Difference in AIS Amount & Received Amount for Foreign Income - 44ADA

Income Tax ITR Filing
1

I receive money from a foreign client through a broker like PayPal.

The foreign client is mandated to deduct 1% TDS/TCS, and I see that information in my TDS/TCS.

The issue is that a foreign client is showing, say, Rs 1L and is deducting 1% TCS of Rs 1000 and is reflected in my AIS. However, since I get money through a broker like Paypal who levies fees, instead of Rs 1L, I get only Rs 95k (as an example)

Based on the above scenario, my question is:

For 44ADA, will the income that I receive in my bank account be considered, or will the income that the foreign client has reported and is shown in my AIS be considered?

2

Hi @thethinker

The gross income which has been paid by the foreign client shall be considered as your income i.e., including the amount of TDS deducted and the fees charged by PayPal etc. Hope this clarifies.

Thanks,
CA. Pulkit Garg

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3

Makes sense. Thank you.

4

You’ll have to report the total income, which is ₹1L as mentioned in your example.

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