Can I claim foreign tax under section 44ADA?
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 11 months ago in Income Tax from Mumbai, Maharashtra
Section 44ADA for specific profession list of the same are as under
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
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.
I provide consulting services to clients in the sustainable development sector. Services include research and analysis, developing and managing websites, providing advice on projects and programmes. There seems to be no clear interpretation of the term 'technical consultancy' for 44ADA but I believe I fall under that.
Asked 11 months ago
yes your business is covered under above definition please select code 0607 while filling itr to avoid any default notice u/s 139(9)
Since there is ambiguity in clarification as technical consultancy, choose the code 607 for other professionals.
No for that it is must to file ITR 4
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.
M.Com., CA, LL.B
CA, Greater Mumbai
Yes, you can do so.
Please feel free to call revert in case you need more clarity.
Thanks and regards
CA CS B.Com