r/IndiaTaxation

Tax advice for individual working under contract for US company

Hi. Joined a US based company under contract. They use Deel platform there. Pay in my contract is in INR, i.e fixed INR and it is < 75L.

Now to save Tax, I have already registered for GST as a sole proprietor and will file LUT.

What I am confused is about the process to get e-FIRA and FIRC. According to the Deel AI, for local transfer, the amount will land in my Indian account through NEFT/RTGS. So from my Indian account POV, it will be like a domestic transfer.

Who would actually generate the FIRA/FIRC? Deel says it will only generate a NOC

I have savings account in SBI and Axis. Will there be any issue to withdraw amount in savings account? If no, Which one should I use to avoid much hassle?

If anyone has any idea, Please help.

Thank you

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u/Street_Albatross4 — 2 days ago

▲ 9 r/IndiaTaxation

US ETF dividend FTC claimed correctly, but CPC not applying it despite rectification request

Filed ITR-2 for AY 2025-26 with a small US income (~₹772) on which I paid US tax of ₹187. Claimed this as foreign tax credit u/s 90. Form 67 was filed on the same day as the ITR (Sep 13th 2025).

I then got a 143(1) intimation on Apr 13th with a demand of ₹210 - basically the ₹187 relief was denied, plus a small increase in 234B/C interest.

As you can see in the Annexure FSI screenshot, what I filed and what CPC computed are the same. CPC's own numbers confirm the relief is valid. But in the final tax computation, at Sl. No. 33 (Relief u/s 90/90A), they've put ₹0. Their own annexure contradicts the demand.

I filed a rectification (Reprocess type) request, plus also denied the demand in full on May 15th. But I got the order back on May 27th , with no change in demand. Plus I now owe extra amount due to the interest.

Need some guidance on what my next steps should be.

Not sure what I've done incorrectly. I've been filing my returns on my own the last 8 years and never got a IT demand except this time.
I know it's a small amount, but I do not want to pay a penny more than I am supposed to if I'm not in the wrong (as a matter of principle).

u/HeartLiberated — 8 days ago

▲ 9 r/IndiaTaxation

Does filing a Section 154 rectification after the 3 years 3 months limit expose me to any fresh notice?

I have been trying to find a clear answer to this.

My understanding is that if the if the income is below 50lkh a fresh reassessment notice under Section 148 generally cannot be issued after the normal 3 years and 3 months period.

If that time has already expired, and I now file a Section 154 rectification application, can that by itself result in the Income Tax Department issuing any fresh notice (such as a reassessment, scrutiny, penalty, or any other notice) that otherwise could not have been issued?

Or does filing a Section 154 application only allow the department to deal with the rectification request itself, without reviving any expired limitation period?

If anyone knows of a relevant provision, CBDT circular, or court judgment, I'd really appreciate your guidance.

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u/Icy-Record-4724 — 9 days ago

▲ 4 r/IndiaTaxation

Query on PPF Interest

Hi CAs,

I'm filing ITR-2 online for AY 2026-27 (FY 2025-26) under the new tax regime.

I have a PPF account and every year interest is credited on 31st March. I know that PPF interest is exempt from tax, but while filing ITR-2 online I can't find any specific field or option for PPF interest.

Do we need to report PPF interest in ITR-2 at all?

If yes, where exactly should it be disclosed? Should it be shown under Schedule EI (Exempt Income), or is it okay to leave it out since it's exempt? In schedule EI I can see PF not PPF.

Would appreciate guidance from anyone who has filed ITR-2 with PPF interest recently.

Thanks!

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u/shreya_jain_ — 12 days ago