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.

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Tax Deducted at Source (TDS) on international payments in India is applicable when payments are made to non-residents. The rates of TDS and the specific provisions governing international payments are outlined in Section 195 of the Income Tax Act.

However, certain factors can allow you to reduce the TDS, which you will learn in this blog.&nbsp;

Nature of payments and applicable rates: DTAA

DTAA is particularly relevant in international transactions, where income may be subject to taxation in both the source countries. DTAA covers the following categories:&nbsp;

The rates depend on the tax treaties agreed upon by the two countries. The TDS rates on interest earned range from 7.50% TO 15%.&nbsp;

What is the TDS return for foreign payments?

Under section 195, it is mandatory for any person making foreign payments to a non-resident to obtain a TAN and deduct tax at applicable rates. Once deducted, the payer must deposit the tax with the government against the payee's PAN.&nbsp;

Furthermore, the payer must also fill out a TDS return using Form 27Q, which is a declaration of TDS deducted on payments other than salary to non-residents.&nbsp;&nbsp;

Strategies to Reduce TDS on International Payments

Here are the strategies to reduce TDS on international payments and ensure that you decrease the cost of international payments:&nbsp;

Section 195 of the Income Tax Act Of 1961 details the TDS provisions in case of an Indian resident making a payment by way of interest or any other amount to an NRI or foreign company. Here, the payment amount should be other than salary, and there is no threshold limit to deduct TDS under the section.&nbsp;

TDS is deducted at either of the following rates:&nbsp;

Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) Changes from 1st July 2023

It is important to check the latest notifications and updates from the tax authorities to stay informed about any changes to due dates or procedures related to TDS filings. Compliance with TDS regulations is critical for avoiding penalties and maintaining a smooth relationship with tax authorities.

The Income Tax authority can levy a minimum penalty of Rs 10,000 and a maximum penalty of Rs 1,00,000 for non-payment of TDS in a timely manner.&nbsp;

In conclusion, managing <a href="https://www.skydo.com/blog/minimise-TDS-foreign-payments?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">Tax Deducted at Source (TDS)</a> on international payments requires financial efficiency and a nuanced understanding of the Income Tax Act, Double Taxation Avoidance Agreements (DTAA), and relevant tax provisions. If you have any confusion, it is better to contact a tax professional.&nbsp;

Q1. Is TDS applicable for foreign payments?

Ans: Under section 195, TDS applies to foreign payments to non-residents.&nbsp;

Q2. How do you deduct TDS for international contractors?

Ans: Although it is mandatory to deduct TDS on international payments Under Section 195, there are some conditions when it comes to deducting TDS for international contractors. If you are making payments to foreign entities, such as individuals/companies located outside India, you are not required to deduct their TDS.&nbsp;

In such a case, the foreign entities are required to register on the income tax portal as "others" and file form 10F online along with their tax residency certificate. Once it is filed, they must share the form with you for further reference.&nbsp;

Q3. What are the potential consequences of non-compliance with TDS regulations on global transactions?

Ans: Non-payment of timely TDS can result in a minimum penalty of Rs 10,000, which can go up to Rs 1 lakh.&nbsp;

Q4. Are there industry-specific considerations for reducing TDS on international payments?

Ans: Yes, as TDS rates depend on the nature of payment, different industries may have specific types of transactions, revenue models, and contractual arrangements that can influence the approach to managing TDS.

Q5. Can businesses or individuals leverage specific thresholds or exemptions to reduce TDS?

Ans: There are numerous thresholds and exemptions available under section 195 that can be utilized to reduce TDS.&nbsp;

How to Reduce TDS on International Payments

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Welcome to our comprehensive guide that sheds light on the TDS rate chart for the financial year 2024. As we enter the fiscal year 2024, understanding the intricacies of Tax Deducted at Source (TDS) becomes paramount.

Unravelling the complexities of <a href="https://www.skydo.com/blog/minimise-TDS-foreign-payments?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">TDS</a>, this blog aims to empower you with the knowledge to navigate fiscal responsibilities confidently.

Here is the updated TDS rate chart for FY 2023-24:

TDS Rate Charts Where the Company is a Domestic Company

Here is a detailed table for TDS rate charts for a domestic company registered in India:&nbsp;

TDS Rates Applicable for a company other than a Domestic Company

Here is a detailed table for the TDS rates applicable for a company other than a domestic company:&nbsp;

TDS is a system where tax is deducted at the source of income, and compliance with the prescribed rates is essential to ensure smooth financial operations. It is important to adhere to the prescribed TDS rates, a legal requirement under the <a href="https://www.skydo.com/blog/withholding-tax-india-all-you-need-to-know?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">Income Tax Act</a> of 1961, as failure to comply may result in penalties and legal consequences.

Hence, knowing the correct TDS rates is essential for businesses to carry out financial transactions smoothly. It helps in accurate budgeting and financial planning and prevents disruptions due to legal issues.&nbsp;

Ans: The current TDS rate chart depends on the nature of the expense under specific sections. You can find more details about the TDS rate chart by navigating to the section ‘TDS Rate Chart for FY 2023-24’ in the above blog.&nbsp;

Q2. What are the TDS rates for freelance services?

Ans: For freelance services, TDS is deducted under the ‘Professional and Technical Services’ in the ITR, which is 10% of the total payments received.&nbsp;

Ans: Tax Deducted at Source (TDS) is a mechanism through which the government collects income tax at the source of income itself. On the other hand, Tax Collected at Source (TCS) is a similar concept to TDS, but it involves the collection of tax at the source of the sale of specified goods or services.

Ans: Under section 194N, cash withdrawal exceeds a certain amount (limit- Rs 1 crore). In case Rs 20 lakh or more is withdrawn by the person who has not filed an ITR for the last three years, for which the due date of filing the ITR has expired, the TDS rates shall be applicable as per the below slab:a) amount more than Rs.20 lakh but up to Rs. 1 crore: 2%b) amount exceeding Rs. 1 crore: 5%

Ans: TDS is calculated using the following formula: TDS Amount = Payment Amount x ( TDS Rate/100 ​ )

Ans: Tax Deducted at Source (TDS) in salary refers to the process of deducting income tax from an employee's salary at the source itself, i.e., by the employer.

Q7. Does the TDS rate change every financial year?

Ans: It is not mandatory to change the TDS rates every year. However, every year, when the Finance Minister presents the budget, various changes are generally introduced in relation to TDS.&nbsp;

Ans: A Tax Deducted at Source (TDS) certificate is an official document issued by the deductor (the person responsible for deducting TDS) to the deductee (the person from whose income TDS is deducted). The certificate details the TDS deducted and deposited with the government during a particular financial year.

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GlobalTech Solutions, an I.T. service export provider headquartered in India, secured a contract with a client in Germany. As GlobalTech Solutions progressed with the project and submitted their invoices for the services rendered, they were surprised to receive reduced payments from their client in Germany. The unexpected reduction in revenue not only strained their financial resources but also affected their profit margin.&nbsp;

Upon further investigation, they discovered that the client deducted withholding tax. Typically, the payer deducts this tax amount before remitting the funds to the non-resident service provider. GlobalTech Solutions was unaware of this fact initially.

While they lost a certain amount due to a tax compliance oversight, you can avoid such financial setbacks by learning everything you need to know about withholding tax in this guide.&nbsp;

Withholding tax is the amount deducted at the payment source by the payer before remitting the amount to the recipient. This tax amount is paid directly to the government.&nbsp;

In India, withholding tax takes the form of <a href="https://www.skydo.com/blog/ways-to-ensure-zero-tds-leakage?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">Tax Deducted at Source (TDS)</a> for domestic transactions. However, withholding tax in international or cross-border transactions includes collecting taxes from non-residents on income generated within their jurisdiction.

Withholding tax requires the payer to hold back a certain percentage of the payment and remit it to the tax authorities on behalf of the recipient. This tax withholding serves as a prepayment of the recipient's tax liability.&nbsp;

Tax expert and CA, <a href="https://www.linkedin.com/in/juhi-shah-633127154/">Juhi Shah</a>, states, "Withholding tax ensures that non-resident individuals or entities contribute their fair share of taxes on income earned within a country's borders. Therefore, proper withholding tax compliance is not just a legal obligation but an essential component of responsible tax management."

Let’s consider an example of a software development company based in India providing I.T. services to a client based in the USA. The agreed-upon fee for the services is $10,000. However, the USA imposes a <a href="https://taxsummaries.pwc.com/united-states/corporate/withholding-taxes">30% withholding tax</a> on payments made to non-resident service providers.&nbsp;

When the software development company invoices the client for $10,000, the client must withhold 30% of that amount ($3,000) as withholding tax. Thus, the client remits $7,000 to the software development company.&nbsp;

Other countries, like The United Kingdom, <a href="https://www.dentons.com/en/services-and-solutions/global-tax-guide-to-doing-business-in/united-kingdom">impose 20%</a> on certain interest payments, rents or royalties. <a href="https://taxsummaries.pwc.com/australia/corporate/withholding-taxes">In Australia</a>, withholding tax applies to payments made to non-residents for certain types of income, such as dividends, interest, royalties, and fees for the performance of entertainment or sports activities. The withholding tax rate is generally 10%.

However, the landscape of international tax laws is complex and dynamic. Each country has its regulations and tax rates. Therefore, in the previous example, while the client deducted withholding tax in the US, the remaining income of $7000 may be subject to another form of tax in India. This phenomenon is known as double taxation.

This form of taxation applies to the same income in two or more jurisdictions. It can happen when income is subject to tax in the country where it is earned and then again in the country where the taxpayer resides.

Offering tax credits or exemptions can avoid or minimise double taxation. Therefore, countries enter into double tax treaties that aim to provide relief to taxpayers by specifying rules for allocating taxing rights.&nbsp;

According to <a href="https://www.oecd.org/en/topics/tax-treaties.html?no_follow=true">a report</a> by the Organization for Economic Co-operation and Development (OECD), more than 3,000 double tax treaties are in effect worldwide, reflecting the intricate nature of international taxation.&nbsp;

Then, how can you <a href="https://www.skydo.com/blog/cut-international-transaction-costs?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">avoid losing your business’s hard-earned money</a> in international taxes?&nbsp;

Imagine a tech company in India called ABC Tech Solutions. They provide tech services to companies around the world. One of their clients, XYZ Corporation, owes them Rs 1,000,000 for services.

As per RBI rule, before paying this money to ABC Tech Solutions, XYZ Corporation can set aside a portion for taxes. Let's say it's 10%, which amounts to Rs 100,000. So, instead of paying the full Rs 1,000,000 to ABC Tech Solutions, XYZ Corporation pays Rs 900,000 and keeps Rs 100,000 separately for taxes.

It's now XYZ Corporation's responsibility to give this Rs 100,000 to the government as withholding tax. They're holding onto it on behalf of ABC Tech Solutions.

ABC Tech Solutions, receive Rs 900,000 in their account, but they know that Rs 100,000 has been kept aside for taxes by XYZ Corporation. When ABC Tech Solutions files its income tax return, it can show this Rs 100,000 as a credit.&nbsp;

It helps them because they've technically already paid some tax through XYZ Corporation's withholding.

Let's discuss the current rates for withholding tax paid by non-resident individuals. The following rates are applicable.

These rates apply to countries without a Double Taxation Avoidance Agreement (DTAA) with India.

What Is the Difference Between Withholding Tax and TDS?

Let's break down the key differences between Withholding Tax (WHT) and Tax Deducted at Source (TDS).

In India, a withholding tax certificate is a document acknowledging the deduction of taxes at the source. It is issued by the payer to the payee, confirming the amount withheld from payments made. This certificate is crucial for the recipient to claim credit for the deducted tax while filing income tax returns.&nbsp;

It includes details such as the payer and payee's information, the amount paid, the applicable tax rate, and the actual tax withheld. This certificate serves as evidence of tax compliance and ensures transparency in financial transactions, facilitating accurate reporting and adherence to regulatory requirements in India's taxation framework.

Calculating withholding tax involves a series of steps to ensure that the appropriate amount of tax is deducted from a payment. Here's a breakdown of the process:

Tips/Best Practices for Managing Withholding Tax Obligations&nbsp;

The following tips can help overcome the complexities of international tax laws, varying tax rates, and evolving regulations concerning withholding tax.

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International Payment Service Providers and Withholding Tax

<a href="https://www.skydo.com/blog/online-payment-gateway-service-provider-opgsp?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">Payment service providers</a> are crucial in helping businesses navigate withholding tax issues when engaging in international transactions. They often offer built-in tools for calculating and deducting withholding tax from payments, ensuring accuracy and compliance.&nbsp;

They also provide reporting functionalities that generate comprehensive tax reports, simplifying documentation. Additionally, they may offer tax advisory services or collaborate with tax experts to navigate complex tax regulations.

This way, you can safeguard your business’s financial interests, maintain regulatory compliance, and foster successful international business relationships.

Q1. How might currency fluctuations affect my withholding tax obligations as an IT service provider?

Ans. Withholding tax is typically calculated based on the payment amount in the local currency. Exchange rate fluctuations can affect the tax liability.

Q2. How can I determine if a client's country has a tax treaty with my country to avoid double taxation?

Ans. You can refer to both countries' official tax authorities' websites to determine if a client's country has a tax treaty with your country. Alternatively, you can seek assistance from tax professionals who can analyse the specific treaty provisions applicable to your situation.

Q3. What are the consequences of non-payment of withholding tax?

Ans. Non-payment of withholding tax leads to severe consequences, including penalties and legal actions. It can result in financial losses, reputational damage, and complications with tax authorities, impacting a company's operations.

Q4. How does the nature of my IT export services affect the withholding tax? Are there specific exemptions I should be aware of?

Ans. The nature of your IT export services can impact the applicability of withholding tax and potential exemptions. Some countries may have specific provisions or exemptions for certain types of services or income.

Q5. What role can a global payment service provider play in helping me manage my withholding tax obligations?

Ans. A global payment service provider facilitates accurate calculation, deduction, and withholding tax reporting. They may provide built-in tools for tax calculations, generate tax reports, and offer compliance support. Collaborating with a reputable payment service provider, like Skydo, can streamline your payment processes and ensure compliance with withholding tax regulations across different jurisdictions.

Q6. What is the due date to file the Withholding returns?

Ans. The due date to file withholding returns is crucial; it typically falls within a month after the end of the quarter in India.

Q7. What is the Withholding tax payment due date?

Ans. Withholding tax payment is due on or before the 7th day of the month following the month of deduction, as per Indian tax regulations.

Q8. How is the assessment of Non-Resident Indians done?

Ans. Assessment of Non-Resident Indians involves evaluating their global income and determining tax liability based on applicable tax rates and treaties.

Q9. Who is responsible for withholding tax?

Ans. The entity making payments is responsible for withholding tax, ensuring deduction, and remittance to the government per the specified rates.

Q10. Which incomes are subject to withholding tax?

Ans. Various incomes, such as salaries, interest, dividends, and royalties, are subject to withholding tax, serving as a mechanism to collect tax at the source before funds are disbursed.

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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>.

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Cash flow problems. Poor investment decisions.&nbsp;

Unplanned levels of debt. Complex international tax laws.&nbsp;

Inefficient operations. And inadequate financial planning.&nbsp;

Such risks in a tech export business are not isolated - they're interconnected and often causative. However, they have a common solution: having a good chartered accountant on your side.&nbsp;

With their finance, taxation, and regulatory expertise, chartered accountants can help you navigate the choppy waters of international business and ensure your enterprise stays afloat. They can help you optimise your finances, reduce your tax burden, and make strategic decisions that position your business for success.

However, it's not just about avoiding pitfalls- a chartered accountant can also help you seize opportunities and chart a course for growth.&nbsp;

9 Ways a Chartered Accountant Can Help Your Tech Export Business

When managing finances, you may face several daunting challenges, especially if you are unfamiliar with the intricacies of international business. While not a miracle worker, a CA can help you with many aspects of financial management or, at the very least, give you sound advice upon which you can act.&nbsp;

CA Ravi Mamodiya, a seasoned chartered accountant professional, explains, “Understanding the numbers in your business is essential, but interpreting them is where the real value lies. From an economic perspective, pricing has a compounding effect on your margins, and distribution costs can impact your sales. Effective communication of these numbers is crucial, and your CA can help you identify areas where your business strategy may be falling short.”

Lean towards your CA when you need assistance in the following areas.

While operating internationally, your tech export business may have to deal with multiple currencies and their highly volatile exchange rates. These fluctuations can significantly impact your bottom line, making it difficult to plan and forecast finances accurately.

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