New Delhi, July 21 -- Freelancing is a growing pillar of India's digital economy, especially in the cross-border gig space. Many professionals now offer services-design, tech, consultancy, writing-to clients based overseas. But as the work goes global, so does tax compliance. Understanding how foreign remittances and freelance income are taxed in India is crucial to staying compliant and avoiding penalties.

For Indian residents, all income-whether earned in India or abroad-is taxable in India. This includes payments received from foreign clients for freelance work. Such earnings are treated as 'Profits and Gains of Business or Profession', and tax is computed after deducting allowable expenses like laptops, internet costs, software subsc...