RBI purpose code · Money received (inward)

P1403: Interest on loans extended to non-residents

Short answer. P1403 is the RBI purpose code for money received from abroad: interest on loans extended to non-residents. It is reported to RBI under the code but settles no invoice or customs document.

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

When to use P1403

Use P1403 for money received from abroad: interest on loans extended to non-residents. It sits under RBI head 14, salary, interest, dividends and profit.

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

The same purpose in the other direction is S1403: Interest on loans from non-residents (trade credit / buyer's credit) (money paid abroad).

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

Salary, interest, dividends and profits received from abroad are income, taxed in your return. Tax withheld abroad can usually be credited under the tax treaty.

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

The bank reports it to RBI under its code, but it settles no invoice or customs document.

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.
Salary, interest, dividends and profits received from abroad are income, taxed in your return. Tax withheld abroad can usually be credited under the tax treaty.
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.