CASE STUDIES / ROHAN-MUMBAI

[CS-01]

I just wanted to do my work -
not decode section 44ada.

A conversation with

Rohan M.

UX Designer, Freelancer

About

Rohan is a Mumbai-based UX designer working with European and Singaporean startups. For years he received payments in EUR and SGD via Wise and bank wires, but wasn’t sure how India treats foreign income.

Field

Design

Works with

European & Singaporean startups

Income via

Wise, SWIFT bank transfers

Location

Mumbai

Annual income bracket

35–45L INR

Tax complexity

  • Filed under 'Other Income' instead of Business/Profession
  • Did not apply DTAA credits on foreign tax withheld
  • No foreign tax credit (FTC) claim mechanism
  • No business expense mapping (tools, Wi-Fi, equipment)

Challenge

"I thought freelancing abroad meant I couldn’t pay taxes here."

Some clients withheld tax overseas, so Rohan assumed he didn’t need to declare that income in India. He was effectively paying twice and missing legitimate deductions.

Wrong income head → no professional deductions

No DTAA utilization → double taxation exposure

Unreconciled remittances and missing expense trail

Lack of DTAA + wrong income head silently inflated his tax outgo for multiple years.

The TaxTap Moment

"After joining Taxtap, I learned how to declare foreign income, claim DTAA benefits, and avoid double taxation."

In a single review call, Taxtap laid out a clear plan and executed within weeks:

Reclassified income to Business/Profession and rebuilt P&L

Applied DTAA and prepared FTC working papers

Amended returns to recover excess taxes

Mapped design stack (Figma, Adobe, Zoom) as deductible expenses

Numbers?

Refund received from corrected ITRs

Taxable income dropped ~20% post expense mapping

Clarity on foreign income + DTAA going forward

"For the first time, I understood what to file, where to claim, and why. No more double tax."

The Reality Before Taxtap

ITRs looked ‘clean’ but were inefficient — compliant on paper, costly in practice.

1. Wrong Head of Income

    Filed under 'Other Income' rather than Business/Profession.

  • Lost professional deductions
  • Misstated freelance income

2. No DTAA/FTC

    Foreign tax withheld wasn’t credited in India.

  • Paid twice on the same income
  • No treaty benefits applied

3. No Expense Deductions

    Work tools, connectivity, and gear never claimed.

  • Software subscriptions
  • Laptop depreciation
  • Wi-Fi/home office

How Taxtap Helped

Taxtap rebuilt compliance and created a repeatable playbook.

✅ Refiling & DTAA

  • Corrected income head and rebuilt computation
  • Prepared DTAA/FTC schedules and supporting docs

✅ Expense Mapping

  • Categorized tools, equipment, and utilities
  • Standardized monthly bookkeeping checklist

✅ Ongoing Clarity

  • Invoice/contract checklist for foreign clients
  • Quarterly advance-tax guidance based on actual inflows

"I stopped feeling punished for working globally. It’s finally structured and fair."

Lessons for Freelancers in Similar Situations

Foreign income is taxable in India — apply DTAA to avoid double tax

Use Business/Profession to unlock deductions

Keep clean trails for software, equipment, and remittances

You do the earning.
We do the filing.

All filings. All deadlines. All that scary government stuff?
Handled — by real CAs, not robots.