I file ITR 2 and am a salaried employee. I received income from a foreign source for a consultation. How do I classify this income ? Can I still file ITR 2 or do I need to file ITR 3?
Hey @SashidharB
If your main source of income is from this consultation, you can report it as business income and file ITR-3. However, if this is your secondary income, you can report it under “Income from Other Sources” and proceed with filing ITR-2. Additionally, since this is income from a foreign source, there will be other compliance requirements such as Schedule FSI and Schedule FA while filing ITR.
Hope this clarifies your question!
Thank you for your response. The total value is low and was paid to my Indian bank account. Will it still considered an income from a foreign source as it was paid locally?
Hey @SashidharB
Yes, if the orignal source of income is out of India then it would be considered as a foreign income only.