India taxes individuals based on a system of income slabs. Different tax rates are assigned to different ranges of income.&nbsp;

Understanding tax slabs is crucial for several reasons.

As a person earns more, the tax liability also increases, creating a fair and progressive tax system in the country. To achieve this, the government regularly updates and announces changes to tax slabs in the Union Budget.

The income tax slabs differ between the old and new tax regimes. Let's explore the specific slab rates applicable to Individuals for FY 2022-23 (AY 2023-24) and FY 2023-24 (AY 2024-25).

Income Tax Slab Rates For FY 2023-24 (AY 2024-25)&nbsp;

Rates of the old tax regime slabs are categorized into three groups:

The new tax regime applies uniform tax rates to all individuals, eliminating the age-based distinctions in the old system. The new tax regime slabs 2023-24 are outlined below.

Applicability of Surcharge for FY 2023-24 (AY 2024-25)

The income tax <a href="https://incometaxindia.gov.in/charts%20%20tables/tax%20rates.htm">surcharge</a> is an extra fee imposed on top of the <a href="https://www.skydo.com/blog/how-to-file-taxes-under-44ada?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">regular income tax</a>. An additional tax is applied to individuals with higher income earnings in a specific financial year. Let’s look at the applicable surcharge rate under the Old and New tax regime.

However, 25% or 37% surcharge rates will not apply to income under the following sections.

Consequently, the highest surcharge rate on the tax payable for such incomes will be 15%.

Starting from the Assessment Year 2023-24, the maximum surcharge rate on tax payable for dividend income or capital gain specified in Section 112 will be capped at 15%.&nbsp;

A 4% Health and Education cess will be applied to all cases’ total income tax liability and surcharges.

Comparison of tax rates under the New tax regime and the Old tax regime for FY 2022-23 (AY 2023-24)

How do you calculate the income tax from the income tax slabs?

Let’s understand the calculation with an example.

Sanjana, aged 35, has a total taxable income of Rs. 8,50,000. She has opted for the old tax regime. Her income includes income from salary, interest and rental income. Deductions under section 80 have been reduced. Now, Sanjana wants to know her <a href="https://www.skydo.com/blog/gst-requirements-international-service-sales?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">tax liability</a> for FY 2022-23 (AY 2023-24).

*Sanjana, an individual taxpayer under the age of 60, enjoys an income exemption limit of up to Rs 2,50,000. Other taxpayers, i.e., senior and super senior citizens, have higher income tax exemption thresholds of Rs 3,00,000 and Rs 5,00,000, respectively.

Please be aware that the tax rates in the New Tax Regime are uniform for all categories of individuals, including regular individuals, senior citizens, and super senior citizens.&nbsp;

Individuals with a net taxable income of up to Rs 5 lakh qualify for a tax rebate under section 87A, resulting in zero tax liability in both the New and Old tax regimes. It's important to note that in Budget 2023, the rebate under the new regime has been extended, making income up to Rs 7 lakh tax-free from the FY 2023-24 onward.

Let's delve into effective strategies to maximize your investments while minimizing the associated tax burdens.

ELSS mutual funds provide a dual benefit of potential capital appreciation and tax savings under Section 80C of the Income Tax Act. Investing in ELSS reduces taxable income and offers a path for long-term wealth growth.

2. Explore tax-efficient investment avenues

Health insurance qualifies for tax benefits under Section 80D. You can claim tax benefits on premiums paid - up to Rs 20,000 for senior citizens and Rs 15,000 for others. For example, if you pay Rs 15,000 for your policy and Rs 20,000 for your senior citizen parent, you can claim a total tax benefit of Rs 35,000.&nbsp;

Maturity value is tax-free for sums received under critical illness insurance policies.

This strategy entails selling loss-making assets to realize the capital loss and using it to offset the gains earned by profit-making assets.

For instance, if you have a loss of Rs. 20,000 in Stock A and a gain of Rs. 30,000 from Stock B, you can sell Stock A during a market downturn to offset the gains. This way, you can reduce your taxable income. The saved amount can be reinvested for portfolio growth.

Ensure that tax loss harvesting aligns with your overall financial goals and plan by considering a discussion with a financial professional or tax advisor.

<a href="https://www.skydo.com/blog/how-can-the-right-chartered-accountant-help-your-tech-export-business?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">Consult financial professionals or tax advisors</a> for effective tax planning and strategic advice. Their expertise can provide tailored insights aligned with your financial goals and ensure a well-informed approach to optimize your tax situation.

If you need help deciding what is right for you, we will connect you with our panel of Indian and US-based CA / CPAs. Feel free to reach out to us.

Q1. How is a taxpayer's income categorized?

Ans: A taxpayer's income falls into five categories outlined in Section 14 of the Income Tax Act. These include Income from salary, Profits from a business or profession, Income from House Property, Capital Gains, and Income from Other Sources.

Q2. Is it possible to avail of 80C deductions while choosing the new tax slabs 2023-24?

Ans: No, under the new tax regime, several deductions and exemptions, including those under section 80C, are not permitted. Opting for the new tax regime means foregoing the ability to claim deductions under section 80C.

Q3. What do "Previous Year" and "Assessment Year" mean?

Ans: We have two important terms in income tax provisions: (i) Previous Year and (ii) Assessment Year. Previous Year is when you earn income, typically from April 1st to March 31st. The year right after the Previous Year, from April 1st to March 31st, is called the 'Assessment Year.'

For example, the Previous Year is from April 1, 2023, to March 31, 2024 (FY 2023-24). The corresponding Assessment Year is from April 1, 2024, to March 31, 2025 (AY 2024-25).

Q4. What is the tax exemption limit for calculating income tax rebate under section 87A?

Ans: For FY 2023-24 (AY 2024-25), the rebate limit has been increased to Rs. 7,00,000 under the new tax regime. This means a resident individual with taxable income up to Rs 7,00,000 will receive Rs 25,000 or the amount of tax payable (whichever is lower) as tax relief. However, the old tax regime's threshold limit will remain the same, i.e., Rs 12,500 if taxable income is up to Rs 5,00,000.

Q5. How much is the standard deduction for FY 2023-24?

Ans: You can claim a standard deduction of ₹50,000 to the income taxable under the head ‘Salaries.’ The standard deduction is a tax benefit that can be claimed irrespective of the amount spent on Transport or Medical Allowance. It applies to individuals earning a salary or pension income.

Prepare for the upcoming year's tax season by understanding the tax slabs for 2023-24 and optimizing your tax savings. 

Tax Slabs in 2023-24: Plan Ahead for Next Year Tax Savings

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Rohit Khuranna

With the introduction of online payments, both you and your clients have become more comfortable with digital payments in the last few years. But if you have to pay Rs. 5 lakh to a supplier today, what payment mode should you use: NEFT or RTGS?

You frequently encounter two seemingly similar yet distinctly important methods in the complex web of financial dealings. But are they just interchangeable acronyms, or do they <a href="https://www.skydo.com/blog/how-you-can-streamline-international-transactions-for-your-business?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">streamline your financial operations</a>?

This question is best answered by understanding the difference between NEFT and RTGS.&nbsp;

NEFT (National Electronic Funds Transfer)

National Electronic Funds Transfer (NEFT) is an Indian nationwide payment system that allows individuals to transfer funds online from one NEFT-enabled bank to another. The Reserve Bank of India introduced the payment system in November 2005 as a digital alternative to depositing money in someone else’s bank account at a bank branch.&nbsp;

Previously, there were several restrictions on the timings of money transfers through NEFT, which the RBI removed by updating the payment system in November 2019. Now, individuals can transfer money through NEFT 24x7 and 365 days a year.&nbsp;

We need some basic information to conduct any RTGS or NEFT transaction

Here are some features and characteristics of financial transactions executed through NEFT:&nbsp;

Financial transactions made through NEFT have a minimum transfer limit of Rs 1. RBI has not set any maximum limit for NEFT transactions but a per-transaction limit of Rs 50,000 for cash transactions. However, there is no upper limit on the total amount individuals can transfer using the NEFT facility.&nbsp;

This means you can transfer as much money as you want, but you must limit the amount to Rs 50,000 per transaction and use multiple transactions to transfer money above Rs 50,000. However, few banks have set their own maximum daily limit on the amount you can transfer using the NEFT facility.&nbsp;

There are no transaction charges for the recipient of funds sent through the NEFT facility. Individuals who execute financial transactions through NEFT online also don’t have to incur any money transfer fee. However, if you are initiating an NEFT fund transfer offline by visiting the bank, it may charge the following (these costs vary depending on the bank and type of account:&nbsp;

Real-Time Gross Settlement (RTGS) is a nationalized electronic fund transfer system used by Indian banks and financial institutions to execute time-sensitive and high-value transactions. Financial transactions executed through RTGS are considered the safest among payment systems as the transactions are done in real-time and in full rather than in batches.&nbsp;

The term ‘gross’ in Real-Time Gross Settlement (RTGS) signifies the payment execution process done individually without offsetting and netting against other transactions. Individuals can transfer money through RTGS 24x7 and 365 days a year. The <a href="https://www.skydo.com/blog/real-time-tracking-of-international-payments?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">real-time payment</a> process ensures that the financial transactions are highly secure and independent of other financial transactions.&nbsp;

Here are some features and characteristics of financial transactions executed through RTGS:

RTGS transactions are meant for high-value transactions, and the RBI has set the minimum RTGS limit to initiate a transaction at Rs 2 lakh. RBI has not set any maximum limit for financial transactions that individuals can make through RTGS. However, banks may set their own upper limit for the maximum funds that can be transferred through RTGS in a single day.&nbsp;

There are no transaction charges for the recipient of funds sent through the RTGS facility. However, individuals making the payment through RTGS must incur a certain money transfer fee, which banks may adjust at their convenience. Mostly, RTGS transaction charges are around:&nbsp;&nbsp;

There are numerous differences between NEFT and RTGS based on their transaction processing speeds, minimum and maximum transaction limits, applicability for different types of transactions, etc.

The major difference is the settlement type. Let’s say you have to transfer Rs. 2,50,000 to your supplier. If you send it by RTGS, your bank A will send it to their bank B, and they will receive it almost immediately.

However, if you send it through NEFT, then Bank A will block these funds from your account. At the end of the settling window, they will check if Bank B owes them any money. If Bank B has to pay them Rs. 1,00,000, Bank A will only transfer Rs. 1,50,000 to them. This ‘netting’ of what one bank must give vs what they have to get is the core mechanism of an NEFT transaction.

Here are the key differences between NEFT and RTGS: 



Understanding the key differences between NEFT and RTGS is the best way to understand which payment mode suits you best.

If you want to transfer money lower than Rs 2 lakh without the urgency of instant settlements, you can use NEFT online as it offers a free-of-cost way. For example, if you are a freelancer and want to transfer or receive fees of Rs 40,000, you can opt for NEFT as a <a href="https://www.skydo.com/blog/cut-international-transaction-costs?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">cost-effective way</a>.&nbsp;

On the other hand, if you want to make high-value transactions higher than Rs 2 lakh, it is beneficial to ensure that the payment is settled instantly and in full. You can opt for RTGS as the payment mode in such a case. For example, if you want to execute a business transaction, which is generally high-value and above Rs 2 lakh, you can opt for RTGS, as it will instantly confirm a fund transfer. It is deemed that on such a large amount, you will be comfortable incurring the cost of RTGS payments.

Money transfers are one of the most critical aspects for any business, whether as a freelancer or an entrepreneur. Facilities such as NEFT and RTGS have made it easier for customers nationwide to send and receive payments anytime and with the utmost security.&nbsp;

It is common for individuals making payments lower than Rs 2 lakh to use NEFT, while individuals looking to transfer funds higher than Rs 2 lakh choose RTGS. However, it entirely depends on your business type and the urgency of financial transactions’ settlement to make an informed choice between NEFT and RTGS. That being said, if you want to receive international funds in foreign currencies, look no further than <a href="https://www.skydo.com/?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=demo_click">Skydo</a>. With a Skydo payment platform, you can <a href="https://www.skydo.com/blog/seamless-payment-experience-with-international-bank-accounts?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">open an international bank account in just five minutes</a>.&nbsp;

Q1.&nbsp; Which mode of payment, NEFT or RTGS, is faster?

Ans: When compared based on their settlement speeds, RTGS is a faster mode of payment as it settles the funds in full and instantly. On the other hand, NEFT takes around 30 minutes for payment settlement and settles them in batches.&nbsp;

Q2. Is it compulsory to have an Indian bank account to transfer funds through NEFT and RTGS?

Ans: Yes, you need to open a bank account with an Indian bank and opt for Internet banking to transfer funds through NEFT and RTGS online.&nbsp;

Q3. What security measures are in place for NEFT and RTGS transactions?

Ans: The Reserve Bank of India has made it mandatory to create a beneficiary before making payments through NEFT and RTGS for extensive security. The bank requires you to enter the recipient's bank account details, such as the recipient's name, bank and branch name, account number, and IFSC code. The bank matches and cross-checks the details for utmost security.&nbsp;

Q4. Can I reverse a transaction made through NEFT or RTGS?

Ans: No, you can not stop or reverse a payment once made through NEFT and RTGS. However, you can inform the bank immediately if you have sent the money to the wrong recipient. In fact, if the bank finds some mismatch in the account name and number details, they shall reverse the transaction by themselves, too.&nbsp;

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If you’re involved in international remittances, getting purpose codes right is crucial. These alphanumeric codes are used to define the reason for a transaction, and using the correct one is key to smooth payments.

A wrong or missing purpose code might lead to:

Rejection of the payment and its return to the source, or

Delays while the bank verifies the transaction’s purpose

To avoid these issues, Skydo is here to ensure your international payments are fast, easy, and compliant. Let’s explore how our autosave purpose code feature supports you in creating a seamless payment experience.

Skydo: Simplifying Purpose Code Allocation

For Indian businesses, handling international payments and invoicing can be both complex and time-consuming. From creating invoices and tracking payments to managing purpose codes, the process can take up a lot of your time.

That is where Skydo comes in. We offer automation features that make these tasks easier, helping you manage cross-border transactions more efficiently.

With Skydo, you can automate invoice generation, payment tracking, and purpose code management, so you can focus more on your business and less on paperwork.

Steps to Autosave Purpose Code in your Invoice with Skydo

If you cater to several foreign clients and send out invoices regularly, manually entering purpose codes in hundreds of invoices over a long period can not only be tedious but very prone to potential human errors.&nbsp;

But with Skydo, you can eliminate the manual effort and mitigate risk because it saves the purpose code in its database and prefills it corresponding to the services offered.

Let’s understand the step-by-step process of creating an invoice on Skydo and how the purpose code feature works:

Realizing Efficiency Gains and Compliance

As we’ve seen, using incorrect or missing purpose codes can cause significant problems for cross-border transactions. Banks may flag these transactions as suspicious, which can lead to delays or even failures in processing payments.

When a transaction is flagged, it can disrupt your business cash flow and create obstacles for smooth operations. This not only affects your current transactions but can also hinder your ability to scale and grow your business.

To avoid the inconvenience of delays and complications with international transactions, Skydo takes care of the purpose code for you. By adding the correct purpose code based on your previous input, Skydo ensures that your inward remittance arrives on time.

This accuracy not only reduces your business risks but also supports rapid growth and scalability. Plus, Skydo’s approach helps you stay compliant with regulatory requirements, minimizing the risk of hefty penalties.

By facilitating accurate purpose codes, Skydo contributes to a smoother global financial ecosystem, making cross-border transactions seamless and efficient.

RBI purpose codes play a key role in a stable financial system, enabling the monitoring of foreign funds and preventing fraud. Accurate use of these codes facilitates smooth international transactions and supports business expansion.

We understand that manually handling these purpose codes can be difficult and prone to mistakes. Skydo’s automated feature makes this task easy and ensures compliance, so you can focus on growing your business.

<a href="https://www.skydo.com/?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=demo_click">Join the Skydo payment platform today</a> to experience seamless cross-border transactions and mitigate financial and non-compliance risks!

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India is fast growing as a gig economy, and projections indicate the gig economy can contribute 1.25% to India’s GDP while creating a staggering <a href="https://www.indiatoday.in/education-today/featurephilia/story/indias-gig-economy-navigating-the-path-to-prosperity-and-inclusivity-2430035-2023-09-02">90 million non-farm jobs. </a>While it is natural to assume that gig workers are generally freelancers, that’s not always the case. Professionals and sole proprietors also form a significant contributor to the gig workforce.&nbsp;

Sole Proprietorship and Freelancer may both feel the same. You may picture a one-man (or woman) army juggling all tasks alone. A freelancing business may transition into a sole proprietorship or any other business structure. The same is the case with sole proprietorship. However, there are substantial differences between their features, regulations, characteristics, and growth potential. But to start off, what should be your business structure between <a href="https://www.skydo.com/blog/exploring-sole-proprietorship-is-it-the-right-business-structure-for-you?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">sole proprietorship</a> and freelancing? The blog sheds light on the key differences, letting you choose the most suitable one.&nbsp;

Freelancers are self-employed individuals who offer their services, skills, or expertise to various clients without being exclusive. Although they provide their services to a host of clients, such as companies, they are not considered salaried employees of the company, i.e., they are not on payroll.&nbsp;

Freelancers are not bound to a long-term commitment with a single employer and have the flexibility to choose their clients, projects, and working hours. A freelance contract is generally time-bound and is specified in the agreement signed by the freelancer and the client before the offering of the service begins.&nbsp;

Freelancers do not have any limitations on the type of service they can offer across industries as long as the nature of work is legal and is offered after signing a valid freelance contract. <a href="https://www.skydo.com/blog/top-3-freelancing-trends-in-the-gig-economy?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">Freelancers offer their services</a> in industries such as:&nbsp;

Freelancing is one such type of business that allows freelancers to earn at their convenience, but it may have some disadvantages. Here are the pros and cons of freelancing:&nbsp;

Sole Proprietorship is a business owned, managed, and operated by a single individual. It is one of the simplest forms of business structures and offers simplicity and ease of operation. Since the business owner, called the sole proprietor, operates and manages the business independently, the sole proprietor is held accountable and answerable for all of the business’s debt, liabilities, and losses.&nbsp;

Furthermore, the sole proprietor realises all the profits and can use them for personal or business purposes. Here are some of the most common characteristics of a sole proprietorship:&nbsp;

Similar to freelancing, sole proprietorship also comes with its set of advantages and disadvantages. These are:&nbsp;

Sole Proprietorship vs. Freelancer: What's the difference?

It is important to understand the difference between freelancing and sole proprietorship to choose the ideal business structure. Here is a detailed table to understand the difference between sole proprietorship &amp; freelancing:

Making A Choice: Sole Proprietorship or Freelancer?&nbsp;

Before&nbsp;choosing sole proprietorship or freelancing, consider the following factors: 

How to Build a Website and Portfolio for Your Services

Building a website and portfolio/brochure is crucial for freelancers and small business owners to showcase their services, attract clients, and establish a professional online presence.

Once you have defined your brand, niche, or services, you can utilize numerous tools, such as <a href="https://www.wix.com/">Wix</a>, <a href="https://wordpress.com/">WordPress</a>, <a href="https://webdesigner.withgoogle.com/">Google Web Designer</a>, <a href="https://www.notion.so/">Notion</a>, <a href="https://www.canva.com/">Canva</a>, etc., to create a free website. If you find it complex, you can hire a third-party website design agency to make one for you.&nbsp;

If you’re a freelancer in the media/marketing space, you can create an online portfolio to showcase your past work using tools such as Behance, Adobe Portfolio, Dribble, Crevado, etc.&nbsp;

As long as business structures go, both sole proprietorships and freelancing offer simple processes to establish, manage, and operate the business with utmost flexibility. However, the choice between a sole proprietorship and freelancing hinges on various factors, each with its advantages and disadvantages.

Sole proprietorships offer a more formal and recognised business structure but lack the flexibility and convenience provided by freelancing. However, it entirely depends on the sole proprietors or freelancers to scale the business to new heights, which may result in higher earnings while retaining all the advantages.&nbsp;

When choosing between the two, you should analyze your personal preferences, career aspirations, and the desired level of involvement in business operations. If your business results in onboarding foreign clients, you can create an account on <a href="https://www.skydo.com/?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=demo_click">Skydo</a> to receive foreign currency payments seamlessly.&nbsp;

Q1. Can I transition from freelancing to a sole proprietorship or vice versa?

Ans: Yes, there are no restrictions for transitioning between freelancing and a sole proprietorship and vice versa. Many individuals start as freelancers and later transition into a sole proprietorship. Conversely, some business owners may freelance in specific projects while operating as a sole proprietor.

Q2. Can I earn more in sole proprietorship than freelancing?

Ans: The earning potential entirely depends on the nature of the business and how many clients or customers choose your products or services. You can increase your earning potential in both the business structures by creating a website and portfolio and by marketing your business.&nbsp;

Q3. What factors should I consider when deciding between sole proprietorship and freelancing?

Ans: Consider your long-term goals, the scale of your business, the nature of your services, industry and sector demand, risk tolerance, and financial and legal considerations.

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For exporters, eBRC (Electronic Bank Realization Certificate) is a key compliance document that serves as proof of payment received from abroad for exported goods or services. It is especially important for goods and software exporters covered under SOFTEX.

In this blog, we’ll break down what eBRC is, why it matters, how to obtain it, and everything else you need to know.

An eBRC (Electronic Bank Realization Certificate) is digital proof that your bank issues once you receive payment for an export. Simply put, it confirms that you’ve been paid for your goods or services.

This certificate is important because it helps you report your earnings, file taxes easily, and even access government benefits meant for exporters including low-cost loans, subsidies, duty exemptions and more.&nbsp;Since eBRC includes all the transaction details, it also makes compliance with authorities like the Income Tax Department smooth and hassle-free.

Before eBRC, getting a <a href="https://www.skydo.com/blog/bank-realisation-certificate-all-you-need-to-know">Bank Realization Certificate (BRC)</a> was a tedious process. Exporters had to visit their bank, apply for a physical BRC, and then submit it to the Directorate General of Foreign Trade (DGFT). The DGFT would manually enter transaction details, making the process slow and complicated—especially for claiming export incentives.

In 2012, the DGFT introduced e`BRC, eliminating the need for physical visits and paperwork. Now, banks issue BRCs digitally, making it faster, easier, and more efficient for exporters to claim benefits and comply with regulations.

In India, banks issue an -BRC to exporters through the following process.

How do you check the eBRC status on the DGFT Website?

Here are the steps to check the status of your eBRC (Electronic Bank Realization Certificate) online.

DGFT has made it mandatory for all exporters to apply for and receive the eBRC to demonstrate that they have received payment for their exported goods or services per DGFT regulations.

The eBRC system provides a digital record of export transactions, making it easier for exporters to maintain and retrieve records for audit and compliance.  Additionally, exporters can avoid visiting the bank and DGFT offices.&nbsp;

One of the main reasons exporters apply for the eBRC is to reap the benefits of various export benefits offered by the Indian government under its Foreign Trade Policy. Submitting an eBRC allows the exporters to be eligible for benefits such as low-cost loans, duty exemptions, subsidies, etc.&nbsp;

Enhancing transparency and accountability

The Indian government and authorities such as the Income Tax Department and the DGFT constantly monitor and manage the country's foreign exchange reserves and tax filing. Issuing e-BRC ensures that the foreign exchange earned through exports is accurately reported and accounted for with effective tax filing.&nbsp;

How to Claim Export Incentives using eBRC

In India, the DGFT decides on the value of the incentives which an exporter can seek under the various export benefits. The value is decided by analysing the Free on Board (FOB) of the exported goods and services mentioned in the shipping bills, and the total received payments per the eBRC.&nbsp;

Here's how you can claim these benefits with eBRC:

However, you must ensure that the bank has submitted an error-free e-BRC and it reflects the consolidated realisation value. Furthermore, you must enter freight values, insurance and commission values in the refund application, as the e-BRC excludes such values.&nbsp;

Here are some key resources and tools that can help you in your endeavour to obtain your e-BRC.

eBRC is a crucial certificate issued by the bank and verified by the DGFT for streamlining the payment procedure for exporters and working as an income proof for better transparency and tax filing.&nbsp;

It is mandatory for an exporter receiving payments for the export of goods and services to apply for eBRC and ensure that the bank uploads it on the DGFT website. Utilising the eBRC, exports can present their eligibility for various export incentives and increase their profit margin.&nbsp;

However, as an exporter, you must maintain accurate records of your export transactions and related documents to facilitate the e-BRC application process. Since the regulations and the procedure may change over time, it's important to stay updated with the latest information from official government sources and industry associations.&nbsp;

You can contact <a href="mailto:support@skydo.com">industry experts at Skydo</a> to help you with the eBRC process and in case you have any other queries related to foreign exchange.&nbsp;

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Doing business globally has never been easier, until it’s time to get paid.

If you're an exporter, freelancer, or SaaS founder in India, you probably know the struggle. You finish a project or ship a product overseas… and then begins the long wait. Between delays, surprise deductions, poor exchange rates, and a ton of paperwork, getting your money from international clients can feel like a second job.

That’s where virtual bank accounts come in,&nbsp; and they’re changing the game.

Think of them as local bank accounts in the countries you do business in, without needing to actually open one abroad. You get paid like a local, skip the heavy banking charges, and see your money land in your Indian account faster and in full.

Let’s make international payments one less thing to worry about.

A virtual bank account is like a digital address for your international payments. It’s not a physical account you walk into, instead, it’s a unique account number (usually 18 digits) linked to your real Indian bank account.

When your overseas client pays you through this virtual account, the money is instantly routed to your actual bank account, without you needing to open a bank account in that country.

Now, here's the key difference:
Virtual accounts don’t hold money; they just receive and forward it. Think of them as smart couriers that collect funds and drop them directly into your home bank, minus the usual chaos of SWIFT delays or form-filling marathons.

So why are exporters and freelancers making the switch?

You don’t have to share your actual bank account details with clients. That’s one less exposure point.&nbsp;

Working with clients across the US, UK, EU, and beyond? You can set up a virtual account for each region. That means payments in different currencies, all tagged to the right client, making reconciliation smooth and stress-free.

At their core, virtual bank accounts are like “mirrors” of real bank accounts. They don’t actually hold funds, but act as smart collection tools designed to receive money, identify where it came from, and route it to your primary bank account.

Let’s break that down with a simple example:

Say you're an Indian freelancer working with clients in the US, UK, and Singapore. Instead of asking them to make an international wire transfer to your Indian bank account (which can take days and involve hefty fees), you generate a virtual account in each client’s region.

So when your US client sends you $1,000 to your US virtual account, they’re doing a local transfer, just like they would to a US-based vendor. That money is received by your virtual USD account, converted into INR, and credited to your Indian bank account, all behind the scenes.

Virtual accounts are especially helpful when working with multiple clients or marketplaces, letting you track payments separately without opening and maintaining multiple physical bank accounts abroad.

They’re not magic, just smart infrastructure layered on top of traditional banking rails.

Why Virtual Bank Accounts Work Better for Global Payments

Whether you're a freelancer, exporter, or SaaS business dealing with overseas clients, virtual bank accounts offer a smoother, faster, and more cost-effective way to get paid. Here’s how:

With traditional bank transfers, your international payments can take anywhere from 3 to 7 days to land in your account, especially if they go through SWIFT. That’s a lot of waiting, and for a business, delays hurt.

Virtual bank accounts cut this down drastically. Platforms like Skydo settle your payments within 24 hours of receipt, helping you maintain liquidity and plan cash flow more confidently.

Traditional methods come with hidden costs:&nbsp; SWIFT charges, poor exchange rates, and service fees that chip away at what you actually receive.

With virtual accounts, you bypass SWIFT entirely. Plus, platforms like Skydo offer live exchange rates with zero markup, so you get the full value of your earnings, not just what’s left after deductions.

Your virtual account is linked to your real bank account, but it doesn’t expose it. That means when you share your virtual account details with clients, your primary bank info stays private.

These accounts also come with features like:

Even if someone gets access to your virtual account number, they can’t use it to touch your funds.

How to Open a Virtual Bank Account in India (Without Any Red Tape)

Setting up a virtual bank account might sound complex, but in reality, it’s much easier than opening a traditional foreign bank account.