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

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

Rohit

medium_Rohit.png

small_Rohit.png

thumbnail_Rohit.png

Rohit Khuranna

Doing your GST refunds as a business owner can feel like trying to solve a Rubik's Cube. The complicated forms, constant compliance checks, and fear of messing up and facing penalties can be overwhelming, not to mention the delays, cash flow issues, and even legal obstacles that can occur if you make one wrong move. Instead of spending time on growing your business, you're buried in paperwork and tax codes.&nbsp;

What if there's a way to make all these problems go away?&nbsp;

<a href="https://www.skydo.com/?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=demo_click">Skydo</a> is an approved tool by chartered accountants that makes <a href="https://www.skydo.com/blog/how-to-claim-input-tax-credit-refund-in-india?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">GST refunds</a> easier than ever before. No longer will you need to stress over a long and tedious refund process, as Skydo makes the process accurate, quick, and hassle-free – so you can get back to what matters most: running your business.

Let’s learn how Skydo helps with GST Refunds.

Skydo is revolutionizing the current financial landscape with its advanced platform. With its cutting-edge technology and user-centric features, Skydo has quickly become the go-to platform for anyone needing help with GST-related compliances.

Key features that make Skydo a standout choice

1. Effortless Letter of Undertaking (LUT) Integration

An <a href="https://www.skydo.com/blog/everything-you-need-to-know-about-lut?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">LUT is vital for GST compliance</a>. To draft the LUT, you can simply log into the GST portal—an efficient digital platform. Go to the 'SERVICES' Tab &gt; 'User Services' &gt; Select 'Furnish Letter of Undertaking (LUT)'.

Select the financial year applicable for this LUT and fill in the necessary details on the Letter of Undertaking Form/GST RFD-11 that appears on the screen. Once you receive confirmation, you can capture the details of the LUT for further reference.

When creating your invoice on Skydo's platform, you'll find a dedicated section to include the LUT, accommodating up to 200 characters. This means that as you generate invoices for your international clients, you can effortlessly ensure tax efficiency.

You can seamlessly integrate the LUT into your invoice during its creation, avoiding delays and the hassle of jumping through multiple hoops for tax compliance.

2. FIRAs (Foreign Inward Remittance Advice)

Traditionally, you'd have to wait for days to receive a <a href="https://www.skydo.com/blog/all-you-need-to-know-about-FIRC-a-complete-guide?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">Foreign Inward Remittance Advice (FIRA)</a> to confirm payment settlement. However, Skydo steps in to change the game. As soon as your client's payment is settled, you receive the FIRA instantly. This real-time availability doesn't just accelerate your financial processes; it's like having a financial assistant ensuring that you're always in the know.

When you <a href="https://www.skydo.com/blog/seamlessly-accept-international-payments-in-india?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">accept international payments</a> to your bank account, the bank requires you to specify the purpose code and provide supporting documents like FIRA against each inward receipt.

With Skydo, you no longer need to worry about remembering purpose codes or flipping through thick rulebooks when sending invoices. The system will automatically provide the correct purpose codes based on the code you provided before, eliminating the need to go to the bank to obtain new ones each time.&nbsp;

It's like having a built-in expert to handle the intricacies of compliance, making your life simpler and your business more efficient. 

As a business owner preparing for an upcoming audit, you need access to comprehensive transaction records. With Skydo receipts, you get a detailed breakdown of your transactions, serving as a reliable tax invoice. It's like having an accountant at your fingertips, simplifying accounting, record-keeping, and financial transparency.

Skydo's technology streamlines the process while adding layers of accuracy, transparency, and efficiency, not typically found in traditional methods.

Skydo is more than just a payment and refund system - it provides an all-in-one solution for managing your financial operations such as:

Skydo is the perfect partner for making your financial life easier.&nbsp;

With Skydo, you don't need to be an expert in tax law because the easy-to-navigate interface is designed for simplicity. In addition, automated processes ensure accuracy and financial compliance, saving time and effort.&nbsp;

The platform's transparency feature lets you track payments and refunds in real-time. With features like budgeting, bill payment, and account monitoring, you can easily streamline your financial processes. Make sure not to miss out on all that Skydo has to offer and<a href="https://www.skydo.com/?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link"> book a demo today</a>.

Chartered Accountants approve Skydo for Seamless GST Refunds Th

large_chartered-accountants-approve-skydo-for-seamless-gst-refunds-th

medium_chartered-accountants-approve-skydo-for-seamless-gst-refunds-th

small_chartered-accountants-approve-skydo-for-seamless-gst-refunds-th

thumbnail_chartered-accountants-approve-skydo-for-seamless-gst-refunds-th

chartered-accountants-approve-skydo-for-seamless-gst-refunds-th

In India's bustling world of startups and service exporters, dreams are becoming reality as businesses expand their horizons across international borders. However, this journey has its challenges. The hard-earned revenues of these enterprises often get eroded by various transaction fees associated with cross-border payments.&nbsp;

Just as travellers entrust their luggage to the skies, businesses entrust their earnings to an international payment system. They find themselves entangled in a web of hidden charges and pathways.&nbsp;

Meet Shubham, an entrepreneur in India who runs a thriving tech export business. His business has been getting international recognition, attracting customers worldwide. However, he witnessed a shrinking growth in the global market. The reasons include the following.

1. Currency conversion and exchange rate fluctuations&nbsp;

Shubham successfully bagged a great project and completed it. He was basking in the satisfaction of doing the work that was well appreciated and eventually compensated. However, due to unfavourable exchange rates, the amount he received post USD to INR conversion was at rates that significantly impacted his profit margins.&nbsp;

It affected his bottom line and eroded his confidence in the reliability of traditional banking systems.

2. Regulatory and compliance issues&nbsp;

Each jurisdiction has its rules, making operating without legal compliance challenging for a business. Since there was a delay in receiving funds, Shubham faced issues with meeting these compliance requirements. The paperwork and the back-and-forth with the payments vendor left him frustrated and doubting the efficiency of existing payment methods.

Shubham's frustration deepened as he encountered payment processing delays that led to missed opportunities. A client's payment took several days to reach his account due to the involvement of intermediary banks and complex clearing processes. The unexpected processing fees associated with cross-border transactions also chipped away at his profits.

4. Impact on efficiency and customer satisfaction

Shubham's business prides itself on efficiency and customer satisfaction. However, his team spends valuable time grappling with administrative hurdles instead of focusing on innovation. It affected the quality of service he could offer his international clients, risking their satisfaction and loyalty.

Shubham’s story is similar to the plight of many other businesses of all sizes in India facing similar challenges.&nbsp;

Skydo promises a transformative solution to international payment challenges. It revolutionises how businesses handle international payments and overcomes these roadblocks for Shubham and many other companies. &nbsp;

Skydo - Your Passport to Effortless International Payments

Skydo breaks the barriers most enterprises face and bridges the borders for Indian tech exporters to achieve payment success with maximum revenue and efficiency for those looking to expand overseas. Its top features include the following.

Skydo offers live or real-time foreign exchange rates and no hidden margins. For example, you have sent an invoice for $500, and the client has dispatched the payment. The amount you receive is equivalent to the globally set conversion rate when it hits the Skydo account.&nbsp;

The flat fee attached earlier to the invoice will translate into the same Fx rate, which will be visible in the payment tracking system alongside every invoice. There are no hidden charges.

Traditional methods often involve separate platforms or software to generate invoices, which can be time-consuming and require additional financial resources. However, Skydo redefines this process by offering a <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">built-in invoicing feature</a> that simplifies and streamlines the invoicing experience.

Here's how you can create a free invoice.

If you're invoicing a new client, add a new client name in the 'Bill to' field, or you can search from the existing clients list. Provide the address, select the country, and click save and continue.

In the next tab, select the payment currency and provide item details like the service provided, SAC, rate, and amount. You can also offer a discount in percentage. Skydo automatically displays the invoice amount after the discount.&nbsp;

Next, select the currency and subsequent account to receive payments.

On the right side of the screen, you've three options - to finalise the invoice, download the PDF or delete the invoice.&nbsp;

Upon finalising the invoice, the below screen appears. 

If required, you can manually enter the invoice number or stick to the one generated automatically. Next, select the due date of the payment.&nbsp;

To generate the e-invoice, click on “Generate E-invoice”. The system will automatically add the QR code to the invoice. You can also copy the IRN for the e-invoice for your reference.&nbsp;

Once all the invoice details are confirmed, click on “Email Invoice to Client”.

3. Auto-generate FIRA (Free Invoice Reconciliation and Accounting)

<a href="https://www.skydo.com/blog/automated-digital-firc-implifying-international-payments-with-skydo?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">Skydo's automated FIRA</a> generation ensures GST compliance is effortless. Once Skydo settles the payment in your bank account, you can select the invoice record and click “Download FIRA”.

You can also download the FIRAs for all invoices simultaneously with the option on the Invoices page as displayed below.

A business's powerful weapon is its revenue data. It provides valuable insights into the things that are working well for the firm. Skydo's Analytics feature provides business and client overviews to help you make informed business decisions.&nbsp;

The Business Overview compiles your revenue data into a visual graph displaying paid and outstanding invoices up to 6 months prior. The graph below also displays revenue generated per client. This way, you can tailor your marketing and sales strategies to pitch additional services.

Similarly, the Client Overview section provides a comprehensive overview of the client’s outstanding payments and revenue generated historically for up to 6 months. You can also analyse the average payment time and invoice amount to determine your top clients.

Skydo's commitment to comprehensive business solutions goes beyond seamless payments and transparent transactions. An essential feature that underscores this commitment is the ability to send payment reminders and maintain a detailed payment history directly within the platform.&nbsp;

This functionality empowers you to efficiently manage their financial interactions and enhance client communication.

For example, in Shubham’s case, he can effortlessly schedule automated reminders for upcoming payment deadlines. These reminders serve as gentle prompts, ensuring timely and hassle-free payments from clients across different time zones.

Skydo's payment reminders feature stands as an invaluable tool for businesses seeking to elevate their financial operations.

Additionally, in the event of a payment discrepancy, the Client Ledger serves as an objective record of financial interactions. It offers a step-by-step chronological overview of every payment transaction, creating an easily accessible and verifiable timeline. This documentation significantly reduces the scope for misunderstandings and disputes between businesses and clients.

6.&nbsp;Single Source of Truth Dashboard for International Payments

The dashboard encapsulates more than just transactions; it encapsulates your financial health. By offering an all-encompassing view of your global transactions, it empowers you to make informed decisions, strengthen client relationships, and drive overall business success.

Skydo redefines the way businesses engage with their financial data, paving the way for transparency, efficiency, and strategic advancement on a global scale. With Skydo's dashboard at your fingertips, harness the power of unified financial intelligence like never before.

Behind the Scenes: How Skydo Achieved Success

Behind the user-friendly interface and innovative features of Skydo lies a carefully crafted strategy and technological foundation.&nbsp;

In a world where success is the outcome of meticulous planning and technological innovation, Skydo stands as a testament to what can be achieved with the right blend of vision and execution. By building a global network, optimising payment routes, deploying advanced technology, securing regulatory approval, and prioritising data privacy, Skydo has carved a distinct niche as a trailblazer in international payments.

Unlock Effortless International Payments With Skydo

In a time when global businesses can only do so much, cross-border payments can be a formidable obstacle. Skydo simplifies the process of your international payments by helping individuals and organisations succeed in their businesses.&nbsp;

Discover the future of <a href="https://skydo.com/?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=demo_click">international payments with Skydo</a> - an efficient and innovative merger to transform the global marketplace.

 How Skydo Increased Success Rate on International Payments Th

large_how-skydo-increased-success-rate-on-international-payments-th

medium_how-skydo-increased-success-rate-on-international-payments-th

small_how-skydo-increased-success-rate-on-international-payments-th

thumbnail_how-skydo-increased-success-rate-on-international-payments-th

how-skydo-increased-success-rate-on-international-payments-th

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&nbsp;<a href="https://www.inkle.io/blog/accounts-receivable-process">accounts receivable</a> 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.

Simplify your global payments with Skydo: a one-stop-shop from invoicing to payments to reconciliation th

large_simplify-your-global-payments-with-skydo-a-one-stop-shop-from-invoicing-to-payments-to-reconciliation-th

medium_simplify-your-global-payments-with-skydo-a-one-stop-shop-from-invoicing-to-payments-to-reconciliation-th

small_simplify-your-global-payments-with-skydo-a-one-stop-shop-from-invoicing-to-payments-to-reconciliation-th

thumbnail_simplify-your-global-payments-with-skydo-a-one-stop-shop-from-invoicing-to-payments-to-reconciliation-th

simplify-your-global-payments-with-skydo-a-one-stop-shop-from-invoicing-to-payments-to-reconciliation-th

An RBI purpose code is a standardised, alphanumeric label that classifies the reason for a foreign inward remittance (e.g., P1401 salary, P0102 export realisation, P0802 software services). AD banks must capture and report it to the RBI for every incoming transfer under FEMA reporting.

Why the right RBI purpose code is critical (inward remittance)

Picking the correct RBI purpose code for inward remittance isn’t a formality; it directly affects compliance, speed of credit, and your documentation trail.

1) It’s a regulatory must-have (FEMA/RBI).
Authorised Dealer (AD) banks must capture and report every foreign inward transaction to RBI with a valid receipt (“P”) purpose code under FETERS. If the code is missing/wrong, banks can’t file accurate returns, triggering holds or rework.&nbsp;

2) It keeps your paperwork clean (FIRC/evidence).
The purpose you declare flows into your compliance evidence (e.g., FIRC details and audit trails). Declaring the accurate code up front helps your bank issue the right certificate without back-and-forth.&nbsp;

3) It prevents delays, manual reviews, and returns.
A vague or incorrect purpose (e.g., tagging a service payment as goods realisation) often triggers manual checks, queries, or even a return to sender until corrected.&nbsp;

4) It improves accounting clarity and BoP classification.
Purpose codes classify inflows (e.g., P01 goods exports, P08 computer &amp; information services, P10 other business services, P13 transfers, P14 income), allowing clean bookkeeping and accurate national statistics—another reason banks insist on precise coding.

5) It reduces compliance risk later.
If you repeatedly misclassify remittances, you create inconsistencies between invoices/contracts and RBI filings—raising the odds of additional questions or penalties under FEMA. Industry guidance stresses getting the code right at the remitter setup stage (sender’s bank/platform usually captures it) to avoid re-papering.&nbsp;

How to pick the correct code (step-by-step)

Find the right purpose code for inward remittance with Skydo

Our purpose code finder is your shortcut to identifying the correct purpose code for inward remittance and explaining when to use it. You can either search for the activity to find the relevant purpose code or directly look up the specific purpose code for a simple explanation of when to use it.&nbsp;

Please note that this tool doesn't contain the exhaustive purpose code list for inward remittance.&nbsp; For complete compliance and accuracy, it's always advisable to get in touch with your financial advisor for professional advice.

Personal vs. Business: Quick Selector for the Right Purpose Code

Personal / family inflows (individuals):

Business / freelance inflows (exporters, agencies, SaaS, consultants):