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

A powerful empire crumbles, not from external forces, but from within. Like the parasite that silently multiplies and destroys, unchecked financial non-compliance can undermine even the mightiest businesses.

A <a href="https://www.pwc.com/gx/en/issues/upskilling/global-culture-survey-2021.html">survey report</a> found that 67% of firms believe business compliance is becoming more complex. With recession looming over the global economy, businesses cannot afford to take any risks when complying with financial regulations. The fallout from non-compliance can be severe, resulting in hefty fines, legal action, and damage to a company's reputation.&nbsp;

To avoid this, staying current with financial regulations and requirements is important. Let's drill down the five ways to make your business financially compliant this year.

Tip 1: Stay Updated With Existing Laws + Regulatory Changes

A recent study conducted by PwC revealed that <a href="https://brandfolder.com/resources/compliance-challenges-for-financial-services/">40% of CEOs</a> are worried about the constant changes impacting their organisation, as they fear it may result in non-compliance with laws and regulations.&nbsp;

The utilisation of compliance calendars is a valuable asset in such circumstances. These calendars are frequently offered at no cost and serve the purpose of aiding individuals in monitoring important dates and obligations, such as tax deadlines, financial report filings, and various regulatory business compliance requirements including <a href="https://vakilsearch.com/gst/registration">registering GST online.</a>

Moreover, you can access different resources like government websites ( such as the <a href="https://www.rbi.org.in/">RBI</a>, <a href="https://www.sec.gov/">Securities and Exchange Commission</a>, <a href="https://www.ftc.gov/">Federal Trade Commission</a>, <a href="https://www.mca.gov.in/content/mca/global/en/home.html">MCA</a> and <a href="https://www.sebi.gov.in/">SEBI</a>), professional organisations, and <a href="https://legal.economictimes.indiatimes.com/etnewsletter.php">industry newsletters</a> to stay informed and updated. Your proactive approach saves you from potential fines and disruptions in your supply chain, and your customers appreciate your reliable and compliant business practices.

Tip 2: Implement Robust Financial Management Systems

Have you heard the story of the Roman Empire? They had lots of money from winning wars, but when they stopped winning, things got bad. They spent too much and messed up their money, which caused lots of problems and helped lead to their downfall. This shows us the importance of being careful and managing money well.

Like the Romans, we must also understand our money situation, especially when things change. Financial management systems can help us do just that. They give us a clear picture of how we're doing and help us make better money decisions. Believe me. We don't want to end up like the Romans!

As <a href="https://www.linkedin.com/in/mrdeepshah/">Deep Shah</a>, Co-founder of <a href="https://www.linkedin.com/company/twiseidiot/mycompany/">The Wise Idiot</a>, explained - “The three major benefits of using financial management systems are: time-saving (since it's directly linked to my bank account, enabling faster payments and reconciliation or even GST filing), ease of use (with intuitive UI and cloud-based technology), and easy analysis (almost every report I need is already templated and ready).”

But the foundation of any effective financial management system rests upon the fundamental accounting process. Here are some basic steps of accounting:

To automate the above process, you can use standard accounting software. This tool allows for streamlined financial record-keeping, reducing the likelihood of errors and improving efficiency. With <a href="https://www.skydo.com/blog/top-accounting-tools-for-a-streamlined-bookkeeping-experience-for-tech-exporters?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">accounting software</a> like ZohoBooks, and Xero, businesses can easily track expenses, manage accounts payable and receivable, and reconcile bank statements.

<a href="https://www.linkedin.com/in/kevinsyng/">Kevin Singh</a>, Founder of <a href="https://www.linkedin.com/company/viralinbound/">Viral Inbound</a>, described - “Using popular accounting software has been essential for our business to operate smoothly and make informed financial decisions. It's a valuable investment that has helped us save time, reduce errors, and focus on growing our business. And for us, ZohoBooks has been a great choice for our accounting needs.”

Another key component of the financial management systems is financial audits. These audits are important to ensure accuracy and business compliance. They identify errors and areas for improvement, build trust with investors, and demonstrate a commitment to transparency.&nbsp;

Just as a seatbelt is vital for safety and protection in an accident, accurate financial records are essential for protection and accountability in an audit or investigation.

While explaining the importance of record-keeping, CA <a href="https://www.linkedin.com/in/kanan-bahl/">Kanan Bahl</a>, Founder of Fingrowth Media, describes, "It is a famous saying in the CA Practice lobby - Compliance is costly, but non-compliance is far more costly. If applicable, one must keep appropriate financial records per the relevant statutes.

There are many penalties under <a href="https://www.skydo.com/blog/gst-format-matters-heres-why-and-what-it-includes?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">GST and Income tax laws</a>. Just to name one small cost of non-compliance - ₹25,000 is the penalty u/s 271A of the Income Tax Act, 1961 for not keeping book-keeping records u/s 44AA."

Accurate financial records clearly show a company's financial activities, ensuring transparency and accountability. Therefore, it's essential to prioritise the accuracy and completeness of financial records to ensure business compliance with regulations and maintain the company's reputation and financial stability.&nbsp;

Here are some tips for proper record-keeping for your business:

Tip 4: Engage a Professional Financial Advisor

Embarking on international business can be exciting, but many financial challenges exist, including cash flow problems due to long payment terms. The production, technical expenses, and maintenance costs can be challenging to manage upfront. Moreover, the fallout from non-compliance can have serious consequences, including significant financial penalties, adding another layer of complexity to the business.&nbsp;

With a wealth of knowledge and expertise in finance, taxation, and regulations, a financial advisor can help you successfully navigate the challenges of conducting business internationally and ensuring your company remains financially stable. Here are some more benefits of having the right professional financial advisor.

However, when seeking to engage the services of a financial advisor or accountant, assessing their performance becomes imperative by examining specific Key Performance Indicators (KPIs). This is essential to guarantee that their services align with your business's long-term objectives. Consider the following significant KPIs when evaluating potential candidates:

As per business requirements and need, companies can also hire an in-house financial expert.&nbsp; This person can manage the day-to-day financial operations of the business, provide strategic financial advice, and ensure compliance with relevant regulations.&nbsp;

Rohit Khurana, a Chartered Accountant professional and finance lead at Skydo, gives insights on hiring a full-time financial expert “Despite the business needs, if your turnover is more than ten core, then you have hired a full-time CS or CA as per Govt. law”. An in-house financial expert can also work closely with other departments within the business to develop financial plans and budgets.

To mitigate the risks associated with financial compliance, businesses should collaborate with a financial advisor and provide ongoing employee training. This will effectively ensure that employees stay up-to-date with the latest financial compliance requirements and possess the knowledge to comply.

Regular training sessions can be offered to employees to inform them about changes to financial compliance rules and procedures. Standard operating procedures (SOPs) can also be created to educate employees on various financial compliance topics, such as:

Moreover, a C-suite executive can act as a compliance officer to establish and maintain a culture of compliance in the organisation. This includes setting compliance objectives, monitoring compliance activities, and regularly training employees. Businesses can protect their financial stability and uphold a favourable reputation by prioritising financial compliance and offering continuous support and training to employees.

Maintaining financial compliance is not an option. It is necessary for any business that wants to succeed in today's world. Navigating the complex web of financial regulations and requirements can be daunting. Still, with the right mindset and tools, it is possible to make your business financially compliant this financial year.

Start prioritising your financial compliance today to minimise the risk of financial non-compliance and keep your business running smoothly in the long run!

Q1: Why is financial compliance important for businesses?

Ans: Financial compliance is crucial for businesses as it ensures adherence to laws and regulations, preventing hefty fines, legal action, and damage to the company's reputation. Non-compliance can lead to severe consequences, making it essential for businesses to stay current with financial regulations.

Q2: How can businesses stay updated with existing financial laws and regulatory changes?

Ans: Businesses can stay updated by utilizing compliance calendars, accessing government websites (such as RBI, SEC, FTC, MCA, and SEBI), following professional organizations, and subscribing to industry newsletters. Proactive monitoring helps prevent non-compliance and ensures reliable business practices.

Q3: What are the benefits of implementing robust financial management systems?

Ans: Implementing financial management systems provides benefits such as time-saving, ease of use, and easy analysis of financial data. Standard accounting software like ZohoBooks and Xero can automate processes, streamline record-keeping, and improve overall efficiency.

Q4: Why is proper record-keeping essential for financial compliance?

Ans: Accurate record-keeping is vital for transparency, accountability, and compliance with regulations. It helps in demonstrating financial activities, ensuring accuracy, and protecting a company from potential penalties and fines.

Q5: How can businesses mitigate financial challenges and ensure compliance when operating internationally?

Ans: Engaging a professional financial advisor can help businesses navigate international challenges. Financial advisors assist in managing finances, identifying and mitigating financial risks, developing long-term financial plans, ensuring compliance with regulations, and providing objective advice.

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In the dynamic world of Information Technology (IT) services, success relies on technical expertise and robust financial management. IT service providers must have a firm grasp of the required accounting documents. This paperwork encapsulates critical financial information, facilitating precise decision-making and ensuring compliance with tax regulations. They are the backbone of economic health, enabling IT service providers to set sail confidently towards success.

A Purchase Order (PO) represents an official request from the buyer to the supplier to procure specific goods or services. The Purchase Order outlines critical details such as the type and quantity of items required, agreed-upon prices, delivery terms, payment conditions, and other essential terms and conditions.

For an IT services export company, purchase orders are focal in ensuring smooth operations and maintaining healthy client relationships. When an IT export service provider receives a purchase order from a client, it acknowledges the client's commitment to acquiring the specified services. Therefore, it creates a sense of security for the service provider, as the terms now bind the client.

Moreover, IT service industry purchase orders help streamline the procurement process. They provide clear instructions to suppliers, reducing the risk of misunderstandings and ensuring that the requested services or products are delivered accurately and on time.&nbsp;Using <a href="https://www.controlhub.com/purchase-order-software">purchase order software like ControlHub</a> further enhances this process by automating order management, tracking, and documentation, saving valuable time and reducing errors.

Proforma Invoices: The Preliminary Picture

Proforma invoices are essential financial documents used in the early stages of a business transaction. Unlike final invoices, proforma invoices are not legally binding; they serve as a preliminary outline of the terms and conditions of a potential sale or service engagement. These invoices provide buyers with an estimate of the costs involved before the actual transaction.

These invoices are crucial in IT services, particularly in cross-border transactions. When dealing with international clients, proforma invoices become invaluable for customs clearance and international trade compliance. They assist clients in understanding the scope of the proposed services and the associated costs, enabling them to make informed decisions before proceeding with the purchase.

Many founders and business owners may find this aspect confusing. The timeline to share proforma <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</a> is before the goods are delivered or commenced services. They prelude the final transaction, giving clients sufficient time to review and confirm their orders.

Although proforma invoices are not considered official tax documents, they can impact GST compliance. IT service providers must ensure that the proforma invoice or e-invoice<a href="https://www.skydo.com/blog/what-is-e-invoicing-under-gst-and-who-needs-to-generate-it?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link"> includes accurate GST</a> details, such as GST rates and applicable taxes, to maintain transparency with clients and avoid discrepancies during the final invoicing process.

An invoice is crucial in the IT service industry because it formalises the exchange of goods or services for monetary compensation. It provides concrete evidence of a completed transaction. It ensures that the IT service provider and the client are on the same page regarding the terms, deliverables, and agreed-upon costs.

An <a href="https://www.skydo.com/blog/how-to-implement-e-invoicing-what-the-reduced-threshold-of-rs-5-crores-means-for-your-business?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">effective invoice</a> should include several key components: the IT services' details, with itemised descriptions and corresponding costs. Additionally, the invoice or e-invoice should specify the payment terms, such as due date and accepted payment methods, to facilitate timely payments and cash flow management.

For IT service providers, revenue recognition is decisive for accurate financial reporting and decision-making. Invoices mark the point of revenue recognition, indicating the delivery of services or milestones achieved.

For Indian IT service providers, GST is a significant factor in financial transactions. Invoices must comply with <a href="https://www.skydo.com/blog/what-is-e-invoicing-under-gst-and-who-needs-to-generate-it?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">GST regulations</a>, including the proper Goods and Services Tax Identification Number of the service provider and the client and accurate GST rates for the services provided.

A credit note is a corrective document issued by a seller to a buyer, indicating a reduction in the amount owed for various reasons, such as errors, refunds, or discounts.&nbsp;

In IT services, credit notes are the remedy when discrepancies arise, such as overbilling, inaccurate invoicing, or the need for refunds. They provide an official record of the adjustments made, rectifying the previous transaction and ensuring that the client's account accurately reflects the revised financial status.

By issuing timely credit notes, IT service providers also demonstrate transparency and a commitment to rectifying errors promptly. It fosters a sense of trust and reliability. Credit notes may hold unique significance in local or street-level business practices.&nbsp;

In certain regions, credit notes might be a customary way of acknowledging and settling disputes or compensating clients for minor inconveniences.

Debit Notes: The Additional Charge Advocates

Debit notes are official documents that request buyers to settle extra amounts owed to sellers beyond the original agreement. IT service providers issue debit notes in various scenarios, such as scope expansions, price adjustments, and reimbursable expenses.

Proper accounting measures for debit notes include detailed documentation of reasons for issuing the debit note, timely communication with the client, invoice reconciliation for transparency, and adherence to <a href="https://www.skydo.com/blog/understanding-gstin-requirements-for-export-businesses-in-india?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">GST compliance</a> if applicable.

GST Certificate and LUT Registration: Enabling Compliance and Input Tax Credit in India&nbsp;

Under the GST regime, the GST Certificate and <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">Letter of Undertaking or LUT</a> Registration play crucial roles in this system. The GST Certificate is issued upon successful GST registration, confirming an entity's eligibility to collect GST from customers and claim <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">Input Tax Credit (ITC)</a> on eligible purchases.&nbsp;

Accurate document usage is paramount in claiming ITC, as any discrepancies may lead to rejections or potential penalties.

For businesses engaged in exports, the LUT is indispensable. It allows exporters to supply goods or services without paying GST upfront and is valid for a specified period. By avoiding upfront tax payments, businesses can improve cash flow and competitiveness in the global market.

Understanding its importance and compliance requirements is crucial for businesses to optimise GST benefits and thrive in the Indian marketplace.

Using Accounting Software: Simplifying Document Management

From invoices and purchase orders to credit and debit notes, accounting software automates it all, saving time and reducing errors. <a href="https://www.skydo.com/blog/skydo-dashboard-for-all-your-needs?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">Centralising data</a> ensures seamless document retrieval and secure storage, promoting efficient record-keeping.

When selecting accounting software, consider features like customisable templates for invoices and purchase orders, real-time data syncing, and automated reminders for due payments. Advanced software can integrate with tax systems, simplifying GST compliance by automatically calculating taxes and generating accurate reports.

By utilising reliable accounting software, businesses can streamline document management, maintain regulatory compliance, and gain a competitive edge in today's fast-paced financial landscape.

Navigating the Accounting Landscape with Confidence

In financial management, understanding the significance of different accounting documents is the compass that guides IT service providers towards success.

By grasping the roles of these documents, IT service providers can maintain healthy client relationships, ensure accurate financial reporting, and optimise tax benefits. Utilising accounting software further simplifies document management, promoting efficiency and compliance.

Q1. What are source documents in accounting?

Ans: Source documents in accounting are the original records that provide evidence of a transaction. These documents are the foundation for accounting entries and include invoices, receipts, bank statements, and contracts.

Q2. What are the 5 source documents in accounting?

Ans: The five main source documents in accounting are invoices, receipts, checks, purchase orders, and credit memos. These documents substantiate financial transactions and are crucial for accurate record-keeping.

Q3. What are business documents in accounting?

Ans: Business documents in accounting encompass a wide range of records, including source documents and internal documents like financial statements, ledgers, and journals. They collectively form the documentation trail that supports the business’ economic activities and decisions.

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Here’s a list of checkpoints before choosing the right bank for your IT service export company. The first step before considering any banking factors is knowing your business requirements.

Evaluate your finances, lay out your growth strategies, examine market trends, and consult professionals. The right bank can accelerate your company's growth with customised solutions and long-lasting support.

With the roster of needs required to expand your business globally with the right bank, here’s a checklist to help you choose the right financial institution.

Checklist to Choose the Right Bank: Your Guide to the Right Move

1. Diversity of Services: Looking Beyond Basic Banking&nbsp;

Select a bank that can understand your unique requirements and provide specialised solutions to support your company's growth. The bank that goes above and beyond basic services like credit and lending options, merchant services, cash management, and investment solutions is an absolute winner.&nbsp;

The bank should cater to your industry, and business size - whether it's business-specific loans or industry-specific financial advice. They might be your doorway to more funding, pivotal allies, and vital crisis-avoidance counsel.&nbsp;

2. Global Payment Capabilities: Catering to a Borderless Business World

As a <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">tech export company</a> that deals with international clients, your bank must provide cross-border payment services and support multiple currencies. Remember to include the fees and currency rates for overseas transactions; they should be fair so they do not eat into your profits.

3. Customer Service: Your Ally in the Banking World

When running a small business, you can't afford to waste time on bad customer service. You need a bank that will always be there for you when you need them. Make sure they have accessible support channels and responsive account managers who are dedicated to their business clients.&nbsp;

Consider the amount of assistance you require now and as the company evolves. Certain banks provide specialised consultants to help you manage your accounts, expand your business, and deal with tax or payroll issues.&nbsp;

4. Innovative Solutions: Embracing the Digital Revolution

How frequently do you rely on technology for your banking? Do they offer integrations with your current accounting software or other business tools? Find a bank that stays ahead of the curve with the latest tech and platforms tailored to meet your unique needs.&nbsp;

Take a closer look at their technological capabilities and digital offerings. A modern bank should offer easy-to-use, secure online and mobile banking services.

Thoroughly understand the fee structure of the bank before partnering with them. Enquire about account maintenance fees, transaction fees, wire transfer fees, and other expenses related to their services.&nbsp;

Do your due diligence and consider any potential fees, including the following.

Banking for the Future: Staying Ahead of the Game

The future of business banking is transforming rapidly with technological advancements and evolving expectations of customers.&nbsp;

To stay ahead, embrace these trends and prepare for the future.

Look beyond basic banking services, understand their global payment capabilities, customer service, and how innovative and transparent they are with their banking solutions.

Don't hesitate to reach out to bank representatives directly to discuss how they can cater to your business's demands. Seek advice from financial experts or fellow business owners for valuable insights into the best banking options tailored for your enterprise. Remember, choosing the right bank is more than just a business decision – a partnership that profoundly impacts your long-term success.

The Skydo Advantage: Making Your Global Payments Journey Smooth

Payment solution providers like Skydo are emerging as powerful complements to traditional banking services.

<a href="https://www.skydo.com/?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=demo_click">Skydo</a> is the ultimate bridge between businesses and banks, bringing flexibility, cost-effectiveness, and convenience to international payments. As your trusted ally in business growth, we streamline cross-border transactions and make international payments hassle-free.&nbsp;

We offer tailored solutions that perfectly align with your business needs. Whether you need to pay international suppliers, freelancers, or employees, we ensure secure and cost-effective transfers.

With our user-friendly platform, you can effortlessly navigate the entire payment process. Say goodbye to hidden fees and uncertain exchange rates. Our transparent pricing puts you in full control of your funds.&nbsp;

We support multiple currencies and local banking networks for agile transactions, reducing processing times and eliminating unnecessary delays. Take the leap with <a href="https://www.skydo.com/?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=demo_click">Skydo</a> and stay ahead in the game of global payments.

Business banking requires a strategic approach to selecting the right bank for a company's success. Factors to consider include high working capital requirements, trade finance, cash management solutions, strong employee value propositions, and innovative technology for payments and workflow management.&nbsp;

To choose the right bank, focus on the diversity of services, global payment capabilities, and customer service. You must embrace innovative solutions, such as mobile banking apps, online payments, and automated financial management tools while being transparent about your costs.&nbsp;

By choosing the right bank, businesses can strategically make informed decisions and stay ahead in the global payments market.

Q1. What are some of the things you should look for when selecting the right bank?

Ans: When selecting the right bank, consider factors such as fees, interest rates, account types, online services, and customer reviews. Assess your financial needs, evaluate transparency in terms and conditions, and ensure convenient ATM access.

Ans: The best bank for you depends on your needs. Evaluate factors like account fees, interest rates, online services, and branch accessibility. Research customer reviews to gauge overall satisfaction.

Q3. What are the most important features you want to consider when shopping for a bank?

Ans: Essential features when shopping for a bank include low fees, competitive interest rates, diverse account options, user-friendly online banking, and responsive customer service. Assessing ATM availability and mobile app functionality is crucial.

Ans: A good bank offers low fees, competitive interest rates, a variety of accounts, convenient online services, and excellent customer service. It should align with your financial goals, providing reliable and transparent banking solutions.

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For exporters, eBRC (Electronic Bank Realization Certificate) is a key compliance document that serves as proof of payment received from abroad for exported goods or services. It is especially important for goods and software exporters covered under SOFTEX.

In this blog, we’ll break down what eBRC is, why it matters, how to obtain it, and everything else you need to know.

An eBRC (Electronic Bank Realization Certificate) is digital proof that your bank issues once you receive payment for an export. Simply put, it confirms that you’ve been paid for your goods or services.

This certificate is important because it helps you report your earnings, file taxes easily, and even access government benefits meant for exporters including low-cost loans, subsidies, duty exemptions and more.&nbsp;Since eBRC includes all the transaction details, it also makes compliance with authorities like the Income Tax Department smooth and hassle-free.

Before eBRC, getting a <a href="https://www.skydo.com/blog/bank-realisation-certificate-all-you-need-to-know">Bank Realization Certificate (BRC)</a> was a tedious process. Exporters had to visit their bank, apply for a physical BRC, and then submit it to the Directorate General of Foreign Trade (DGFT). The DGFT would manually enter transaction details, making the process slow and complicated—especially for claiming export incentives.

In 2012, the DGFT introduced e`BRC, eliminating the need for physical visits and paperwork. Now, banks issue BRCs digitally, making it faster, easier, and more efficient for exporters to claim benefits and comply with regulations.

In India, banks issue an -BRC to exporters through the following process.

How do you check the eBRC status on the DGFT Website?

Here are the steps to check the status of your eBRC (Electronic Bank Realization Certificate) online.

DGFT has made it mandatory for all exporters to apply for and receive the eBRC to demonstrate that they have received payment for their exported goods or services per DGFT regulations.

The eBRC system provides a digital record of export transactions, making it easier for exporters to maintain and retrieve records for audit and compliance.  Additionally, exporters can avoid visiting the bank and DGFT offices.&nbsp;

One of the main reasons exporters apply for the eBRC is to reap the benefits of various export benefits offered by the Indian government under its Foreign Trade Policy. Submitting an eBRC allows the exporters to be eligible for benefits such as low-cost loans, duty exemptions, subsidies, etc.&nbsp;

Enhancing transparency and accountability

The Indian government and authorities such as the Income Tax Department and the DGFT constantly monitor and manage the country's foreign exchange reserves and tax filing. Issuing e-BRC ensures that the foreign exchange earned through exports is accurately reported and accounted for with effective tax filing.&nbsp;

How to Claim Export Incentives using eBRC

In India, the DGFT decides on the value of the incentives which an exporter can seek under the various export benefits. The value is decided by analysing the Free on Board (FOB) of the exported goods and services mentioned in the shipping bills, and the total received payments per the eBRC.&nbsp;

Here's how you can claim these benefits with eBRC:

However, you must ensure that the bank has submitted an error-free e-BRC and it reflects the consolidated realisation value. Furthermore, you must enter freight values, insurance and commission values in the refund application, as the e-BRC excludes such values.&nbsp;

Here are some key resources and tools that can help you in your endeavour to obtain your e-BRC.

eBRC is a crucial certificate issued by the bank and verified by the DGFT for streamlining the payment procedure for exporters and working as an income proof for better transparency and tax filing.&nbsp;

It is mandatory for an exporter receiving payments for the export of goods and services to apply for eBRC and ensure that the bank uploads it on the DGFT website. Utilising the eBRC, exports can present their eligibility for various export incentives and increase their profit margin.&nbsp;