Software as a service income

Income Tax Act 1961 Income from Business or Profession
1

I am receiving income from the USA for Software as a Service (SaaS). The total receipts are expected to exceed ₹75 lakh during the financial year.

All the existing contracts with the US clients are in my individual name, and as per the present arrangement, these contracts cannot be transferred to a company name.

Please advise how this income should be treated for Income Tax purposes if the receipts continue to be received in my individual name.

I would also like to understand:

  1. Since I do not want to establish a company and the contracts are in my individual name with clients such as Mercor, Micro1, and similar AI evaluation companies, how should this income be treated for tax purposes?

  2. Whether any part of the income can legally be routed through or accounted for in a company when the client contracts remain in my individual name.

  3. What will be the applicable tax liability if the total receipts exceed ₹75 lakh?

  4. Whether presumptive taxation or any other beneficial provision will still be available?

  5. Whether there will be any additional audit, GST, LUT, or compliance requirement because the income is received from overseas clients for AI evaluation, software, or related services?

Please suggest the most tax-efficient and legally correct structure considering that the existing contracts cannot be transferred from my individual name.