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Receiving international payments in India can feel complex, between traditional bank wires, PayPal, and new-age fintech platforms, each method comes with its own process and costs. Here’s a quick step-by-step overview to help you understand how it works:

How to Receive International Payments in India: Step-by-Step

This guide goes beyond the basics, read on as we break down each method, compare fees, timelines, and real-world use cases, so you can choose the best solution for your business. (Updated for 2025)

&nbsp;How to Accept International Payments in India?

Here are the main ways to receive international payments in India

Before deciding on your preferred way, it is important to evaluate each method on parameters like timeline, fees etc to find out which fits your needs the best. So let's understand these parameters in some detail:

Things to Note Before Receiving International Payments in India

Unfortunately, international money transfers, especially payments aren’t as straightforward as domestic ones. Different countries have different regulations and multiple financial institutions are involved in the process as well. 

So here are a few things to watch out for before receiving payments from abroad:

In India, we’ve become accustomed to instant payments thanks to UPI—, ust a quick scan, and it's done. However, international payments are a different story and the settlement time depends on the mode of payment primarily. For example, banks may take upto 7 business days to settle your payment while international virtual accounts can do it within 48 hours.

International payments often undergo strict scrutiny due to concerns around money laundering and terror financing. Hence, when choosing your international payment platform, check if it is approved by the RBI, <a href="https://www.skydo.com/blog/all-you-need-to-know-about-firc-a-complete-guide">provides FIRA</a>&nbsp;and has the necessary security certifications. For example, In January 2025, Skydo received <a href="https://economictimes.indiatimes.com/tech/startups/skydo-secures-rbi-licence-to-offer-cross-border-payments/articleshow/117413507.cms?from=mdr">in-principle authorisation from the Reserve Bank of India (RBI) </a>to operate as a Payment Aggregator-Cross Border (PA-CB) entity ensuring the highest level of compliance and security.

Charges are one of the key factors when deciding on how to receive international payments in India. You need to be aware of the fees associated with each payment platform and make sure there are no hidden fees that are sneaking in. For example, most platforms including banks apply a markup on the ongoing exchange rate, if the actual rate is 1 USD = ₹84, banks might offer ₹82, with the small difference adding up over multiple transactions. Similarly, platforms like <a href="https://www.skydo.com/blog/top-paypal-india-alternatives-for-international-payment">PayPal </a>charge a 4% currency conversion fee, along with an additional 4.4% transaction fee and a fixed fee, further eating into your payout. While some costs are unavoidable, being aware of these charges allows you to make smarter choices and maximize your earnings by opting for more cost-effective payment methods.

Do I Have to Pay Tax on International Payments in India?

Exports in India are considered zero-rated supplies, meaning you don't have to pay <a href="https://www.skydo.com/blog/how-does-gst-affect-foreign-payments">GST on your export income </a>if you receive your payment in foreign currency.&nbsp;

However, note that regardless of whether you receive a salary from an overseas employer or payments from foreign clients as a freelancer or business, your income will be taxed in India based on the applicable income tax slab rates.

&nbsp;Best Way to Receive International Payment in India

There’s no one-size-fits-all answer to the question of how to receive international payments in India, it all depends on what matters most to you. Whether it’s faster settlement, favourable exchange rates, easy compliance, or other factors, the right option will vary.&nbsp;

 In this section, we’ll break down the different payment methods based on these key parameters to help you decide which is the best way to receive international payments in India.&nbsp;

Banks are often the traditional answer to the question of how to receive international payments in India, and online banking has made money transfer services more convenient as well. However, here are a few things that you need to know before deciding if banks are the right fit for you to receive international payments:

<a href="https://www.skydo.com/blog/international-wire-transfer-all-you-need-to-know">International bank wire transfers </a>can take upto 5 business days or even longer&nbsp;due to reasons like multiple intermediary banks, bank holidays, incorrect details etc.&nbsp;

Banks issue<a href="https://www.skydo.com/blog/all-you-need-to-know-about-firc-a-complete-guide"> FIRA for every foreign payment,</a> but it is not a default or free service. You have to follow up with your bank to get your FIR,A and banks often levy a fee for the same.&nbsp;Axis Bank, for example, charges INR 250 for every FIRA and an additional INR 100 for a duplicate FIRA.

Bank fees for international payments include a <a href="https://www.skydo.com/blog/swift-money-transfer-ultimate-guide">SWIFT fee,</a> which, while levied on the sender, is often passed on to the receiver. It might cost your client anywhere around USD 15-50 to send the international payment and more often than not, it will be passed on to you.

Further, as we've mentioned, banks mostly levy a <a href="https://www.skydo.com/blog/forex-markup-fee-explained">forex markup,</a> giving you a lower exchange rate than the market exchange rate.&nbsp;Let’s say you receive $5,000, and the real exchange rate is 1 USD = ₹84, so you expect ₹420,000. Instead, the bank offers a lower rate of ₹82 per USD, leaving you with ₹410,000, a loss of ₹10,000 on just one transaction.&nbsp;Beyond SWIFT and forex fees, banks tend to charge extra fees for various services. For example,&nbsp;Axis Bank&nbsp;charges ₹250 for issuing a FIRA and ₹500 to track SWIFT payments.

<a href="https://www.skydo.com/blog/paypal-in-india-charges-review-alternatives">PayPal's</a> credibility and global reach make it a popular choice for online money transfers as well as for receiving international payments in India. So is Paypal the answer to, "How to receive international payments in India?" Let's find out:&nbsp;

If your client pays you via PayPal, the amount appears in your PayPal account almost instantly, but it can take up to 5 business days to reach your bank account.

PayPal provides a monthly digital FIRA to businesses and freelancers. This FIRA covers all international transactions from the previous month, and it is only available by the 15th of the subsequent month.

PayPal fees for receiving international payments includes a 4.40% transaction fee, plus a&nbsp;fixed fee&nbsp;depending on the currency of the transaction along with 4% currency conversion fee to the prevailing exchange rate.&nbsp;For example, if the current market rate is INR 84 per USD, PayPal’s effective exchange rate would be 4% less, which is INR 80.64.

Virtual International Bank Accounts&nbsp;

New-age fintech platforms like Skydo,<a href="https://www.skydo.com/blog/transferwise-india-features-benefits-pros-cons"> Wise</a>, and <a href="https://www.skydo.com/blog/payoneer-payment-gateway-features-fees">Payoneer </a>are making cross-border payments seamless with international virtual accounts. These platforms provide users with<a href="https://www.skydo.com/blog/virtual-account-numbers"> virtual bank accounts</a> in countries like the US, UK, and Australia. Clients in these countries can send payments to these virtual accounts as local transfers, avoiding the hassle and cost of international transfers.

The platforms then consolidate these local payments and transfer them to the recipient’s personal bank account.&nbsp; Let's explore whether virtual accounts could be the answer to how to receive international payments in India.

Once the payment hits your virtual account, it’s quickly transferred to your personal bank account. For example, Wise deposits funds within 0-2 business days, while Payoneer and Skydo mostly settle payments within 24-48hours,&nbsp;all much faster than traditional bank transfers..

Most platforms offering international virtual accounts in India&nbsp;also provide FIRA to their users.&nbsp;While Wise charges a fee for issuing FIRA, both Payoneer and&nbsp;Skydo offer it free&nbsp;and instantly, making the process smoother and more convenient for users.

Since virtual bank accounts skip&nbsp;SWIFT transfers,&nbsp;no SWIFT fees apply. However, each platform has its own charges:

For a detailed breakdown, check <a href="https://www.skydo.com/blog/payoneer-fees-india-guide" target="_blank">Payoneer’s fees here.</a>

<a href="https://www.skydo.com/blog/wise-transfer-charges-in-india" target="_blank">You can read more about Wise’s pricing right here.&nbsp;</a>

Remittance Platforms like Wise and Western Union

P2P transfer services like Wise and Western Union let individuals abroad send money directly to Indian bank accounts, with conversion at competitive rates and delivery usually within a day. Wise supports multiple currencies and offers transparent fees, while Western Union provides both bank transfers and cash pickup options at thousands of locations. These services are best for personal remittances, not business payments, due to compliance and documentation limits.

Google Pay, through its partnership with international money transfer services like Wise and Western Union, now allows users in India to receive cross-border payments directly into their bank accounts using UPI.&nbsp; While convenient for individuals, this option isn’t designed for business payments or freelancers, and transaction limits may apply as per RBI guidelines.

Which platform should you choose to receive international payments in India?

If you’re a large business handling high volumes of cross-border payments, banks might be the answer to how to receive international payments in India. They often offer competitive exchange rates and personalized services that smaller clients might not receive.

Many businesses and freelancers also prefer PayPal for its global credibility and acceptance, offering a payment option their international clients are familiar with.

For individual freelancers and small to medium businesses, international virtual accounts are often the most practical choice. These fintech platforms provide a seamless payment experience without the hassle of dealing with banks. By bypassing the SWIFT network, they eliminate SWIFT fees and typically offer faster settlements. Many platforms also include FIRA to simplify compliance. However, before deciding on how to receive international payments in India, carefully review their fees, foreign currency conversion rates, and customer support to ensure they meet your needs.

Here's a quick comparison chart to help you decide the best way to accept international payments in India based on your needs:

Take Rohan, a freelancer in India who <a href="https://www.skydo.com/blog/how-to-receive-money-from-usa-to-india">regularly invoices clients in the US </a>and UK. For his $5,000 project payment, platforms like Skydo allow him to receive funds quickly, with zero hidden forex markups and instant access to FIRA,&nbsp;meaning he keeps more of what he earns, and compliance is hassle-free. This transparency and speed are ideal for freelancers and small businesses managing frequent, mid-sized payments from abroad. On the other hand, for large enterprises handling high-value transactions, often in the hundreds of thousands, traditional banks, with their dedicated relationship managers and tailored corporate solutions, can sometimes offer negotiated rates or advanced treasury services better suited to those needs.

In short, while platforms like Skydo are a game-changer for small businesses and freelancers, banks may still be preferable for companies with very large, complex payment volumes.

How to Receive International Payments in India with Skydo?

While there are several ways to receive international payments in India, virtual bank accounts are quickly becoming the preferred option for businesses and freelancers due to their simplicity and affordability. With Skydo, setting up an international account takes just five minutes, helping you easily do business in markets like the US, Europe, Singapore, and Australia.

Skydo streamlines your payments by offering live Forex rates with no hidden fees or currency markups. To keep things hassle-free and compliant with RBI regulations, you’ll get instant FIRA downloads after every transaction. Plus, each user benefits from a dedicated representative who’s ready to provide guidance and support whenever you need it.

If you're looking to avoid high fees on international transfers and make your foreign payments seamless and compliant, Skydo is the perfect solution!

Learn the best methods to receive international payments in India – from PayPal and wire transfers to virtual foreign accounts. Understand fees, speed, and how to choose the right option

How to Receive International Payments in India: Explained

How to receive international payment in India

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It is ironic that in the era of instant payments, business owners still feel stressed about sending or receiving payments across borders.&nbsp; At Skydo, our&nbsp; objective has always been clear: "How can we take the stress out of international business payments?" Every discussion we have, and every feature we build, is geared towards that singular goal.

Today, we are thrilled to announce that Skydo has raised USD 5M in a pre-Series A round led by Elevation Capital, bringing us several steps closer to achieving our vision. We extend our heartfelt gratitude to all our investors, partners and customers for their immense faith and belief in us.

Skydo's journey began with two friends, Movin Jain and Srivatsan Sridhar, who united to answer a critical question: "How can we make global payments as seamless as UPI?" Srivatsan's managerial experience in his family's automotive export business gave him first-hand insight into the challenges exporters face with international payments. He recalls having to cancel a large and profitable contract with a Turkish customer due to challenges in receiving payments.. His deep empathy for the problem, combined with Movin's decade-long experience in tech and fintech, formed the perfect team to build Skydo.

Like most startups, the path to building Skydo has been far from easy and it continues to be so. We officially began in April 2022, and since then, securing our first client, first transaction, and first employee has been anything but a cakewalk. Srivatsan and Movin travelled across the country, speaking with exporters to gain invaluable insights into their struggles with international payments.

An entrepreneur from Ahmedabad shared his frustration about paying nearly 7-8% of his hard-earned foreign income to his payment service provider. Similarly, an IT business founder from Karnal expressed willingness to pay a flat fee but questioned why he had to share a percentage of his income. These interactions underscored the depth of the problem they set out to solve, driving their commitment to creating a more seamless and cost-effective solution for cross-border payments payments. From making cold calls and giving demos to spending sleepless nights perfecting the technology behind the product, the small founding team did it all. However, it wasn't all work and no play. The founders fondly recall how a full day of work was put on hold after indulging in ghee-laden parathas at Murthal, after meeting some exporters in Panipat. These moments of camaraderie kept the team bonded and motivated through the many challenges of building a company.

Finally, in November 2022, Skydo executed its first transaction, and since then, there has been no turning back. From November 2022 to August 2024, we have enabled 5,000+ businesses to simplify their international payments. We process over USD 100M of payments annually, and we are just getting started.&nbsp;

As a young company in the cross-border payments space, partnering with established banks and navigating regulations and compliance has been a constant learning experience. Being one of the first companies in this sector, we didn't have a blueprint to follow. Much of our processes and systems have been developed through trial and error. However, our customers' faith in us has always kept us going.

We are genuinely passionate to solve for our customers—and place their needs at the centre of everything we do. Our customers have recognised and appreciated our continuous efforts to bring them the best. It is their constant inputs and feedback that has inspired us to constantly improve our product.

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If you imagine the team behind Skydo as a group of ultra-serious professionals with their noses buried in computers all day, you couldn’t be more wrong. As cliché as it sounds, we truly believe in working hard and playing harder. Lively banter, playing sports together, celebrating special moments, great food, and frequent get-togethers are all part of life at Skydo. We’re committed to creating a work environment where our team genuinely enjoys coming to work.

This latest round of funding helps us take our commitment to solve for international payments one step further. In the coming months, we will be launching many new features - like card payments, import payments from India, deeper integration with accounting platforms, and expanding to support e-commerce, to name a few. We will also be expanding globally, to support exporters in more countries. As always, our endeavour will be to take care of their payments challenges, allowing businesses to focus on what they do best - grow their business globally!

At Skydo, we are on a mission to simplify international payments. Learn more about our latest fund raise and the story behind Skydo.

Skydo: Simplifying International Payments

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Businesses and individuals that send or receive payments in foreign currencies must understand the currency trends and the affective factor to predict an ideal currency exchange rate.&nbsp;

Whether you're a seasoned investor, a business leader, or someone keen on understanding the evolving financial ecosystem, this blog highlights the potential trends and influences affecting the currency exchange rate, valuation, and a table with the currency exchange forecast this year.&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; 

The United States economy saw a drop during the COVID-19 pandemic. However, it has witnessed a strong GDP recovery as it has outperformed expectations in three key dimensions: slowing inflation, labour market resilience, and economic output.&nbsp;

The US GDP has increased to <a href="https://home.treasury.gov/news/featured-stories/the-us-economy-in-global-context#:~:text=Strong%20U.S.%20GDP%20Recovery&amp;text=In%20most%20advanced%20economies%2C%20real,higher%20than%20in%20Q4%202019.">6.1% in Q4 of 2023</a>, which is the highest among all major countries. Inflation fell to <a href="https://www.focus-economics.com/countries/united-states/">3.2% in October</a> from 3.7% in September, below the market estimation of 3.3%.&nbsp;

<a href="https://capex.com/en/overview/usd-to-inr-forecast">The projected USD to INR forecast</a> against INR is mildly bearish for 2024, as experts believe that the 1-month target is 83.00, the 3-month target is 82.50, the 6-month target is 81.50, and the 12-month target is 81.00.&nbsp;

Source: <a href="https://www.bookmyforex.com/currency-converter/usd-to-inr/forecast/">https://www.bookmyforex.com/currency-converter/usd-to-inr/forecast/</a>&nbsp;

The UK economy has beat expert estimates to perform better than expected in 2023. At the start of the year, it was expected that the UK's GDP was expected to fall by 1%. However, experts now expect the <a href="https://kpmg.com/uk/en/home/insights/2018/09/uk-economic-outlook.html#:~:text=The%20UK%20economy%20has%20performed,by%206.3%25%20in%20Q3%202023.">GDP to grow by 0.5% </a>by the end of 2023.&nbsp;

On a year-on-year basis, business investment in the UK grew by 6.3% in Q3 of 2023, and household consumption was up by 0.3%. Furthermore, the UK’s GDP is thriving based on the headline CPI inflation, which decreased<a href="https://kpmg.com/uk/en/home/insights/2018/09/uk-economic-outlook.html#:~:text=The%20UK%20economy%20has%20performed,by%206.3%25%20in%20Q3%202023."> to 4.6% in October.&nbsp;</a>

<a href="https://longforecast.com/gbp-to-inr-forecast-2017-2018-2019-2020-2021-pound-to-rupee">The pound forecast</a> against INR is moderately bullish for 2024 and can reach 105.69 in the next month, 108.86 in three months, 106.07 in six months, and 110.44 by the end of 2024.

Source: <a href="https://www.bookmyforex.com/currency-converter/gbp-to-inr/forecast/">https://www.bookmyforex.com/currency-converter/gbp-to-inr/forecast/</a>&nbsp;

<a href="https://www150.statcan.gc.ca/n1/pub/36-28-0001/2023010/article/00006-eng.htm">The Canadian economy</a> showed a mild slowdown toward mid-2023 owing to higher borrowing costs. The employment rate is also declining as the labour demand is lower than last year. However, inflation eased to <a href="https://www.focus-economics.com/countries/canada/">3.8% in September,</a> down from 4% in August.

As of the end of 2023, Canada's GDP is estimated to be $1.919 trillion, and the nominal GDP was approximately $2.117 trillion, making it the world's tenth-largest economy.

<a href="https://longforecast.com/cad-to-inr-forecast-2017-2018-2019-2020-2021-canadian-dollar-to-rupee">The CAD forecast</a> for the dollar rate against INR is mostly flat for 2024, as experts believe that the 1-month target is 63.05, the 3-month target is 64.21, the 6-month target is 63.38, and the 12-month target is 64.26.&nbsp;

Source: <a href="https://www.bookmyforex.com/currency-converter/cad-to-inr/forecast/">https://www.bookmyforex.com/currency-converter/cad-to-inr/forecast/</a>&nbsp;

<a href="https://economy-finance.ec.europa.eu/economic-surveillance-eu-economies/germany/economic-forecast-germany_en">Germany’s economy</a> is facing multiple challenges as it is witnessing a decline in industrial production along with a decreasing construction sector. Currently, as per the European Commission, Germany’s GDP is expected to shrink by 0.4% by the end of 2023. However, it expects Germany’s inflation to decrease and reach 6.4% by the end of 2023.&nbsp;

<a href="https://longforecast.com/euro-to-inr-forecast-2017-2018-2019-2020-2021-eur-to-indian-rupee">The Euro forecast</a> against INR is bullish for 2024, as experts believe that the 1-month target is 92.97, the 3-month target is 96.07, the 6-month target is 94.22, and the 12-month target is 95.21.&nbsp;

Source: <a href="https://www.bookmyforex.com/currency-converter/eur-to-inr/forecast/">https://www.bookmyforex.com/currency-converter/eur-to-inr/forecast/</a>&nbsp;

<a href="https://economictimes.indiatimes.com/topic/uae-economy">The United Arab Emirates (UAE) GDP</a> is one of the fastest growing and is the second-largest economy in the Middle East. In 2023, the UAE witnessed a substantial rise of 3.7% in its GDP in the first half of the year.&nbsp;

Currently, the International Monetary Fund (IMF) expects the UAE’s economy to grow at a rate <a href="https://www.trade.gov/knowledge-product/united-arab-emirates-market-overview">of 4.2% by the end of 2023</a>, with the labour force participation rate expected<a href="https://thedocs.worldbank.org/en/doc/65cf93926fdb3ea23b72f277fc249a72-0500042021/related/mpo-are.pdf"> to reach 82.7</a>%.&nbsp;

The<a href="https://dollarrupee.in/aed-to-inr-today-forecast"> Dirham (AED) forecast</a> against INR is mostly flat for 2024 and can reach 22.50 in the next month, 22.59 in three months, 22.86 in six months, and 22.68 by the end of 2024.&nbsp;

Source: <a href="https://www.bookmyforex.com/currency-converter/aed-to-inr/forecast/">https://www.bookmyforex.com/currency-converter/aed-to-inr/forecast/</a>&nbsp;

<a href="https://www.abs.gov.au/statistics/economy/national-accounts/australian-national-accounts-national-income-expenditure-and-product/latest-release">The Australian economy</a> performed slightly positively as of September 2023, as the GDP grew to 0.2% due to higher capital investment and increased government consumption. However, the growth rate has slowed due to cost of living pressures and higher interest rates.&nbsp;

Currently, Australia is the <a href="https://www.imf.org/en/News/Articles/2023/10/31/cs103123-australia-staff-concluding-statement-of-the-2023-article-iv">14 largest economy worldwide</a> by nominal GDP and has shown improved performance as unemployment has been low and the industrial output is above potential.&nbsp;

The <a href="https://longforecast.com/aud-to-inr-forecast-2017-2018-2019-2020-2021-australian-dollar-to-indian-rupee">AUD forecast</a> against INR is slightly bearish for 2024, as experts believe that the 1-month target is 58.64, the 3-month target is 59.62, the 6-month target is 58.26, and the 12-month target is 56.84.

Source: <a href="https://www.bookmyforex.com/currency-converter/aud-to-inr/forecast/">https://www.bookmyforex.com/currency-converter/aud-to-inr/forecast/</a>&nbsp;

Factors Influencing Currency Trends&nbsp;

Analysing currency trends is vital if you have exposure to international currencies, as the currency exchange rates fluctuate in real-time, resulting in increasing or decreasing the money you send or receive. However, to analyse currency trends effectively, it is vital first to understand the factors that influence currency trends and result in real-time currency exchange rate fluctuations.&nbsp;

Here are the factors influencing currency trends:&nbsp;

A country with stable economic conditions witnesses a lower currency exchange rate fluctuation than a country going through an economic slowdown.&nbsp;

Countries with higher GDP growth rates often experience stronger currencies as they indicate a robust and expanding economy, attracting foreign investment. Factors such as manufacturing and services PMI, industrial production, and consumer confidence can also affect currency trends.&nbsp;

If a country has a higher unemployment rate, the local currency witnesses a weak status against other currencies of countries with a lower unemployment rate, as higher unemployment rates may indicate economic weakness.&nbsp;

Furthermore, currency values are affected by how well a country manages economic factors such as inflation and deflation. Here, a country’s central bank is responsible for managing both factors to ensure a stable currency value.&nbsp;

The political landscape of a country influences the currency as it reciprocates with the mindset of consumers based on how they think the economy will perform. Political stability fosters investor confidence, positively impacting currency values. However, if a country is politically uncertain, the currency trend may turn negative.&nbsp;

Furthermore, Political events, such as elections or government instability, can lead to currency fluctuations owing to economic and geographical uncertainty. For example, foreign institutional investors refrain from investing during elections as the government may change, bringing new rules that may further add to currency fluctuations.&nbsp;

A country’s central bank is the main regulatory authority that manages and regulates the money flow in the economy. For example, in India, the RBI manages the money flow by increasing or decreasing the key interest rates, such as repo or reverse repo rates. Higher interest rates attract foreign capital, increasing demand for the currency and strengthening the currency value.&nbsp;

However, at times of recession, the central banks can lower the key interest rates to inject money into the economy and ensure people have more disposable income. However, this can increase the supply and result in currency depreciation.&nbsp;

4. Technological advancements and market innovations

Currency trends are generally positive for a technologically advanced and innovative country. Technological advancements can affect a country's economic competitiveness, influencing its currency. Innovation and technological progress can attract investment and impact currency values.

For example, a country embracing new technologies such as blockchain and digital currencies can positively influence traditional currency markets, strengthening the currency valuation.&nbsp;

Furthermore, a country with new-age fintech innovation through fintech firms can affect the efficiency and accessibility of financial markets, potentially influencing currency trends.&nbsp;

Currency trends and forecasts, such as USD to INR history, are subject to a variety of factors, and while analysts strive to provide accurate predictions, there are always uncertainties in the global economic landscape. For example, most currency trend-affecting factors are dynamic and can change based on unforeseen economic events.&nbsp;

Unexpected economic developments, such as natural disasters, economic crises, or sudden changes in global demand, can disrupt currency trends. Furthermore, political instability, conflicts, or unexpected geopolitical events can significantly and suddenly impact currency values.&nbsp;

Businesses and investors can mitigate the negative effects of influencing factors by diversifying their portfolios across different asset classes, diligently assessing risks, and staying informed about market trends. Adopting a long-term perspective, seeking professional advice, and maintaining cash reserves provide additional tools for navigating market fluctuations.

International currencies trade in pairs, which means that their value is compared against another currency to determine how much one has to pay to get the desired foreign currency account. For individuals and businesses with international exposure and dealing in foreign currencies, it is vital to understand the factors that can affect the currency exchange rate.&nbsp;

As currency value fluctuates in real-time, it is crucial to understand the currency trends to predict if the foreign currency you hold can increase or decrease in value. Understanding these currency trends can allow you to determine the ideal time to convert the currency into INR and get the most amount for the foreign currency.&nbsp;

If you receive payments in foreign currencies, you can create an account on Skydo. It creates a virtual currency account, which you can use to hold foreign currencies and convert them at the best currency exchange rate.&nbsp;

Q1. What are the key factors influencing the 2024 forecast for USD, Pound, CAD, Euro, Dirham, and AUD?

Ans: The factors include global economic indicators, geopolitical events, central bank policies, trade agreements, and specific regional factors impacting the USD, Pound, CAD, Euro, Dirham, and AUD.&nbsp;

Q2. How can investors and businesses use the 2024 currency forecast to create their strategies?&nbsp;

Ans: Whether you're a currency trader, investor, or business leader, understanding the forecasted trends can assist in making informed decisions and adapting strategies to the anticipated currency movements in the year ahead. Hence, understand the factors that can influence currency trends in detail and make strategies accordingly.&nbsp;

Q3. What are some factors other than economic factors that could affect currency movements?

Ans: Some factors are market sentiment, currency manipulation, health crisis, geological tensions, and technological advancement.

Stay ahead by forecasting 2024 currency exchange rates for USD, Pound, CAD, Euro, Dirham, and AUD, and make informed financial decisions

A Quick Guide to Forecasting Currency Exchange in 2024

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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. 

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