I withdraw funds through local funds transfer to my standard chartered bank account. In bank statement those funds show as ATM transfer. Now for filing Tax Return and availing tax exemption on software export, I want to show that these funds came through foreign remittance.
Upwork provides certificate of earning document but there's no way to select custom date. July-14 to June-15. It generates this certificate from 12 previous months starting from current date.
Can anyone help me through this?
I think there are 1 possible options. Provide Upwork Earning Certificate and your profile page print (on profile page there are full details of earning by a project and so on..) to your bank with your profile URL so that they can verify your earning. You can discuss with your bank advisor by telling them upwork limitation.
Based on my experience and having gone through hell with the process myself, here are the steps that I'd like to share to help all my fellow freelancers in India:
Upwork processes the payments through Wells Fargo, the funds are then routed through Standard Chartered in India and reach your bank account.
a. Go to the bank in which your Upwork earnings are credited in INR. The system is centalized, so it doesn't have to be your home branch.
b. Make a note of each and every Upwork credit you would like an FIRC for as the bank issues one consolidated FIRC for all the entries. To know the same, go to Reports<Transaction History<Choose Withdrawls in the dropdown under All Transactions for "All clients" and also choose the time and date range of your choice.
This is how you can determine the credits:
c. Your line item will read: (1 single line) I'm breaking it down to help you.
Description: Direct to Local Bank Transfer for XYZ INR to bank account number
d. Take these entires and go to the bank. The bank will have to as Standard Chartered to issue an NOC (No Objection Certificate). The format will have the date, transaction amount in INR, name of the remitter and the purpose code. Please visit this link: https://www.rbi.org.in/upload/notification/pdfs/52220.pdf
e. Once the bank receives the NOC, they can send you the FIRCs.
Hope this helps.
Thanks Soumya N for consolidating all your findings in the post. It has been real helpful. I appreicate your efforts and time that you have put into this issue.
I had few queries if you could answer.
1> We need to take the entries and ask "Our Local Bank" to ask Standard Chartered to issue the NOC right ?? Do you have any format or govt. notifications, which I can quote while asking my Local Bank.
2> Who is going to send the FIRC, the Local Bank or Standard Chartered ?
3>Your quote "The format will have the date, transaction amount in INR, name of the remitter and the purpose code. Please visit this link: https://www.rbi.org.in/upload/notification/pdfs/52220.pdf"
Can you explain the point of including this link, I dont get it.
Could you please confirm if you have received FIRC from your bank with the above process after using LFT option in Upwork.
1. May I ask which is your local bank? (HDFC/ICICI/Axis/..)
2. Did your local bank identify that the funds were routed through Standard chartered or you just asked your bank to request for NOC to Standard chartered in India.