{"id":1743,"date":"2026-08-10T19:01:24","date_gmt":"2026-08-10T13:31:24","guid":{"rendered":"https:\/\/blog.remitcircle.com\/?p=1743"},"modified":"2026-08-27T15:24:56","modified_gmt":"2026-08-27T09:54:56","slug":"how-to-receive-money-from-abroad-in-india-a-step-by-step-guide-2","status":"publish","type":"post","link":"https:\/\/blog.remitcircle.com\/education\/how-to-receive-money-from-abroad-in-india-a-step-by-step-guide-2\/","title":{"rendered":"How to Receive Money From Abroad in India: A Step-by-Step Guide"},"content":{"rendered":"\t\t
\n\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

The short answer<\/b><\/h2>\n

<\/p>\n

To receive money from abroad in India, you need a <\/span>receiving channel<\/b> (a bank account or a payment platform with international receiving details), a way to make sure the money <\/span>converts at a fair rate<\/b>, and a <\/span>FIRA<\/b> (Foreign Inward Remittance Advice) as proof the money came in as foreign currency \u2014 which you’ll need for tax filing. In practice: share the right receiving details with your client, invoice with the correct currency and purpose of payment, let the payment arrive and convert, collect your FIRA, and reconcile it against your invoice. The six steps below walk through each part.<\/span><\/p>\n


<\/span><\/p>\n

Key takeaways<\/b><\/p>\n

    \n
  • You don’t need to do anything unusual to receive foreign payments legally<\/b> \u2014 for freelancers and businesses, it’s simply an export of services, and FEMA (the law governing foreign exchange) permits and expects this.<\/span><\/li>\n
  • The channel you choose determines your cost far more than any “processing fee” line item does.<\/b> The real cost is the gap between the mid-market exchange rate and what you’re actually given.<\/span><\/li>\n
  • \n

    Always ask for a FIRA, not just a bank credit.<\/b> Without it, you can’t prove the money was foreign income when GST or income-tax time comes.<\/span><\/p>\n<\/li>\n

  • Your GST rate on export income can legally be zero<\/b> \u2014 with a Letter of Undertaking (LUT) \u2014 but only if the money arrives as proper foreign exchange with FIRA proof.<\/span><\/li>\n
  • \n

    This is general information, not tax advice.<\/b> Confirm your specific thresholds and filings with a qualified CA.


    <\/span><\/p><\/li>\n<\/ul>\n

    <\/p>\n

    <\/p>\n

    Step 1: Choose your receiving channel<\/b><\/h2>\n

    Before your client can pay you, you need somewhere for the money to land. Broadly, you’re choosing between:<\/span><\/p>\n

      \n
    • A direct bank account (SWIFT\/wire).<\/b> Works with any bank worldwide, no setup needed beyond your existing account, but usually carries the largest FX markup and sometimes an unexpected “intermediary bank” deduction.<\/span><\/li>\n
    • \n

       <\/span>A wallet\/gateway (PayPal, Stripe).<\/b> Fast and familiar to clients, but among the costliest for you once fees and conversion markup are counted.<\/span><\/p>\n<\/li>\n

    • \n

      A multi-currency account (Wise, Payoneer). <\/b> Gives you local receiving details in the client’s currency and converts closer to the real rate.<\/span><\/p>\n<\/li>\n

    • \n

      A collection account built for exporters (Remit Circle, and similar India-first platforms).<\/b> Purpose-built for this exact flow \u2014 local receiving details, a rate close to mid-market, and FIRA generated automatically per payment.<\/span><\/p>\n<\/li>\n<\/ul>\n

      There’s no single right answer \u2014 a one-off large payment might suit a direct wire; a client who only uses PayPal means you use PayPal for that invoice. But for <\/span>regular<\/b> invoices, the channel you pick compounds: a 3\u20134% gap on every payment adds up fast across a year.<\/span><\/p>\n

       <\/span><\/p>\n

      <\/p>\n

      Step 2: Share the correct receiving details<\/b><\/h2>\n

      Once you’ve picked a channel, give your client precisely what they need to route the payment correctly:<\/span><\/p>\n

        \n
      •  <\/span>Your <\/span>account details<\/b> (SWIFT\/BIC and account number for a wire; or the local receiving details your platform provides).<\/span><\/li>\n<\/ul>\n
          \n
        •  <\/span>The <\/span>currency<\/b> you want paid in \u2014 usually your client’s local currency or USD.<\/span><\/li>\n
        • \n

          The <\/span>purpose of payment<\/b>, so the sending bank routes and codes it correctly. India uses RBI purpose codes for this \u2014 for IT\/software services, common illustrative examples are <\/span>P0802<\/b> (software consultancy) and <\/span>P0807<\/b> (other IT services). Your bank or platform will confirm the right code if you’re unsure.<\/span><\/p>\n<\/li>\n<\/ul>\n

          Getting this step wrong is the single most common cause of a payment being delayed, part-returned, or landing without the documentation you need later.<\/span><\/p>\n

           <\/span><\/p>\n

          <\/p>\n

          Step 3: Let the payment arrive and convert<\/b><\/h2>\n

          Once your client pays, the money moves through the banking system (or your platform’s rails) and gets converted from their currency to INR. This is where most of the “leakage” happens, and it’s worth understanding exactly what to check:<\/span><\/p>\n

            \n
          • The mid-market rate<\/b> is the real, no-markup exchange rate \u2014 the one Google shows you.<\/span><\/li>\n
          • The FX markup<\/b> is the gap between that rate and what you’re actually given. A “0% fee” service that quietly marks up the rate by 4% has still taken 4% from you.<\/span><\/li>\n
          • Fixed and percentage fees<\/b> are on top of that. Compare providers on the <\/span>final INR that lands<\/b> for a given amount, not the advertised headline fee \u2014 that’s the only number that’s actually comparable.<\/span><\/li>\n<\/ul>\n

            If your channel supports it, you can sometimes hold the payment in foreign currency for a short period (via an <\/span>EEFC account<\/b>) before converting, if you want to time the conversion rather than take whatever rate is live that day.<\/span><\/p>\n

             <\/span><\/p>\n

            Step 4: Collect your FIRA<\/b><\/h2>\n

            A <\/span>FIRA<\/b> (Foreign Inward Remittance Advice, the modern electronic form of what used to be a physical FIRC) is the document that proves this money arrived as foreign currency through a legitimate banking channel. You’ll need it for:<\/span><\/p>\n

              \n
            • Income tax filing, as proof of foreign income.<\/span><\/li>\n
            • \n

              GST export-refund claims, if you’ve paid IGST and want it back.<\/span><\/p>\n<\/li>\n

            • \n

              FEMA compliance, if your foreign receipts are ever reviewed.<\/span><\/p>\n<\/li>\n

            • \n

              Occasionally, visa or loan applications.<\/span><\/p>\n<\/li>\n<\/ul>\n

              Handling differs by channel: purpose-built collection accounts and PayPal typically generate it automatically per transaction (or monthly, for PayPal); a direct bank wire usually means requesting it from your bank, which can take a few days and sometimes a small fee (roughly \u20b9100\u2013\u20b91,000 depending on the bank, with the electronic version often cheaper). Peer-to-peer transfer apps (built for personal remittances, not exports) often <\/span>don’t<\/b> issue a FIRA at all \u2014 a good reason to keep those apps for personal transfers only, not client income.<\/span><\/p>\n

               <\/span><\/p>\n

              Step 5: Reconcile against your invoice<\/b><\/h2>\n

              Match the amount that landed to the invoice you sent \u2014 noting the exchange rate used, the fees deducted, and the purpose code applied. Keep the FIRA filed alongside the invoice. This is tedious to do manually and exactly what a good platform automates; either way, it’s the record your CA will ask for at filing time.<\/span><\/p>\n

               <\/span><\/p>\n

              Step 6: Handle the tax side correctly<\/b><\/h2>\n

              This is the step people either skip or over-worry about \u2014 neither is right. A few things to know, precisely:<\/span><\/p>\n

                \n
              • Your foreign service income is an export<\/span>, and exports are zero-rated under  GST \u2014 if you’ve filed a Letter of Undertaking (LUT).<\/span> Without an LUT, you may need to pay IGST upfront and claim it back later. The tax isn’t being avoided here \u2014 the export is genuinely, legally zero-rated; the FIRA is your proof.<\/li>\n
              • The zero-rating depends on the money actually arriving as convertible foreign exchange with valid FIRA proof<\/b> \u2014 without that, the same payment could be treated as a domestic supply instead of an export.<\/span><\/li>\n
              • If you pay for foreign SaaS tools<\/b> (Zoom, Canva, AWS, and similar), that’s technically an <\/span>import<\/span><\/i> of services, which can trigger GST under the <\/span>Reverse Charge Mechanism (RCM)<\/b> \u2014 regardless of your turnover. It’s a commonly missed detail.<\/span><\/li>\n
              • The GST registration threshold has conditions<\/b>, not a blanket “under \u20b920L, never register” rule \u2014 RCM above is one exception. Confirm where you personally stand.<\/span><\/li>\n
              • Presumptive taxation (Section 44ADA)<\/b> can simplify filing for eligible professionals, letting you declare a portion of receipts as taxable income, up to a ceiling \u2014 verify the current figure for your situation.<\/span><\/li>\n
              •  <\/span>If you hold a foreign account or balance<\/b>, note that <\/span>Schedule FA<\/b> reporting runs on the <\/span>calendar year<\/b> (Jan\u2013Dec), not India’s usual financial year \u2014 a mismatch that has caught out people who assumed the two matched.<\/span><\/li>\n<\/ul>\n

                Disclaimer: <\/i><\/b>This is general information, not tax, legal, or financial advice. Rules and thresholds change and depend on your specific circumstances. Confirm your position with a qualified Chartered Accountant before filing or relying on any figure here.<\/span><\/i><\/p>\n

                 <\/span><\/i><\/p>\n

                Common mistakes to avoid<\/b><\/h2>\n
                  \n
                • Comparing “fees” instead of the final amount received.<\/b> A provider with no visible fee can still cost more once the FX markup is counted.<\/span><\/li>\n
                • Using a personal remittance app for business income.<\/b> Convenient, but usually no FIRA \u2014 which becomes a problem the moment you need to prove the income was foreign.<\/span><\/li>\n
                • \n

                  Skipping the LUT and assuming GST is automatically zero.<\/b> It’s conditional on filing the LUT and having valid proof of export.<\/span><\/p>\n<\/li>\n

                • \n

                  Forgetting the RCM trap on foreign software subscriptions<\/b>, which can trigger GST registration even under the usual threshold.<\/span><\/p>\n<\/li>\n

                • \n

                  Treating the FIRA as optional paperwork.<\/b> It’s the one document that ties everything else together at filing time \u2014 collect it every time, not just when your CA asks.<\/span><\/p>\n

                  <\/p>\n<\/li>\n<\/ul>\n

                  A note for each of the top 10 countries<\/b><\/h2>\n

                  The six steps above are identical wherever your client is based \u2014 but here’s the currency and practical detail to keep in mind for each of India’s top 10 trading partners <\/span>(ranked by goods-export value, FY2024-25 \u2014 a reasonable proxy for where most Indian exporters’ clients are concentrated)<\/span><\/i>:<\/span><\/p>\n

                  <\/p>\n

                  \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
                  Country<\/b><\/th>\nCurrency<\/b><\/th>\nPractical note<\/b><\/th>\n<\/tr>\n<\/thead>\n
                  United States<\/span><\/td>\n  USD<\/span><\/td>\nBy far the largest corridor. Set up USD receiving details first if you only configure one currency \u2014 most clients will pay in USD regardless of platform.<\/span><\/td>\n<\/tr>\n
                  United Arab Emirates<\/span><\/td>\nAED \/ USD<\/span><\/td>\nMany Gulf-based clients pay in USD even when based in the UAE; confirm which currency your invoice should specify.<\/span><\/td>\n<\/tr>\n
                  Netherlands<\/span><\/td>\nEUR<\/span><\/td>\nA major European gateway \u2014 EUR receiving details (SEPA-linked, where supported) keep costs down vs. routing through USD.<\/span><\/td>\n<\/tr>\n
                  United Kingdom<\/span><\/td>\nGBP<\/span><\/td>\n\n

                  Common for consulting, design and marketing clients. Avoid letting a UK client’s bank convert to INR at their end.<\/span><\/p>\n<\/td>\n<\/tr>\n

                  China<\/span><\/td>\n\n

                  CNY \/ USD<\/span><\/p>\n<\/td>\n

                  		Typically invoiced and paid in USD for services; confirm your channel supports the corridor.<\/span><\/td>\n<\/tr>\n
                  Singapore<\/span><\/td>\nSGD \/ USD<\/span><\/td>\n\n

                  A major hub for tech and services clients; both SGD and USD are usually well supported.<\/span><\/p>\n<\/td>\n<\/tr>\n

                  Saudi Arabia<\/span><\/td>\n\n

                  SAR \/ USD<\/span><\/p>\n<\/td>\n

                  		\n

                  Business payments usually route in USD; standard FIRA and export-documentation rules apply.<\/span><\/p>\n<\/td>\n<\/tr>\n

                  Bangladesh<\/span><\/td>\n\n

                  BDT \/ USD<\/span><\/p>\n<\/td>\n

                  		\n

                  A growing services corridor; USD invoicing is the practical default given limited direct BDT support.<\/span><\/p>\n<\/td>\n<\/tr>\n

                  Germany<\/span><\/td>\nEUR<\/span><\/td>\nAlong with the Netherlands, one of the largest EU corridors for services exports \u2014 same EUR-receiving logic applies.<\/span><\/td>\n<\/tr>\n
                  Hong Kong<\/span><\/td>\n\n

                  HKD \/ USD<\/span><\/p>\n<\/td>\n

                  		\n

                  Often used as a regional invoicing base even for clients elsewhere in Asia; confirm which currency actually applies.<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n

                  <\/p>\n

                  Whichever of these ten a client sits in, the underlying job is the same: get the receiving details right (Step 2), get the real exchange rate rather than a marked-up one (Step 3), and collect the FIRA (Step 4) \u2014 the country just decides the currency you’re doing it in.<\/span><\/p>\n

                   <\/span><\/p>\n

                  Where Remit Circle fits<\/b><\/h2>\n

                  The steps above are the same regardless of tool \u2014 but how much friction each one takes depends entirely on the channel you picked in Step 1. A collection account built specifically for this flow (which is what Remit Circle is) gives you local receiving details so clients pay like a local, converts near the mid-market rate instead of a marked-up one, and generates the FIRA automatically per payment \u2014 so Steps 3, 4 and 5 mostly take care of themselves. Worth comparing against whatever you’re currently using, on a real invoice.<\/span><\/p>\n

                   <\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

                  \n
                  \n
                  \n
                  \n \t\t\t

                  Frequently Asked Questions<\/strong>
                  <\/h2>\n\t\t\t\t
                  \n\t\t\t\t\t\t\t
                  \n\t\t\t\t\t\t
                  \n\t\t\t\t\n\t\t\t\t\t
                  Q: Is it legal to receive money from a client abroad into my Indian bank account? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/path><\/svg><\/span>\n\t\t\t<\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t
                  \n\t\t\t\t\t

                  Yes. Providing services to an overseas client and being paid for it is an export of services, which FEMA permits through authorised banking channels, generally with repatriation expected within a set window (commonly around 9 months for services \u2014 confirm the current rule for your case).<\/p>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t

                  \n\t\t\t\t\n\t\t\t\t\t
                  Q: Do I need to register a company to receive international payments? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/path><\/svg><\/span>\n\t\t\t<\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t
                  \n\t\t\t\t\t

                  No \u2014 freelancers and sole proprietors can receive international payments in a personal or proprietorship bank account. GST registration becomes relevant separately, based on turnover and the RCM conditions noted above.<\/p>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t

                  \n\t\t\t\t\n\t\t\t\t\t
                  Q: What's a FIRA and why does it matter so much? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/path><\/svg><\/span>\n\t\t\t<\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t
                  \n\t\t\t\t\t

                  It's the document proving a payment you received was genuine foreign currency through a legitimate channel. Without it, you can't cleanly claim GST zero-rating on the export or prove foreign income during a tax review.<\/p>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t

                  \n\t\t\t\t\n\t\t\t\t\t
                  Q: How long does it take for foreign money to reach my account? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/path><\/svg><\/span>\n\t\t\t<\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t
                  \n\t\t\t\t\t
                  \n\t\t\t\t\t

                  A direct bank wire typically takes 2\u20135 working days. Modern collection accounts and services like Wise are often faster, around 1\u20132 working days. Wallet-based services like PayPal credit your wallet instantly, but the bank payout can still take 1\u20133 days.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t

                  \n\t\t\t\t\n\t\t\t\t\t
                  Q: Do I have to pay tax on money received from abroad? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/path><\/svg><\/span>\n\t\t\t<\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t
                  \n\t\t\t\t\t
                  \n\t\t\t\t\t

                  Yes, it's income and must be declared \u2014 but \"taxable\" doesn't mean \"GST applies at full rate.\" Export income can be zero-rated for GST with a valid LUT, and income tax has its own rules (including presumptive taxation options for eligible professionals). Confirm specifics with a CA.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t

                  \n\t\t\t\t\n\t\t\t\t\t
                  Q: What if my client wants to pay through an app that doesn't issue a FIRA? <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/path><\/svg><\/span>\n\t\t\t<\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t
                  \n\t\t\t\t\t
                  \n\t\t\t\t\t

                  For business income, that's a real problem down the line \u2014 you'd have no clean proof of the receipt as foreign income. Where possible, redirect business payments to a channel that issues a FIRA, and keep no-FIRA apps for personal transfers only. Watching a chunk of every payment disappear into fees and a bad exchange rate? Compare your current receiving process against a mid-market-rate collection account with the FIRA generated automatically \u2014 on a real payment, so the comparison is honest.<\/em><\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\n<\/div>\n\n<\/div>\n\n<\/div>\n\n<\/div>\n\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"Your client abroad has agreed to pay you, or maybe they’ve already hit “send.” Now what? Which bank details do you give them, what currency should the invoice say, do you need to tell the tax department anything, and why does the amount that eventually lands never quite match what they sent?\nIf you’ve never done this before \u2014 or you have, and it still feels like guesswork \u2014 this is the process, laid out once, properly. It works the same way whether your client sits in the US, the UK, the UAE, or anywhere else: only the currency changes, not the steps.","protected":false},"author":260895651,"featured_media":1092,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_wpcom_ai_launchpad_first_post":false,"csco_display_header_overlay":false,"csco_singular_sidebar":"","csco_page_header_type":"","csco_page_load_nextpost":"","csco_page_reading_time":"","csco_page_toc_navigation":"","csco_post_video_location":[],"csco_post_video_location_hash":"","csco_post_video_url":"","csco_post_video_bg_start_time":0,"csco_post_video_bg_end_time":0,"csco_post_video_bg_volume":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1387],"tags":[],"class_list":["post-1743","post","type-post","status-publish","format-standard","has-post-thumbnail","category-education","cs-entry","cs-video-wrap"],"jetpack_publicize_connections":[],"jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/phhXOC-s7","jetpack-related-posts":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/blog.remitcircle.com\/wp-content\/uploads\/2026\/08\/P0102.jpg?fit=1200%2C800&ssl=1","_links":{"self":[{"href":"https:\/\/blog.remitcircle.com\/wp-json\/wp\/v2\/posts\/1743","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.remitcircle.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.remitcircle.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.remitcircle.com\/wp-json\/wp\/v2\/users\/260895651"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.remitcircle.com\/wp-json\/wp\/v2\/comments?post=1743"}],"version-history":[{"count":79,"href":"https:\/\/blog.remitcircle.com\/wp-json\/wp\/v2\/posts\/1743\/revisions"}],"predecessor-version":[{"id":1972,"href":"https:\/\/blog.remitcircle.com\/wp-json\/wp\/v2\/posts\/1743\/revisions\/1972"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.remitcircle.com\/wp-json\/wp\/v2\/media\/1092"}],"wp:attachment":[{"href":"https:\/\/blog.remitcircle.com\/wp-json\/wp\/v2\/media?parent=1743"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.remitcircle.com\/wp-json\/wp\/v2\/categories?post=1743"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.remitcircle.com\/wp-json\/wp\/v2\/tags?post=1743"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}