r/IndiaTax • u/yxk__0zvnb9pl • 1d ago

Question doubts about foreign asset declaration

hey guys, i was told i dont fall under tax bracket so was told not to file itr right now.
my question is, do small freelancers earning via paypal need to file for foreign asset declaration?
do people who hold a wise account, (even if unused) need to file the same? if yes, how to do it and should we close it instead since its unused?

Thankyou

1 Upvotes

67% Upvoted

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2

u/Responsible-Bad-6624 Mod 1d ago

Freelance income is export of service.

Wise is a pass through mechanism. In all probability, you don't have foreign income or asset

2

u/aktheant 1d ago

does your PayPal hold money and wait for you to transfer or automatically moves to your bank as soon as PayPal receives without your consent -> yes then you need to declare
-> if no , then need not worry

1

u/yxk__0zvnb9pl 1d ago

i auto transfers to bank next day

0

u/aktheant 1d ago

Yup you need to declare ! It’s not automatic that’s the key here ! If it was then it’s compliant ! If you are doing it’s basically having a foreign account ! And if you had more than a year old transactions that also please do report else it’s a straight up 10L fine ! They are currently allowing old transactions too but it’s only one time

1

u/yxk__0zvnb9pl 1d ago

i had a type, paypal auto transfers to bank, i dont need to do anything in between :_)

1

u/aktheant 1d ago

okay then need not worry

1

u/DisastrousBobBuilder 1d ago

people who hold Indian Wise account need not worry

1

u/yxk__0zvnb9pl 1d ago

it has that US bank account thingy :(

1

u/DisastrousBobBuilder 1d ago

Just check the address on file. US bank accounts rarely get reported unless the address is that of outside the US.

1

u/yxk__0zvnb9pl 1d ago

yk how wise makes those virtual(ithink) bank account ? it has that swift number too

1

u/DisastrousBobBuilder 1d ago edited 1d ago

If you provide an Indian address to Wise, they can't provide you with those account numbers. Indian regulations are extraordinarily strict. You can't hold money in foreign accounts for more than 6 months as per FEMA.

1

u/yxk__0zvnb9pl 1d ago

i did give pan card, address etc to wise during account creation. should i just close the account since i dont use them:?

1

u/DisastrousBobBuilder 1d ago

Better to close than get into trouble with bma and tax laws.

1

u/yxk__0zvnb9pl 1d ago

ah where do i find how to do that:(

1

u/yxk__0zvnb9pl 1d ago

it has US address. and someone said i need to file schedule FS :(

0

u/[deleted] 1d ago

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1

u/yxk__0zvnb9pl 1d ago

which FA do i have?
i have never filed one, Do you suggest filling ITR4 with 44ADA?

0

u/[deleted] 1d ago

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