Hello, I am a Vastu & Astrology consultant & most of my clients are in USA, I provide them my consultancy services online or on phone, As my income is generated from Abroad, is there a section in which I can claim tax exemption, for my consultancy Income from Abroad? As the software consultancy service income is tax free by govt. So need to know can I too make my Income exempt from tax (Under what sec.)? Or the normal tax on individual is applicable to me? Pls Clarify. Thanks !!!

Vijay Jaisingh , Mumbai

I can understand your thought ! That everyone who is earning foreign exchange is being given deduction under Income Tax laws , therefore, you should also get the tax benefits.

There is logic in your thoughts , however , the law is blind and there is absolutely no respite from full taxation on your earnings even though same is in foreign exchange.

In fact , India is now not in need of foreign exchange and for that many tax benefits like 80HHC and others and also for software sector , the government has already put sun set clause in the I T Act. It is only temporary extended for software sector . Very soon there will not be any relief from taxation on software exports too!

So, in your case , normal tax shall be applicable!