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

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Rohit Khuranna

Whether you’re a business exporting goods or services globally, or a freelancer working with international clients, it's essential to share the appropriate purpose code for inward remittance with your bank or payment processor to receive your international payments smoothly.

In this article, we'll explore the purpose code for inward remittance, understand why purpose codes are important, and how to find the right purpose code for your inward remittance for your transactions. And yes, we know finding the right <a href="https://www.skydo.com/blog/what-is-purpose-code-and-why-is-it-required">Purpose code</a>&nbsp;from the purpose code list can be confusing, that’s why we have built a purpose code finder tool to help you find the right code from the purpose code for inward remittance list without losing your mind!&nbsp;

So let’s jump straight in and explore everything you need to know about purpose codes!

Simply put, a purpose code is an alphanumeric code assigned to every type of international transaction to indicate the nature and purpose of the fund transfer.&nbsp;The RBI offers a purpose code for inward remittance and a purpose code list for outward remittance, covering all the necessary codes for international transfers. These codes ensure each transaction is properly classified.

What is Purpose Code for Inward Remittance?

As we mentioned, RBI offers purpose code for both inward remittance and outward remittance. Whether you are receiving personal transfers or <a href="https://www.skydo.com/blog/how-to-receive-international-payments-in-india">international payments</a>, it has to be tagged with the appropriate purpose code

For instance, if you're a tech service provider receiving payment from international clients for providing software consultancy, you should use code <a href="https://www.skydo.com/blog/p0802-purpose-code-guide">P0802. </a>Alternatively, if you receive your salary from a foreign company while working remotely in India, purpose code P1401 will apply.&nbsp;

In India, businesses and freelancers use purpose code for inward remittance to specify why they’re receiving international payments. This helps RBI and other authorities understand each transaction precisely, ensuring accurate reporting and compliance with regulations.

How to Find the Right RBI Purpose Code for Your Inward Remittance?

Finding the right code for your foreign remittance can be confusing, thanks to technical jargon and overlapping descriptions. Having assisted over 3,000 businesses and customers, we understand this challenge well.

To ensure accuracy, clearly define your transaction's purpose and stay updated with the <a href="https://www.rbi.org.in/upload/notification/pdfs/52220.pdf?no_follow=true">RBI's purpose code list.</a>

Or, use our Purpose Code Finder tool! It simplifies the process, helping you quickly find the correct code for your payments.

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.

Purpose code list for outward remittance contains purpose codes that are used while making an international transfer. These purpose codes signify the purpose for which you are making the transfer. Purpose codes for outward remittance start with S followed by the respective numericals.

For example, S0301 is a purpose code for outward remittance that is used when sending money abroad for business travel. You can find the purpose code list for outward remittance<a href="https://www.hdfcbank.com/content/bbp/repositories/723fb80a-2dde-42a3-9793-7ae1be57c87f/?path=/Personal/Pay/Cards/Forex%20Card/PDFs/List_of_Purpose_Codes_Outward_Remittance_Forex_Sale_Transactions.pdf"> right here</a>.&nbsp;

Why Do You Need to Use an RBI Purpose Code?

For exporters, sharing the correct purpose code for inward remittance from the RBI purpose code list with their banks is crucial for receiving international payments. An incorrect RBI purpose code can result in delays or even cancellation of the transaction. And, while it is not very common, in some instances, sharing the incorrect purpose code can also lead to compliance issues later on for exporters. That's why it is always advisable for exporters and freelancers to choose the correct code from the purpose code list of inward remittance.&nbsp;

Beyond these practical reasons, purpose codes are instrumental in monitoring global payments and preventing suspicious activities. Here’s how:

Common RBI Purpose Codes for Inward Remittance for Freelancers, Businesses, and Agencies

While there are over 150 RBI purpose codes for inward remittance, we break down below some of the commonly used ones especially for freelancers, businesses and agencies:

RBI Category:&nbsp;Computer &amp; Information Services

RBI Description:&nbsp;Software implementation/consultancy  (other than those covered in SOFTEX form)

When to use:&nbsp;This code signifies a foreign payment in exchange for software consultancy or implementation service, provided to a foreign client. It's important to note that P0802 applies specifically to software consultancy or implementation services that are not reported under the <a href="https://vjmglobal.com/fema/fema-fema/introduction-to-software-export-declaration-softex-form/?no_follow=true">SOFTEX form.</a> If your services fall under SOFTEX, a different code might be used.

RBI Description:&nbsp;Realisation of export bills (in respect of goods) sent on collection (full invoice value)

When to use:&nbsp;This code is used when an Indian company exports goods and receives payment for the full invoice value. Note that this purpose code is applicable only when the foreign client has received the shipment.

RBI Description:&nbsp;Advance receipts against export contracts (export of goods only)

When to Use:&nbsp;This is used when businesses receive advance payment against the contract of the goods to be exported. In other words, here the company receives payment for goods before they are shipped.

RBI category:&nbsp;Other Business services

RBI Description:&nbsp;Business and management consultancy and public relations services

When to Use:&nbsp;This code is applicable when an exporter receives payment against providing a combination of business expertise and/or public image management services to a foreign client.

RBI Category:&nbsp;Other Business services

RBI Description:&nbsp;Advertising, trade fair, market research and public opinion polling services

When to Use:&nbsp;This code is used when exporters receive a payment from a foreign client for providing  advertising, trade fair, market research or public opinion polling services.

RBI Description:&nbsp;Value of export bills negotiated/purchased/discounted etc. (covered under GR/PP/SOFTEX/EC copy of shipping bills etc.)

When to Use:&nbsp;P0101 is used when an Indian company exports goods and receives a foreign payment that is usually backed up by official export documentation like GR, PP, SOFTEX, or EC copy of shipping bills.

RBI Description:&nbsp;Goods sold under merchanting / Receipt against export leg of merchanting trade*

When to Use:&nbsp;This purpose code for inward remittance applies to situations where an Indian company acts as a middleman in an international trade transaction, but the goods themselves never physically enter India.

RBI category:&nbsp;Computer &amp; Information Services

RBI Description:&nbsp;Hardware consultancy

When to Use:&nbsp;This code is used when exporters receive foreign payment for providing hardware consultancy or implementation services abroad.

When to Use:&nbsp;This purpose code for inward remittance is used for foreign exchange transactions related to business travel, particularly when someone converts currency for a work trip abroad.

RBI Description:&nbsp;Off-site Software Exports

When to Use:&nbsp;This code signifies that an Indian company is receiving payment for software development or IT services provided to a foreign client, but the work itself is done in India.

What Happens If You Use the Wrong RBI Purpose Code for Inward Remittance?

Whether you're a large enterprise billing thousands of dollars or a freelancer getting your first payment, you will not be able to receive inward remittance without sharing the relevant purpose code for inward remittance with your bank or financial institution.&nbsp;

When you share the purpose code, the bank’s internal team reviews it. If they find it incorrect, they may reject it, especially if the remittance amount is significant, leading to the cancellation of the transaction. More often, banks will ask you to revise the application and submit the correct purpose code, but this back-and-forth can cause significant delays in the transaction.

Beyond financial consequences, providing an incorrect code can also lead to legal trouble. Suppose you provide an incorrect purpose code for inward remittance and the bank processes it. In that case, the discrepancy can be discovered later during an audit of the bank, or of your business. And if it's found that the incorrect code was deliberately used to bypass compliance, you could face serious legal issues.

To avoid these problems, ensure you thoroughly understand the relevant purpose codes and select the correct one. If you have any questions or doubts, it's always best to seek professional advice.

If you handle multiple foreign clients and regularly send out invoices, manually entering purpose code for inward remittance can not only be tedious but also prone to errors. With Skydo’s auto-filled purpose codes, you eliminate manual effort and reduce the chances of sharing an incorrect purpose code. Skydo remembers your default purpose code and automatically prefills it for future invoices.&nbsp;

Switch to Skydo today and experience the advantage of hassle-free, transparent international payments.

Decoding RBI Purpose Code: Essential Guide

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India’s service export industry is booming and how.&nbsp; As of 2023, India's service exports soared by an impressive <a href="https://economictimes.indiatimes.com/news/economy/foreign-trade/indias-services-exports-grow-11-4-in-2023-unctad-report/articleshow/109602819.cms?from=mdr">11.4%</a>, outpacing China and hitting a remarkable <a href="https://economictimes.indiatimes.com/news/economy/foreign-trade/indias-services-exports-grow-11-4-in-2023-unctad-report/articleshow/109602819.cms?from=mdr">$345 billion</a>!

A major driver of this exponential growth is the Indian government's proactive strategy to boost exports. Recognizing the potential of the services sector, the government launched initiatives like the <a href="https://www.dgft.gov.in/CP/?opt=seis">Service Exports from India Scheme (SEIS) </a>to give Indian service exporters a competitive edge in the global market. So, without much ado, let’s dive into the what, why, and who of SEIS.

Understanding SEIS and Its Importance for Service Exports

SEIS, or its full form, Service Exports from India Scheme, was introduced by the Directorate General of Foreign Trade (DGFT) on April 1, 2015. It's a reward-based incentive program designed to boost India's service exports.&nbsp; In this blog, we will be breaking down the details of what these rewards and incentives are, what are the eligibility criteria for availing SEIS,&nbsp; how you can apply for the scheme, and more. &nbsp;You can also find the detailed guidelines for this scheme in Chapter 3 of the <a href="https://content.dgft.gov.in/Website/FTP%20Chapter%203%20as%20on%20June%2030%202019.pdf">Free Trade Policy 2015-20.&nbsp;</a>

The Service Exports from India Scheme (SEIS) supports service exporters by granting them Duty Credit Scrips. These scrips are certificates issued by the government that exporters can use to pay <a href="https://delhicustoms.gov.in/files/tughlakabad-imports/public-notices/SCAN0220.PDF">various taxes and duties</a> associated with exporting services from India. The value of these scrips is<a href="https://nacin.gov.in/resources/file/e-books/Service%20Exports%20from%20India%20Scheme%20(SEIS).pdf"> 3% or 5% </a>of the exporter’s <a href="https://content.dgft.gov.in/Website/FTP%20Chapter%203%20as%20on%20June%2030%202019.pdf">net foreign exchange earnings</a>—the total foreign exchange earned by an exporter minus all expenses incurred.

For example, if a service exporter’s net earnings are Rs. 10,00,000 for a particular order, they can receive Duty Credit Scrips worth Rs. 30,000 to Rs. 50,000, depending on the type of export services.

These Duty Credit Scrips can significantly reduce the cost of exporting services by covering various customs duties and taxes, thereby boosting profit margins. Since the scrips are based on foreign exchange earnings, they also provide a buffer against foreign exchange risks and uncertainties in international trade.

Eligibility Criteria for SEIS Participation

Here are the eligibility criteria for exporters to register themselves for the SEIS scheme:

Note that if you receive foreign remittances against the following activities, you will not be eligible for SEIS:

Here is a <a href="https://nacin.gov.in/resources/file/e-books/Service%20Exports%20from%20India%20Scheme%20(SEIS).pdf">detailed table with major services and rates of rewards</a> under the SEIS scheme:&nbsp;

Application Process for SEIS Benefits&nbsp;

If you're a <a href="https://www.skydo.com/blog/guide-for-tech-exporters-on-global-compliance?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">service exporter</a> aiming to avail of benefits under the SEIS scheme, here's a breakdown of the application process:

4. Last Date For Filling Application&nbsp;

There’s no doubt that it is only onwards and upwards for Indian exporters from hereon. However, despite government initiatives, service exporters often lose a chunk of their earnings due to hefty bank and forex charges on international payments.

At <a href="https://www.skydo.com/">Skydo</a>, we're dedicated to helping exporters retain more of their hard-earned money. With a flat, minimal transaction fee and zero forex or hidden charges, Skydo ensures that receiving international payments is both cost-effective and seamless. Make the switch to <a href="https://www.skydo.com/">Skydo</a> today and feel the difference.

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With global connectivity on the rise, seamless international payments have become more essential than ever.&nbsp; Wise (formerly TransferWise) has been a game-changer, simplifying international transfers for millions worldwide. In this blog, we’ll explore Wise’s key features and dive into the top 5 Wise alternatives, comparing how they stack up in facilitating seamless global payments.

Wise (<a href="https://www.skydo.com/blog/transferwise-india-features-benefits-pros-cons">formerly TransferWise</a>) is a global money transfer platform operating worldwide. While it initially started out as a peer-to-peer (P2P) remittance service, <a href="https://wise.com/?no_follow=true/">Wise</a> has since diversified its offerings to cater to businesses by introducing multi-currency accounts for both individuals and enterprises.&nbsp;

P2P and B2B Transfers:&nbsp;Wise supports both P2P and B2B transfers, making it suitable for personal and business payments. However, the pricing varies between the two&nbsp;

Virtual International Accounts:&nbsp;Wise provides virtual international accounts for B2B payments, supporting multiple currencies like USD, AUD, and more.

Debit/Expense Card: Wise also offers debit/expense cards, which can be used in 175+ countries. However, Wise Debit Card is not currently available for Indian residents.&nbsp;

Mid-Market Exchange Rate:&nbsp;Wise provides mid-market exchange rates with no added forex markup during currency conversion.

Instant FIRA at an Extra Cost:&nbsp; Wise offers FIRC for every transaction but it levies a fee for it, which varies across currencies but is the equivalent of $2.50 for every FIRA.

Wise Fee: Wise's fee varies across currencies,&nbsp; but broadly speaking, it can be around 1.6-1.8% of the transfer amount. For example, if you receive a payment of USD 10,000, Wise will charge around<a href="https://wise.com/in/business/receive-money?no_follow=true"> USD 162 for the same</a>, plus an additional fee for FIRA.&nbsp;

Limit per invoice: With Wise, you can request upto $10,000. per invocie

Wise caters to both personal and business transfers, making it ideal for freelancers, small businesses, and individuals. Freelancers often prefer Wise for receiving international payments, while the Wise card is a convenient option for seamless transactions while travelling abroad

Now, that we have had a quick overview of Wise, let's take a look at a few of the leading alternatives to Wise and see how you can be wiser while receiving international payments.&nbsp;

What are 5 Wise Alternatives for Receiving International Payments?

In the following sections, we will explore these wise alternatives in detail to see if they are your right choice for receiving international payments

Skydo is a wise alternative that simplifies cross-border payments for freelancers and medium/small businesses in India. It offers virtual international bank account details to its users in under 5 minutes and also supports an entire payments ecosystem consisting of payment tracking, invoice generation and more.

Virtual International accounts: Skydo offers virtual international accounts in key regions like the US, UK, Europe, Australia and more.&nbsp;

Live Forex Rate: Skydo offers live forex rate without any forex markup or currency conversion fee.&nbsp;

Invoice Creation and Payment Tracking:&nbsp;Skydo simplifies international payments with tools like an intuitive invoice maker and real-time payment tracking, ensuring transparency every step of the way

Flat and Transparent pricing:&nbsp;Skydo offers flat, transparent pricing for transfers up to USD 10,000, regardless of the payment amount: USD 19 for transfers up to USD 2,000, and USD 29 for transfers between USD 2,001 and USD 10,000. For payments above USD 10,000 S

Free and Instant FIRA:&nbsp;The platform provides <a href="https://www.skydo.com/blog/all-you-need-to-know-about-firc-a-complete-guide">instant FIRA </a>for every transaction, completely free, simplifying compliance for businesses.

Local Customer Support:&nbsp;Each skydo user is assigned a local representative to assist with the onboarding process and to address any questions at any time.

Inward Remittance Only:&nbsp;Skydo currently supports only inward remittances, meaning you can receive international payments in India but cannot send payments abroad using Skydo

Not Best for Smaller Transfers: Skydo might also not be the most cost-effective pick for smaller transfers, essentially for transfers below USD 1000

Skydo is a strong Wise alternative for businesses seeking fast and cost-effective international payments in India. With its user-friendly interface, features like payment tracking and an integrated invoice maker, and robust customer support, Skydo is an ideal choice for both freelancers and established businesses to receive seamless global payments

<a href="https://www.skydo.com/blog/paypal-in-india-charges-review-alternatives">PayPal</a> is a go-to payment solution worldwide and a viable wise alternative, both for personal and business transactions. It offers multiple payment options with a wide range of ancillary services

Personal and Business Transfers: Like Wise, Paypal also supports both b2b and p2p transfers worldwide.&nbsp;

Buyer and Seller Protection Programme:&nbsp;PayPal provides buyer protection for missing or misrepresented items and seller protection in India for unauthorized transactions or undelivered shipments.&nbsp;

Robust Security:&nbsp;The platform also enforces strict security measures, including 24/7 account monitoring, to ensure the safety of funds.

Global credibility:&nbsp;With its credibility and global reach, PayPal is a trusted platform for making and receiving international payments.

Free monthly FIRA:&nbsp;PayPal provides Indian businesses with free monthly digital FIRA. All international transactions of the previous month will be referenced in a single FIRA, which will be available by the 15th of the subsequent month.

Wide Range of Services: Beyond a remittance platform, PayPal offers a wide range of services, including e-commerce integration, invoice management, etc.&nbsp;

PayPal Transaction Fees: <a href="https://www.skydo.com/blog/paypal-transaction-fees-india">PayPal levies a 4.4% transaction fee</a> plus a small fixed fee for receiving international payments.&nbsp;

&nbsp;Currency Conversion Fee: Along with the transaction fee, PayPal also levies&nbsp;an additional 4% markup on the exchange rate.

Limited Features in India: A lot of PayPal features like domestic transactions, PayPal Credit, aren't available in India

PayPal is a trusted choice for those seeking flexible payment options. Its ability to handle multiple payment methods and numerous integrations makes it ideal for businesses looking to streamline their payment processes and manage finances effortlessly.&nbsp;

Founded in 2005, <a href="https://www.skydo.com/blog/payoneer-payment-gateway-features-fees">Payoneer</a>&nbsp;is quickly becoming a popular payment solution for businesses and freelancers worldwide.&nbsp;

Virtual International Accounts: Like Wise and Skydo, Payoneer also offers virtual international accounts in multiple currencies.&nbsp;

Multiple Integrations:&nbsp;Payoneer integrates seamlessly with various e-commerce platforms and marketplaces, including Walmart, Fiverr, and Toptal."

Free Digital FIRA: Payoneer offers free digital FIRA for every international payment.&nbsp;

Payoneer Fees: <a href="https://www.payoneer.com/en-in/about/pricing/?no_follow=true">Payoneer's fees </a>vary across payment methods:

Payoneer is a viable wise alternative for businesses with clients or operations across multiple regions. Ecommerce businesses can also streamline their finances with Payoneer’s seamless integration with platforms like eBay, and Shopify, and freelancers can also benefit from Payoneer's integration with Fiverr, Toptal etc.&nbsp;

Founded in 2010 by entrepreneur brothers Joseph and Patrick Collison,<a href="https://www.skydo.com/blog/stripe-india-charges-review-alternatives"> Stripe</a> is an Irish-American company that simplifies global payments for businesses.

Multiple Currency Support: With Stripe businesses can receive international payments in over 135 currencies

Big Suite of Payment Solutions: Beyond facilitating international transfers, Stripe offers a whole suite of payment solutions like invoice management, subscription management, fraud detection and more.

Flexibility:&nbsp; Stripe provides the flexibility to generate instant payment links or embed its checkout solution directly on your website, supporting both one-time and recurring transactions.

Ease of Use:&nbsp; Businesses praise how simple it is to embed Stripe on their websites and appreciate features like subscription management and invoicing.

Invite only in India:&nbsp;Stripe operates on an 'invite-only' basis in India, requiring new businesses to request approval. The timeline for approval is unclear, and Stripe currently supports only a limited number of businesses.

Card Support in India only: While Stripe supports a variety of payment methods globally, Indian businesses are limited to accepting international payments via cards.&nbsp;

Stripe Charges:&nbsp;<a href="https://www.skydo.com/blog/stripe-fees-india">Stripe India charges</a> a 4.3% processing fee per successful transaction. Additionally, there’s a 2% currency conversion fee for payments in foreign currencies.

No FIRA provided: Stripe doesn't offer FIRA for international payments in India, making compliance difficult for businesses.&nbsp;

Stripe is best suited for businesses looking for an all-in-one payment management platform. However, with Stripe becoming invite only in India, it is advisable to look for a more accessible wise alternative in India.&nbsp;

Established in 2015, <a href="https://in.pingpongx.com/in/index?no_follow=true/">PingPong</a>&nbsp;is a wise alternative aiming to simplify international payments for freelancers, businesses, and e-commerce sellers.

Virtual International account: Ping Pong too provides virtual international accounts in multiple regions

Partnership with leading e-commerce platforms: PingPong has integrated with many e-commerce platforms including Walmart, Shopify and more.

Integrated Tax Payment: Ping Pong lets users pay VAT/GST and other taxes with no additional costs.

Digital FIRA: Ping Pong offers digital FIRA for international payments at no additional cost.&nbsp;

PingPong Charges:&nbsp;PingPong charges a 1% transaction fee, so for a payment of 10,000 USD, the transaction fee would be 100 USD.&nbsp;

Exchange Rate Transparency: PingPong’s exact forex rate is not publicly detailed, which means there may be differences compared to the mid-market rate.

PingPong is an apt wise alternative for both freelancers and particularly e-commerce sellers thanks to their integration with multiple marketplaces.&nbsp;

Receiving International Payments with Wise Vs Skydo: A Quick Comparison

Both Wise and Skydo are viable solutions for receiving international payments in India. Let us quickly compare how much would it cost to receive USD 10,000 in India with Wise vs. Skydo:

Wise offers mid-market exchange rates without forex markup but adds a conversion fee that varies across currencies and levies an additional charge for FIRC.This is how much you will be paying to receive USD 10000 in India with Wise

Skydo converts your payments at live forex rate, without any markup. It offers a flat fee structure of USD 19 for payments under USD 2000 and USD 29 for payments between USD 2001 and USD 10,000. Additionally, it offers instant FIRC for every transaction that too absolutely free.&nbsp; So with Skydo, receiving USD 10000 would just incur USD 29+GST, saving you more than USD 100 dollars in fees as compared to Wise.&nbsp;&nbsp;Make the smarter, cost-effective choice—switch to Skydo today and keep more of what you earn!

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Wise alternative

So you're a freelancer now. Great; the timing couldn't have been more right. According to a report by Nasscom Aon, the gig workforce will be <a href="https://timesofindia.indiatimes.com/city/bengaluru/tech-gig-economy-grows-india-to-have-23-5-million-workers-by-2030/articleshow/111048791.cms">23.5 million strong by 2030</a>. It was 7 million in 2021, that will be like 3x growth.

But the freelance boom highlights a big question: Do you have the right banking set up to support your business?&nbsp; Because you need a banking solution with international payment transfers, business expense tracking, professional invoicing systems, and freelancer-specific tax compliance requirements. Start by taking the first step, choosing between a savings vs current account.

Key Differences Between Current Account and Savings Account

One of the best ways to know the differences between a current account vs savings account is to compare their fundamental points. The following table just does that. 

Current Account vs Savings Account: Quick Takeaways

Before we move to the next section, let’s quickly summarize what we learned from the above comparison table.

Why Growing Freelancers Would Need a Current Account?