• Can I claim foreign tax under section 44ADA?

Hi,

I am a self employed consultant providing services to a UK based client from whom I get paid into a UK bank account. I pay UK tax on this amount. But as I have lived in India now for more than two years, I qualify as an Indian tax resident so I have to file my ITR here as well. I also get paid by some clients into my Indian bank account. Now for this year can I file under the presumptive tax section (44ADA) and claim tax relief for the tax I've paid in the UK? If so, do I still use ITR-4?
Asked 8 months ago in Income Tax from Mumbai, Maharashtra
Hii

Section 44ADA for specific profession list of the same are as under 
1 Legal
2 Medical 
3 Engineering 
4 Architectural Profession
5 profession of Accountancy
6 Technical Consultancy
7 Interior Decoration

thus if you fall any one of above then you can file return under section 44ADA

more benefit of tax paid in UK you have to check INDIA and UK DTAA 
Lalit Bansal
CA, Delhi
515 Answers
36 Consultations

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Hi

What is the nature of services you are providing?
It is important to classify the service to know whether you are eligible to claim 44ADA.
Lakshita Bhandari
CA, Mumbai
1468 Answers
40 Consultations

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yes your business is covered under above definition please select code 0607 while filling itr to avoid any default notice u/s 139(9) 
Lalit Bansal
CA, Delhi
515 Answers
36 Consultations

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Since there is ambiguity in clarification as technical consultancy, choose the code 607 for other professionals.
Lakshita Bhandari
CA, Mumbai
1468 Answers
40 Consultations

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No for that it is must to file ITR 4
Vishrut Rajesh Shah
CA, Ahmedabad
605 Answers
10 Consultations

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Hi,

Yes, you can very well file ITR-4 if your income is less than Rs.50 Lacs. For claiming relief for the tax paid in the UK, you will have to go through the DTAA agreement.

Regards,
Keerthiga Padmanabhan
M.Com., CA, LL.B
Keerthiga Padmanabhan
CA, Greater Mumbai
784 Answers
23 Consultations

5.0 on 5.0

Yes, you can do so.

Please feel free to call revert in case you need more clarity.

Thanks and regards
Abhishek Dugar
CA CS B.Com
Abhishek Dugar
CA, Mumbai
2929 Answers
123 Consultations

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