Foreign Currency Income Deposit In Specific Accounts Does Not Earn Interest

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    It may well be the case that you work for some foreign company and they pay you in some foreign currency. For the deposit of your fees in different currency, first of all you need to open either of the account that allows deposit of the currency in which the payment is being made to you. Some of the accounts that allow remittance in foreign currency are Resident Foreign Currency (Domestic) Account or Exchange Earners Foreign Currency Account (EEFC account).

    Foreign Currency Income Deposit In Specific Accounts Does Not Earn Interest

    These accounts operate as current accounts and do not offer interest on it. The only advantage with such an account is that foreign payments towards specified cases are allowed for free without commission charges. So, if you, need to do make such payments then you can maintain your earned income in such accounts. Else ask the company to make the payments in domestic currency and deposit them in your savings account in India.

    Also, unless specified by the law, the company paying you for your services in foreign currency is not mandated to deduct TDS.

    The newly implemented GST rules also are zero rated for services provided to a foreign country as the place of service considered is the recipient's place. So no GST implications arise on providing services to a foreign land unless specified in IGST laws.

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