P1307 Purpose Code: Receipts on account of migrant transfers including Personal Effects

Purpose code P1307 is used when someone relocating to India brings their money and belongings with them.

What is the P1307 purpose code?

Purpose code P1307 covers what moves with a person when they change where they live. Someone relocating to India brings money, and often household goods, vehicles and other belongings, and the description names personal effects alongside the funds for that reason. What separates this from the family maintenance code is whether the person has moved: a non-resident sending money home while remaining abroad is making an ongoing transfer, while someone relocating is making a one-off transfer of their own position. The second usually ends the first. Under RBI FEMA guidelines, this inward payment is classified under Secondary Income and reported accordingly.

When to use P1307 purpose code?

This code applies where a person is changing their country of residence to India and bringing their money and belongings with them. The bank applies it when recording the transfer. What settles it is the change of residence itself: if you remain abroad and are sending money to family or into savings in India, that is a different code, even where the amounts are similar and the account is the same.

When to use a different code:

• Use P1301 when you remain a non-resident and are sending money home for family maintenance or savings
• Use P1302 when the money is a gift or personal donation rather than your own funds moving with you
• Use the matching S-code when money is being sent abroad rather than received

Who typically uses P1307 purpose code

People moving their residence to India, principally returning non-resident Indians bringing home the funds and belongings they accumulated abroad, along with others relocating here. The code concerns individuals and the event of relocation rather than any business activity.

Examples of transactions covered under P1307 purpose code

• Funds brought to India by a returning non-resident on permanently relocating
• Money transferred as part of a move of residence to India
• Value of household goods and personal effects shipped when relocating
• Proceeds of overseas accounts moved to India on ceasing to live abroad

When NOT to use P1307 purpose code

• You remain a non-resident and are sending money home rather than relocating (use P1301)
• The money is a gift or personal donation from someone else rather than your own funds moving with you (use P1302)
• The money is income earned from abroad, which reports under the income or services codes depending on its source
• Money is being sent abroad rather than received (use the matching S-code)

Documents required for P1307 purpose code

Migrant transfers usually involve less documentation than commercial receipts, but the bank will want to establish the change of residence. In general terms it will look for the following.

How is a P1307 Purpose Code declared?

The process is short, since the transfer accompanies a move rather than a transaction.

1. Change your residence: Relocate to India and establish your position as a resident.
2. Move your funds and belongings: Transfer the money and ship the personal effects that are moving with you.
3. Declare the purpose: State the purpose of the inward remittance on your bank's form, identifying it as a migrant transfer.
4. Provide supporting documents: Supply evidence of the change of residence and details of personal effects where relevant.
5. Reporting is completed: The transfer is documented and reported under FEMA.

Common mistakes to avoid while using P1307 purpose code

A few common slips can cause reporting problems.

1. Continuing to use the maintenance code after moving: Coding transfers as family maintenance once you have relocated, when that code covers a non-resident sending money home and this one covers the move itself.
2. Using P1307 while still abroad: Applying the migrant transfer code before actually changing residence, when the change of residence is what the code records.
3. Coding income as a migrant transfer: Including earnings from work or investments in the transfer, when income reports under its own codes whatever else is moving at the same time.
4. Incomplete evidence of the move: Leaving the bank unable to establish that residence has changed, so the transfer is queried.
5. Overlooking personal effects: Failing to mention belongings moving alongside the funds, when the description covers both.
6. Using an inward code for an outward payment: Applying a receipt code to money being sent out instead of the matching outward code.

How Skydo helps you receive international business payments

P1307 covers personal transfers accompanying a change of residence, which Skydo does not process. If you run a business in India invoicing clients abroad, here is how Skydo helps you get paid.

1. Complete onboarding: Share PAN, Aadhaar, and Indian bank details. Setup is fully online.
2. Get virtual account details: Receive account details in USD, GBP, EUR and other currencies your clients pay in.
3. Your client pays like a local: They send a domestic transfer in their own country, no SWIFT and no wire fee on their end.
4. FIRA is generated automatically: Free e-FIRA on every payment, stored in your dashboard for GST and audits.
5. INR settles within 24 hours: Mid-market rate with a flat, visible fee, no FX markup.