Regarding Foreign Income from side business.

Regarding Foreign Income from side business.

I do IT job from which I earn taxable income and file ITR.

Recently, I started doing a side business. I sell my services online to foreign countries like USA and collect payment via PayPal. PayPal collects payments in US Dollars and converts it into Indian rupees and then deposits it in my bank.
My total income from Foreign is about 2,00,000 INR.

Question:
1) How do I declare this in Income Tax ?
2) My total turnover is below 20 lakhs INR. Do I still need to register for GST since I receive Foreign Income ?

Asked 3 days ago in Income Tax

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.

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.

Shubham Goyal

CA, Delhi

531 Answers

19 Consultations

Talk to Shubham Goyal

a) You can declare it as buisness income in ITR

b) No its not require

Vishrut Rajesh Shah

CA, Ahmedabad

965 Answers

41 Consultations

Talk to Vishrut Rajesh Shah

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