹20 lakhs in most states (including Karnataka).

• Export of services (foreign income) is considered a zero-rated supply but turnover still counts for GST threshold.

• You may voluntarily register for GST if desired but it is not mandatory below ₹20 lakhs.

a) You can declare it as buisness income in ITR

b) No its not require

1) It will be treated as income from business or profession. Income tax would be payable on the Net profit only. Retain proofs of income generation and business expenses. Pay Advance tax on due dates. You can also opt for presumptive scheme u/s 44ADA

2) No. If you are importing services for business purpose then you are liable for registration and payment of GST on such import of services irrespective of turnover threshold

For detailed discussion you may opt for phone consultation

1. You can declare this income in your ITR as Business Income.

2. No GST registration required if turnover below 20 lkahs. However if you register for GST, you can claim refunds of GST paid on Paypal invoices and other services procured by you.

You can contact me for personal consultation for any queries.