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

Sending money abroad can feel overwhelming, especially when understanding the compliance requirements. One key challenge Indian residents face is knowing when and how to file Form 15CA and Form 15CB, essential documents for making international payments to non-residents.

For example, if you run a software company in India and must pay USD 10,000 to a US-based UI/UX consultant, your bank will ask for Forms 15CA and 15CB before processing the payment.&nbsp;

Does that sound relatable? Don't worry. We're here to simplify it for you.

This blog will explain exactly what these forms are, why they matter, and how to file them easily. Let's get started!

Form 15CA is a declaration form required under Indian tax law, specifically <a href="https://www.incometax.gov.in/iec/foportal/help/all-topics/statutory-forms/popular-form/form15ca-faq#:~:text=As%20per%20Section%20195%2C%20every,be%20furnished%20in%20Form%2015CA.">Section 195 of the Income Tax Act</a>. It must be submitted by any person making payments to non-residents or foreign companies when such payments are deemed taxable in India. This form ensures that the correct amount of tax is deducted at source (TDS) before the payment (remittance) is made.

Form 15CA helps the Income Tax Department monitor foreign remittance details and their tax implications. It also assists non-residents in claiming credit for taxes deducted in India.&nbsp;

TDS rate declaration: The form requires disclosing the TDS rate applicable to the payment. This rate may be based on either <a href="https://www.incometax.gov.in/iec/foportal/help/all-topics/statutory-forms/popular-form/form15ca-faq#:~:text=As%20per%20Section%20195%2C%20every,be%20furnished%20in%20Form%2015CA.">Section 195 of the Income Tax Act</a> or any lower rate specified in a relevant DTAA.

Deductions: The payer must ensure that TDS is deducted at the source before paying, reflecting compliance with Indian tax obligations.

Form 15CB is a certificate from a Chartered Accountant (CA) required before filing Part C of Form 15CA. This certificate ensures compliance with the Double Taxation Avoidance Agreement and Income Tax Act for accurate tax deductions on payments. When making taxable payments above ₹5 lakhs to non-residents, you must first obtain this CA certificate and then use it to file Part C of Form 15CA.

Quick note: A DTAA is an agreement between two countries that helps determine the tax rates and obligations when making cross-border payments. For example, when paying a US-based consultant, the India-US DTAA helps decide which tax rate applies to your payment and how much TDS needs to be deducted before sending the money abroad.

TDS rate certification: In Form 15CB, the CA certifies the TDS rate applied to the payment. The rate could be determined as follows:

Deductions overview: The CA also confirms that all necessary deductions have been made according to legal requirements before remittance.

Let's break down Form no. 15CA into simple, digestible parts. Think of it as a document with four versions (A, B, C, and D), each for specific situations.

Part A: For taxable payments up to ₹5 lakhs

Use this version when you've got special permission from the tax officer (Assessing Officer) under <a href="https://www.incometax.gov.in/iec/foportal/help/all-topics/statutory-forms/popular-form/form15ca-faq">Section 195(2), 195(3), or 197</a> to:

Think of it as a pre-approved tax discount. When filing, you'll need to show the official permission letter.

Details required: Payer (remitter) and recipient (remittee) information and the AO's order details.

This is for bigger payments. You'll need to use this when:

Important: You'll need your CA to provide Form 15CB first before filing this part. This extra step helps verify your tax calculations for larger amounts.

Use this when your payment isn't taxable in India. For example:

Even though these payments might be exempt, you must declare them through Part D of Form 15CA.

💡Quick Tip: When you're paying non-resident service providers (like international consultants, developers, or designers):

Remember: These forms are for sending money abroad, not for receiving international payments.

Form 15CA is not required in the following situations:&nbsp;

Form 15CB is not required in the following situations:&nbsp;

Existing AO certificate: If a certificate has been obtained from the Assessing Officer under Sections 195(2), 195(3), or Section 197, indicating that TDS does not apply or can be reduced, then Form 15CB is not required.&nbsp;

As per&nbsp;<a href="https://incometaxindia.gov.in/Rules/Income-Tax%20Rules/103120000000007406.htm">Rule 37BB</a>, the following payments do not require Form 15 CA CB:

What Details are Required to File Form 15 CA CB?

The details required to file form 15CA are as follows:&nbsp;

The details required to file form 15CB are as follows:&nbsp;

Note: These supporting documents help your CA verify the applicable tax rates and prepare Form 15CB, but they're not directly submitted with the form.

How to file Form 15 CA and CB Online?&nbsp;

The steps to file Form 15CA online are as follows:&nbsp;

Step 1: Access the e-filing portal. Visit the <a href="https://www.incometax.gov.in/iec/foportal/">Income Tax forms page in the e-filing portal</a> and log in using your credentials (PAN, user ID, and password).

Step 2: Navigate to form selection. Go to e-File &gt; Income Tax Forms &gt; File Income Tax Forms, and select Form 15CA from the list.

Step 3: Choose the appropriate part of Form 15CA. Once at the instructions page, select the relevant part based on your situation: Part A for such remittances not exceeding ₹5 lakh, Part B if you have obtained a certificate from the Assessing Officer under Sections 195(2), 195(3), or 197, Part C for remittances exceeding 5 lakh rupees that are chargeable to tax (requires prior submission of Form 15CB), or Part D for remittances not chargeable to tax.

Step 4: Fill in the required details. In the selected part of Form 15CA, enter all necessary information as prompted, including details of both sender and receiver, nature of payment, and remittance amount.

Step 5: Verification and submission. Complete any required verification sections and submit Form 15CA online. A confirmation pop-up will appear upon successful submission, and you should receive an acknowledgement at your registered email address.

Step 6: Accessing submitted forms. After submission, you can view your submitted Form 15CA under the "Worklist" tab by selecting "For Your Information."

The steps to file Form 15CB online are as follows:&nbsp;

Step1: Preparation by chartered accountant (CA)&nbsp;

The CA must be registered on the Income Tax e-filing portal and have a valid Digital Signature Certificate (DSC). You must provide your CA with all necessary documentation to pay a non-resident.

The CA prepares Form 15CB, certifying that the payment complies with Indian tax laws and any applicable Double Taxation Avoidance Agreements (DTAAs).

Step 3: Log into the e-filing portal&nbsp;

The CA must log in using their credentials to visit the Income Tax e-filing portal.

Step 4: Access Form 15CB. After logging in, navigate to e-File &gt; Income Tax Forms &gt; File Income Tax Forms, and select Form 15CB from the list.

Step 5: Submission process Choose "Online" as the submission mode, enter the PAN of both the taxpayer and the CA, upload the prepared XML file generated from the downloaded utility, upload the DSC file generated using the DSC Management Utility, and click on the Submit button. You can also use the search box for any assistance.&nbsp;

Confirmation: Upon successful submission, a confirmation message and acknowledgment number (or transaction ID) will appear. The CA can view the uploaded Form 15CB under their dashboard. Keep the acknowledgement number for your future reference.&nbsp;

Receive International Payments Seamlessly with Skydo&nbsp;

Making international payments from India requires proper tax compliance through 15CA and 15CB documentation. Getting these right ensures smooth cross-border transactions and helps avoid regulatory issues.&nbsp;

Brands like Skydo simplify this process by providing instant FIRA documentation and GST-compliant invoicing for hassle-free global business payments.

Learn<a href="https://www.skydo.com/"> more about Skydo!</a>&nbsp;

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The Liberalised Remittance Scheme (LRS), introduced by the Reserve Bank of India (RBI) in 2004, transformed the way Indians send money abroad. Before LRS, transferring funds to support a student studying abroad or helping a relative was a cumbersome process filled with complex rules and lengthy procedures. With LRS, sending money abroad has become simpler and more accessible, especially for purposes like education, travel, and investments.

In this blog, we’ll explore everything about LRS, including its limits, permissible uses, tax implications, and how it simplifies outward remittance for Indian residents.

What is Liberalised Remittance Scheme (LRS)?&nbsp;

The Liberalised Remittance Scheme is a straightforward way for Indian residents to send money abroad. It allows you to transfer USD 250,000 each financial year without any hassles.&nbsp;

LRS is a part of the <a href="https://enforcementdirectorate.gov.in/fema">Foreign Exchange Management Act (FEMA)</a> passed in 1999. The FEMA regulations set the guidelines for foreign exchange management, in other words, how money flows in and out of India. In the case of LRS, it oversees how Indians remit money outside India.&nbsp;

LRS is open to all resident individuals in India, including minors. If a minor is making a remittance, their legal guardian needs to sign the declaration form to authorize it.

You can use LRS for a variety of purposes:

You can use LRS for capital and current account transactions within the overall limit of USD 250,000. For example, you can use LRS to pay USD 10,000 as education fees abroad and invest USD 30,000 in foreign stocks. Both are permitted transactions and do not breach the prescribed limit.

Here are three quick highlights about LRS that you should know:

Indian residents including minors can send money abroad under LRS. The sender must have a valid PAN card, a bank account in India and a passport. For minors sending money abroad, their legal guardian needs to sign the declaration form to authorize it.

However, note that LRS is not available for a corporate entity, partnership firm, HUF (Hindu Undivided Family), etc.&nbsp;

Which Transactions are Permissible Under LRS?

Here is the list of permissible current account transactions and capital account transactions under LRS:

Which Transactions are Prohibited Under LRS?

While the Liberalised Remittance Scheme (LRS) offers flexibility for sending money abroad, there are strict rules about what you cannot use it for. Here's a breakdown:

What are the RBI Guidelines for Outward Remittance?

In addition to what is permitted and prohibited under LRS, you must be mindful of the RBI guidelines for outward remittances. According to the RBI guidelines, outward remittance can be done via demand draft or opening an overseas bank account.&nbsp;

If you’re planning to do the latter, here are the steps you must follow:

Pick one branch of the AD bank to handle all your remittances under LRS for better tracking and compliance. You can check out the <a href="https://www.skydo.com/blog/compliance-guideline-for-inward-remittance">RBI guidelines for inward remittance right here.</a>

If you’re investing money overseas through LRS, then your profits from investments are taxable if the holding period:

Short-term (less than 2 years): According to the regular<a href="https://www.skydo.com/blog/tax-slabs-2023-24"> income tax slab</a> rates

If your remittance amount is more than INR 700,000, then you’re liable to pay a 5%<a href="https://www.skydo.com/blog/tcs-on-foreign-remittance"> TCS</a> (Tax Collected at Source). You can claim this TCS as a refund while filing Income Tax Returns (ITR) using Form 26 AS.

As LRS makes outward remittances a lot simpler, here are some of its biggest benefits:

This is probably the biggest benefit of LRS. With more than<a href="https://onestep.global/overview-of-the-indian-study-abroad-market/#"> 1 million</a> Indian students expected to travel abroad for overseas education in 2024, LRS will be their go-to channel to receive money from their families. This way they can take care of their tuition fees and living expenses without affecting their education.

LRS is convenient for those who travel overseas frequently. They could use it to pay for tickets, hotels, and other travel-related expenses

An investor could take advantage of LRS to diversify their investments abroad. They can invest in shares, mutual funds, bonds, and real estate to maximize their returns

LRS is the ideal avenue if you want to give gifts to your family members or relatives staying overseas. Likewise, you can also make donations to charitable organizations based outside of India

Medical treatments overseas are expensive and often come unannounced. But with the help of LRS, you can transfer money and pay for the bills in the medical institute. It’s also a payment option for those patients who have travelled abroad for specialized treatment

You can also send money to your relatives via LRS to help them meet their living expenses. This is highly useful when they’re going through financial difficulties.&nbsp;

What Happens if You Need to Remit More Than USD 250,000?

If you need to remit beyond the USD 250,000 limit under LRS, there are specific exceptions:

Always ensure you meet the necessary conditions or secure RBI approval for larger remittances.

Receive Foreign Payments in India seamlessly with Skydo

The Liberalised Remittance Scheme (LRS) streamlines outward remittances for resident Indians. As LRS falls under FEMA and operates within the RBI guidelines, it is one of the safest and most trustworthy solutions for sending money abroad. This is a huge relief for students studying overseas as their families can transfer money without hassles. The same applies to medical treatments in foreign lands or to help relatives meet their daily expenses.

Like LRS streamlines outward remittance, Skydo simplifies receiving international payments in India. It offers virtual accounts that allow you to receive money from international clients as if they’re making a local transfer. So when your clients make payments to your virtual accounts, they don’t have to incur the high costs like SWIFT fees associated with international payments.

In addition to that, your payments are converted to local currency based on live exchange rates so that you get the best value. Whether you’re an exporter or a freelancer, Skydo is the right partner to grow your business overseas.&nbsp;

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Sort codes are unique codes used by banks in the UK (United Kingdom) and Ireland to identify the banks and branches accurately. If you’re planning to open a UK bank account or use online banking facilities, learning about sort codes is essential. Electronic fund transfer systems in the UK like CHAPS, BACS, and Faster Payments also use sort codes.

This guide covers all the information you must know about sort codes including their definition, structure, and how to use them effectively.

A sort code is a 6-digit number code of a particular bank and its specific branch in the UK and Ireland. For example, 606004 is the sort code for the National Westminster Bank and London Bridge branch. 606008 is the sort code for the same bank but for the Maidstone branch.&nbsp;

So when you share your bank details with someone for any transactions in the UK and Ireland, you must share your sort code and account number with them. Similarly, when making online money transfers, you must ask for the beneficiary's sort code and account number. Be careful about using sort codes while making payments as incorrect sort codes could result in loss of funds.

Using a sort code is a necessary protocol when making an online payment or receiving money online in the UK or Ireland. The banking system in these countries relies on the sort code to process the payments efficiently and accurately.

Each bank sort code is made of three pairs of numbers. Each pair signifies a different component.&nbsp;

Let's take the example of the following Sort code and break it down:

A sort code is like your account’s address. With the help of sort codes, financial organizations in the UK and Ireland route the payments to the right destination accurately. If you use a wrong sort code, transactions could be delayed, misdirected or credited to the wrong account.&nbsp;

In addition to domestic transactions, the sort code works in conjunction with the<a href="https://www.skydo.com/blog/iban-number-meaning-full-form"> International Bank Account Number (IBAN)</a>. IBAN is used for cross-border payments and used as a standardised numbering system to identify international accounts.&nbsp;

An IBAN could contain up to 34 characters depending on the number of fields. The most common fields are country code, check digits, bank code, sort code, and bank account number.&nbsp;

&nbsp;GB&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; 92&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; BARC&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; 000102 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; 12345678

Country code &nbsp; &nbsp; &nbsp; Check digits &nbsp; &nbsp; &nbsp; Bank code&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; Sort code&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; Account number

Here's how you can find your Sort code:&nbsp;

Sort code and SWIFT code are not the same. Here are the key differences:

Sort code is a six-digit number used to identify bank accounts in the UK and Ireland. With the help of sort codes, banks could process the transactions accurately.&nbsp; Sort codes are used for domestic transactions in the UK and Ireland like sending money online or setting up standing orders for direct debit.&nbsp;

<a href="https://www.skydo.com/blog/swift-money-transfer-ultimate-guide">SWIFT</a> code is an abbreviation for the Society for Worldwide Interbank Financial Telecommunication. SWIFT is an alphanumeric code used globally to identify international banks and other financial institutions.&nbsp;

SWIFT code is useful for receiving money from overseas or making international payments. If you’re buying goods from a foreign vendor, you must ask for their SWIFT code to make the payment.&nbsp;

Sort code is not used in India.<a href="https://www.skydo.com/blog/is-ifsc-and-swift-code-same"> IFSC</a> (Indian Financial System Code) is used to make domestic financial transactions in India via various internet payment mediums like RTGS, NEFT, and IMPS.

The Reserve Bank of India (RBI) assigns IFSC to banks and monitors the banking operations closely. This oversight by RBI ensures a smooth and secure banking environment. Your bank’s IFSC will be printed on the passbook and chequebook. Alternatively, you can also check the bank’s website.&nbsp;

An IFSC is made of 11 alphanumeric characters identifying the bank and its branch accurately. For example, SBIN0070001 is the IFSC for the SBI Bank, Mumbai (main branch).

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If you work with UK-based clients, banks are one of the most reliable ways to receive payments. However, banks deduct a host of fees like currency conversion charges, SWIFT fees, and other charges levied by participating banks before crediting the amount to your account.

You can avoid these high amounts of deductions by choosing other reliable platforms like Skydo. Skydo creates virtual accounts which are electronic accounts with a unique 18-digit code linked to your bank account.&nbsp;

Skydo charges flat costs, real-time exchange rates, and no hidden fees or extra costs. Visit<a href="https://www.skydo.com/"> Skydo</a> to learn more and sign up for your international virtual account for free.

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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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