RBI purpose code · Money received (inward)

P0029: Capital transfer receipts (guarantees, investment grants, large claims) – non-Government

Short answer. P0029 is the RBI purpose code for money received from abroad: capital transfer receipts (guarantees, investment grants, large claims) – non-Government. It is reported to RBI under the code but settles no invoice or customs document.

Direction
Money received (inward)
RBI head
00 · Investment, loans and other capital
Bank application
None: the bank issues a FIRA
Income tax
Depends on what it is
GST
Usually outside GST
Reporting
Capital account
In FxLayer
Recorded and reported only: it links to no invoice or customs document, and never shows as unallocated.

When to use P0029

Use P0029 for money received from abroad: capital transfer receipts (guarantees, investment grants, large claims) – non-Government. It sits under RBI head 00, investment, loans and other capital.

A recorded-only code: never use it for payment for goods or services, which misstates your income.

Form A1 or Form A2

Neither. Form A1 and Form A2 are applications to send money out of India. For money coming in, the bank issues a Foreign Inward Remittance Advice (FIRA), or a payment platform an e-FIRA, naming the purpose code.

Income tax

A capital receipt (an investment, a loan, or its repayment) is not income in itself; interest, dividends or gains connected with it are taxed on their own.

GST

Capital, loans, gifts, claims, salaries and dividends are not supplies of goods or services, and interest on loans and deposits is exempt. Ask your CA where a fee is bundled with the transfer.

Reporting and closure

A capital account transaction. It follows FEMA's capital account rules: the Overseas Investment Rules and Regulations, 2022 for Indian investment abroad, the Non-debt Instruments Rules, 2019 for foreign investment into India, and the external commercial borrowing and trade credit framework for loans, each with its own filing (for example Form ODI, FC-GPR or ECB-2).

Questions

Neither. Form A1 and Form A2 are applications to send money out of India. For money coming in, the bank issues a Foreign Inward Remittance Advice (FIRA), or a payment platform an e-FIRA, naming the purpose code.
A capital receipt (an investment, a loan, or its repayment) is not income in itself; interest, dividends or gains connected with it are taxed on their own.
Capital, loans, gifts, claims, salaries and dividends are not supplies of goods or services, and interest on loans and deposits is exempt. Ask your CA where a fee is bundled with the transfer.

Guides

General information on RBI purpose codes and the FEMA, income-tax and GST rules as they stood on 14 October 2026. It is not legal or tax advice: confirm the position for your payment with your AD bank or your chartered accountant before acting.