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

Exporters have to face these and many more challenges while receiving global payments.

According to the <a href="https://www3.weforum.org/docs/WEF_Addressing_E-Payment_Challenges_in_Global_E-Commerce_clean.pdf">International Trade Centre (ITC) survey,</a> one of the biggest challenges for exporters in receiving online payments is inadequate links between the international payment service providers and the banks.

Another <a href="https://www2.deloitte.com/us/en/insights/industry/financial-services/financial-services-industry-predictions/2023/fsi-b2b-real-time-payments-predictions.html">global executives survey</a> shows that around 66% of people pay US$10–$50 in cross-border fees for B2B transactions and 0.25%–3% in foreign exchange fees. Moreover, 70% of businesses face delays of up to 10 days in receiving international payments.

These statistics are a testament that service providers have a tough time dealing in a global market.&nbsp;

However, for businesses to maintain their cash flow, there must be a balance between accounts receivable and accounts payable. Challenges related to international payments often create a liquidity crunch for businesses, especially small and medium enterprises. While businesses may be able to survive without generating profits, they need enough liquidity to keep their business afloat.&nbsp;

The solution to these challenges is a payment gateway that eliminates these hurdles, and Skydo was born to be a service exporter’s saving grace.

Skydo facilitates quick and smooth global payments for Indian exporters, enabling them to overcome international payment challenges, improving visibility, reducing transaction costs, and getting rid of manual invoicing and payment challenges.

This blog discusses Skydo's invoicing feature and how it simplifies and streamlines the process of receiving international payments and reconciliation for tech exporters.



Learn more: <a href="https://www.skydo.com/blog/hidden-fees-in-bank-rates?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">The "hidden fees" in your Bank rates and how to calculate your actual fx cost</a>

Before sending out an invoice to an international client, you need to consider foreign exchange rates, the details to be mentioned in the invoice, and the <a href="https://www.skydo.com/blog/should-i-invoice-in-inr-or-foreign-currency?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">currency in which the invoice will be issued.</a> Businesses often miss out on these important details, leading to a lot of back and forth with the client to finalise the invoice. The consequence is delayed payments.

Even after finalising the invoice, business owners waste time worrying about the payment status and whether the client has received the final invoice. Despite advances in e-payment systems for cross-border transactions, tech exporters face many hurdles in receiving global payments.&nbsp;

Skydo’s invoicing feature streamlines and automates the invoicing process for tech exporters by providing a host of invoicing features, including e-invoicing for businesses, downloading FIRA certificates, and real-time updates of transaction status.

It enhances professionalism and boosts the credibility of businesses in front of international clients as businesses send a standard invoice with their logo, company details, and services provided.&nbsp;

The invoicing feature further allows businesses to automatically create, send and track invoices. This saves time spent on creating manual invoices and allows exporters to focus on core business activities. Additionally, detailed and easy-to-understand invoices promote transparency, helping you build positive relationships with international clients and improve their perception of your brand.

Learn more:&nbsp;<a href="https://www.skydo.com/blog/navigating-payment-platform-headwinds-to-stormproof-your-business?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">How to Secure Your Business Against Payment Platform Challenges</a>

Here is a step-by-step on how to prepare and send e-invoices easily to your customers, send reminders, and track your payments and overall revenue on a single dashboard:

1. Send a customised invoice to each client&nbsp;&nbsp;

Skydo’s <a href="https://www.skydo.com/blog/transforming-your-invoicing-experience-with-skydo?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">invoices feature</a> includes a simple template where you can customise the billing items and other details for each client.&nbsp;

You need to add the name of the client and their business details. Then, as soon as you add the country of the respective client, the place of supply gets automatically added. In the next step, you add the currency in which you want to receive the payment.

Moving on, you need to add the SAC code as per the services provided. The invoice template also adds a discount column. You have to simply add the discount percentage offered to the client, and it automatically gets converted into value in USD or any other currency specified in the invoice.&nbsp;

Lastly, if you will be receiving the payment in USD, you need to upload a letter of undertaking as per GST compliance. The invoicing feature also allows users to add additional details or notes if required.

Learn more: <a href="https://www.skydo.com/blog/streamlining-business-compliance-finding-the-appropriate-hsn-code-or-sac?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">How to Find the Right HSN Code or SAC for Your Business</a>

Skydo provides a real-time preview of the tax invoice generated. You can either save the invoice as a draft to work on it later.&nbsp;

Once you finalise an invoice, its number is automatically generated. However, you can also add the invoice number manually. Along with that, you can set a due date for invoice clearance, such as 10 days, 2 weeks, or immediately.&nbsp;

Once the final invoice is generated, download it as PDF or send it to the client. Another convenient option is to email the invoice to the client directly through Skydo's platform.&nbsp;

Skydo's e-invoicing feature also enables you to save time by automatically preparing drafts for recurring invoices. You don't have to spend time creating multiple invoices with the same details. Instead, you can create duplicate invoices to save time and effort.

3. Send invoice payment reminders to clients to avoid unnecessary delays&nbsp;

One of the most interesting invoicing features of Skydo is sending invoice payment reminders. If there is a delay from the client in processing the payment, you can send a reminder email. You can also preview a test reminder email that the clients will receive.&nbsp;

The platform also enables users to check the status of reminder emails such as the number of times reminders have been sent and on which dates. This helps you keep track of the reminders and prepare the next steps accordingly.

4. Track the status of all invoices sent through Skydo or other platforms

For businesses serving multiple clients in foreign countries, it is challenging to keep a record of and track several invoices parallelly. Skydo makes this task easier. It offers a whole timeline of invoices, including when it was sent, when the client viewed it, when payment was processed, and when the transaction was completed.

Moreover, Skydo's invoicing feature also allows users to add invoice entries in the dashboard for accurate tracking. You can upload an invoice that was sent directly to the client without using Skydo's platform. This helps keep a correct record of all payments.

The RBI issues Purpose Codes to identify the purpose of cross-border transactions. Businesses as remittees must mention the purpose code before a cross-border transaction. The codes are available on banks' websites.

However, banks can reject foreign inward remittances if the purpose code is missing or a wrong purpose code is mentioned. If you create invoices on Excel or another payment application, you will have to manually enter the purpose code every time.&nbsp;

To streamline this process, Skydo pre-fills the purpose code corresponding to the services you provide into your account from the RBI database upon registration. This way, while reconciling invoices, you can select the purpose code relevant to the service provided from the drop-down.&nbsp;

Thus, Skydo reduces manual effort and mitigates the chances of error and payment delays because of wrong or missing purpose codes. 

In addition to digital invoices, Skydo also offers an e-invoicing feature. Once you have finalised the invoice on Skydo's platform, you can generate an e-invoice by clicking ‘Generate E-invoice’. The platform produces the QR code and IRN. You can copy the IRN or download the invoice.&nbsp;

You can also send this invoice via email to your client or download it and mark it as sent.

7. Get access to all your payment details and FIRAs in one place

<a href="https://www.skydo.com/blog/automated-firc-simplifying-international-payments-compliance">Foreign Inward Remittance Certificate (FIRA)</a> is one of the mandatory compliances issued by RBI for tech exporters. It includes all the details of the international transaction and serves as a record for tax purposes. It is one of the most cumbersome tasks for tech exporters.&nbsp;

Skydo makes it easier for businesses to adhere to tax compliances by providing a FIRA certificate for each transaction. It provides an option to view and download all FIRA certificates simultaneously.

Additionally, you can also export all the payment reports as an Excel to conduct in-depth financial analysis for your business.

Learn more: <a href="https://www.skydo.com/blog/automated-firc-simplifying-international-payments-compliance">Automated Digital FIRA to Simplify International Payments for Businesses</a>

8. Get a 360-degree view of the revenue generated

Skydo's invoice dashboard provides a quick snapshot or summary of all invoices sent to foreign clients, account receivables, invoices cleared and in-progress settlements.

Additionally, you can review all invoice details, including invoice number, issue date, client name, invoice status, invoice amount, and payment due date.

The dashboard provides in-depth analytics of payments based on invoices. You get an overview of the business revenue, the average time taken to receive international payments, the total business generated, the total transaction fee amount, and more. Doing so helps you save time on making crucial business decision-making processes.



Wire transfers are one of the most expensive methods of receiving international payments. However, more than <a href="https://www.cliffsnotes.com/tutors-problems/Entrepreneurship/51589766-Approximately-one-third-of-businesses-were-successful-at-the-time/">one-third of businesses</a> rely on it. With Skydo, IT exporters can receive payments directly into their international bank accounts for quick clearance instead of wire transfers. You need to prepare an invoice as explained above and add your account details to the invoice. Once the invoice is ready, you can attach the invoice to the customer’s email with invoices@skydo.com in CC.&nbsp;

<a href="https://www.skydo.com/?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=demo_click">Skydo</a> informs you as soon as the payment is made in the international bank account. It also provides a separate tab where you can check the payment charges and currency exchange charges.

Thus, Skydo's invoicing feature saves exporters the hassle of creating and tracking invoices by building a one-stop solution to receive global payments with ease. <a href="https://www.skydo.com/?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=demo_click">Sign up on Skydo</a> to fast-track the process of receiving global payments and boost your revenue.

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TechX, a growing software company, recently expanded internationally. However, they unintentionally violated data protection and payment laws by neglecting <a href="https://www.skydo.com/blog/ensuring-financial-compliance-5-tips-to-safeguard-your-businesss-finances?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">compliance requirements</a>. Unaware of complex regulations, their negligence enabled data theft and scrutiny from regulatory bodies. This resulted in the revocation of their license, barring further exports.

These incidents showcase the critical need for tech exporters to prioritise global compliance. Though regulations may seem like jargon. But following them is vital for smooth international trade, mitigating reputational risks, and succeeding globally.

With complicated guidelines, global compliance is tricky yet acts as a protective guard amid competitive pressures. Mastering it is essential for tech export companies.

Compliance in the tech export industry refers to following the laws, regulations, and industry standards to ensure ethical and legal business practices. It encompasses various aspects, such as data protection, payment laws, and industry-specific regulations.&nbsp;

According to experts in the field, compliance is crucial for tech exporters as it helps build trust and credibility among stakeholders, including customers, partners, and regulatory bodies.&nbsp;

Compliance protects sensitive data, fosters transparency in financial transactions, and helps navigate the ever-changing regulatory landscape. This way, tech exporters can create a secure and reliable environment, mitigate risks, and establish themselves as responsible players in the industry.

Implementing data protection measures in India requires a proactive approach. Small businesses often handle customer data, and a failure to comply with data protection regulations can have severe consequences, especially considering limited resources and brand reputation.&nbsp;

Customers often choose a company that prioritises data security and respects privacy. This way, ensuring data protection compliance can provide a competitive advantage over non-compliant competitors.

Several regulations and frameworks govern data protection practices in India, providing a framework for businesses to follow.

Experts also emphasise the importance of implementing privacy policies and consent mechanisms that align with Indian data protection laws. Businesses must ensure that individuals are adequately informed about the purpose and nature of data processing and have the right to access, rectify, and delete their personal information.&nbsp;

The Reserve Bank of India (RBI) governs payment systems and regulates transactions in India. The Foreign Exchange Management Act (FEMA) also plays a significant role in regulating <a href="https://www.skydo.com/blog/future-of-cross-border-payments-2030-and-beyond?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">cross-border transactions</a> and foreign exchange transactions.

Non-compliance with payment laws can have severe implications for tech exporters. The RBI and guidelines set by FEMA can initiate inquiries and impose penalties for violations. These penalties may include monetary fines, suspension of payment licenses, or even imprisonment in extreme cases. Non-compliance can disrupt business operations, cause reputation loss, and strained relationships with business partners and customers.

A budding e-commerce brand, Company B, faces industry-specific regulations related to consumer protection, data privacy, and online transactions. They prioritise transparency by clearly outlining terms and conditions, refund and privacy policies.&nbsp;

Additionally, Company B invests in <a href="https://www.skydo.com/?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">secure payment gateways</a> and encryption technologies to protect customer data. They create a trustworthy user environment and build long-term customer relationships by complying with industry regulations.

To comply with changing regulations, tech exporters can follow these steps:

Global compliance software and tools offer features such as automated regulatory monitoring, document management, risk assessment, and audit trails. These tools help exporters stay updated on changing regulations, maintain documentation, and ensure adherence to compliance requirements.&nbsp;

Expert recommendations and authoritative reviews can guide tech exporters in selecting the most appropriate compliance software and tools. 

Agencies for Providing Guidance on Regulatory Compliance

Numerous local, state, and federal agencies oversee laws and regulations applicable to organisations. These entities, and occasionally additional groups, offer guidance to assist companies in comprehending and adhering to the applicable laws and regulations. This list encompasses some of these agencies and groups:

1. Directorate General of Foreign Trade (DGFT)&nbsp;

The DGFT is the nodal agency for administering India's foreign trade policy. They offer extensive guidance on regulatory compliance for export businesses, including:

2. Export Inspection Council of India (EIC)

The EIC oversees the quality and standards of exported goods. They offer:

The BIS sets national standards for various products and services. They play a vital role in:

The Customs Department facilitates smooth import and export clearance. They offer:

EPCs are industry-specific organisations that promote exports from India. They offer:

Moreover, If you're working with clients in the US, it's important to know about these local market agencies. They can have a big impact on your success and help you navigate the ins and outs of the market.

Understanding regulations, seeking legal counsel, and leveraging technology tools are crucial. Compliance ensures a trustworthy environment, mitigates risks, and protects customer data. It is an ongoing requirement in a changing landscape, providing a strategic advantage for tech exporters to build credibility and achieve long-term success.

Ans: Regulatory requirements are the rules, laws, and guidelines established by government authorities or regulatory bodies that businesses and individuals must adhere to in their operations. These regulations aim to ensure fair practices, protect consumers, maintain market stability, and address specific industry concerns. Failure to comply with regulatory requirements may result in legal consequences, fines, or other penalties, emphasising the importance of understanding and adhering to these standards within a given jurisdiction.

Q2. Which compliance talks about regulatory aspects?

Ans: Various laws and regulations governing specific industries or financial transactions primarily address the regulatory aspects concerning compliance. Concerning international payments, adherence to legal requirements such as import-export codes (IEC), GST regulations, and client agreements plays a crucial role.&nbsp;

Ensuring compliance with these measures is essential for businesses to operate transparently and within the legal framework, minimising risks and promoting financial integrity.

Ans: Global compliance refers to businesses' adherence to the diverse legal, regulatory, and ethical standards across international jurisdictions. It encompasses laws related to taxation, data protection, trade, and industry-specific regulations.&nbsp;

Achieving global compliance ensures that a company operates within the legal framework of each country it engages with, fostering trust, mitigating risks, and facilitating cross-border business transactions while maintaining ethical and legal standards on a global scale.

Ans: Regulatory compliance refers to the adherence of individuals or organisations to laws, rules, and regulations set by governing bodies. It ensures that businesses operate ethically, transparently, and within the legal framework of their industry or jurisdiction.&nbsp;

Compliance may involve meeting industry-specific standards, financial reporting requirements, data protection laws, and other regulations.

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Facilitating international transactions as an international business is as common as sipping a morning coffee. Yet, they must navigate a hidden financial obstacle: Forex markups. These stealthy charges on foreign exchanges can silently chip away at a company's profits, leaving you blindsided by unexpected costs.&nbsp;

Picture this - you've just closed an excellent business deal overseas, only to see a large chunk of your earnings disappear due to hidden fees. This is the danger of Forex markups; many times, these fees are hidden, until it's too late. These charges appear minimal at first look but add up quickly, resulting in much higher costs for businesses of all sizes.&nbsp;

These hidden expenses lurk at every step, whether you're a multinational company procuring supplies from overseas or an IT export startup paying distant developers in a different currency. But what if there was a way to bypass those unexpected fees, reduce lengthy wait times, and sidestep cumbersome paperwork?&nbsp;

<a href="https://www.skydo.com/?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=demo_click">Skydo</a> makes it easier for businesses to identify and reduce hidden costs to keep more profits. Here’s how.

An issue that frequently arises in international trade is managing <a href="https://www.skydo.com/blog/future-of-cross-border-payments-2030-and-beyond?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">cross-border payments</a>. With their complex fee structures and lengthy processes, traditional banks have been the default choice yet completely outdated. Enter Skydo, a platform designed to alleviate these issues and promote transparency and efficiency.

When you receive an international payment via Skydo, you get real-time exchange rates for your transactions. This way, you get the most accurate and competitive rate in the market without any <a href="https://www.skydo.com/blog/hidden-fees-in-bank-rates?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">hidden charges</a> while achieving complete value for money on your transaction.

Our straightforward pricing model makes it easy for you to forecast your expenses. For transactions under USD 2,000, a fee of USD 19 is applied. For those exceeding this threshold, the fee is USD 29. With our transparent approach, you can have peace of mind knowing exactly what you're paying for.

Imagine the savings your business could achieve by eliminating the cumulative costs of traditional banks for international transactions! With Skydo's currency conversions, businesses can save up to 10 lakhs annually. Don't just take our word for it; verify these savings using our<a href="http://bit.ly/3MOk7P0"> convenient savings calculator</a>.&nbsp;

The Skydo platform is meticulously designed to cater to global and emerging enterprises' needs. Our user-friendly interface offers a seamless experience, making international transactions straightforward and efficient.&nbsp;

With Skydo, setting up an international account is quick and hassle-free. In just 5 minutes, you can establish an account that upholds the highest legal compliance standards. No more lengthy processes, only business agility.

Skydo streamlines the entire payment process and brings transparency, cost savings, and unparalleled ease of use. With a range of innovative features, Skydo is the modern solution to age-old payment challenges. Here's the step-by-step process that makes cross-border transactions hassle-free and profitable for your business.

Step 1: Setting up your international bank account

With Skydo, it's a breezy <a href="https://www.skydo.com/blog/seamless-payment-experience-with-international-bank-accounts?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=demo_click">5-minute</a> affair. All it takes is a straightforward KYC process, entering your business details, uploading a few documents and voilà, you're ready to roll.

Need to bill your clients? Create and send professional invoices at zero cost. With Skydo, invoicing isn't just free; it's incredibly intuitive.  

<a href="https://www.skydo.com/blog/transforming-your-invoicing-experience-with-skydo?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">Click here</a> to learn more about how to use Skydo’s invoicing tool free of cost.

Let your customer take the stage. They make local payments, enjoying the comfort and confidence of dealing within their region.

Step 4: Hello, Skydo international accounts

As soon as your client completes the payment, the funds are securely tucked in your Skydo international account, ready for the next move.

The funds begin their voyage, moving smoothly to Skydo's trusted bank partners in India.

Your money gets converted into INR. Rest assured, it's getting the best rates in town.

Step 7: A Warm welcome to your Indian bank account

Without much ado, the money finds its way to your Indian bank account, ready for you to use as you see fit.

An added service most valued by our customers–you get your FIRA and Skydo payment receipts generated, keeping everything above board and crystal clear.

In an era where clarity and transparency are essential, Skydo is leading the charge to set new standards for global financial transactions. With this innovative payments platform, you're not just adopting a system – you're joining a movement towards open, honest dealings.&nbsp;

See the difference firsthand with a <a href="https://www.skydo.com/?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=demo_click">quick demo</a>. Experience the Skydo advantage and be at the forefront of this transformative trend in cross-border payments.

Q1. What are Forex markups, and how do they impact international business transactions?

Ans: Forex markups refer to the additional charges imposed on currency conversion in international transactions. They impact businesses by increasing costs, affecting profit margins, and potentially deterring international trade.

Q2. What steps can businesses take to identify and reduce hidden costs in international transactions?

Ans: Businesses can identify hidden costs in international transactions by thoroughly reviewing contracts, understanding exchange rate mechanisms, and leveraging technology to track transaction fees and fluctuations in currency values.

Q3. How can I assess the true cost of Forex fees on my international transactions?

Ans: To assess the true cost of Forex fees, businesses should calculate the total expenses, including transaction fees, currency conversion charges, and any other associated costs incurred during international transactions.

Q4. What types of Forex fees should I be aware of beyond transaction fees?

Ans: Beyond transaction fees, businesses should be aware of additional Forex fees, such as spread costs, intermediary bank charges, and potential regulatory fees, which can contribute to the overall expense of international transactions.

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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: