RBI purpose code · Money paid abroad (outward)

S1304: Grants and donations to other governments and government charities

Short answer. S1304 is the RBI purpose code for money paid abroad: grants and donations to other governments and government charities. It is reported to RBI under the code but settles no invoice or customs document. It goes on Form A2, with no Form 145 or 146 (specified list).

Direction
Money paid abroad (outward)
RBI head
13 · Family, gifts, donations and taxes
Bank application
Form A2
Form 145 / 146
Not needed: on the specified list.
Income tax
Specified list
GST
Usually outside GST
Reporting
LRS / personal
In FxLayer
Recorded and reported only: it links to no invoice or customs document, and never shows as unallocated.

When to use S1304

Use S1304 for money paid abroad: grants and donations to other governments and government charities. It sits under RBI head 13, family, gifts, donations and taxes.

A recorded-only code: it is not for paying for goods or services, which have codes of their own.

The same purpose in the other direction is P1304: Grants and donations to governments and government charities (money received).

Form A1 or Form A2

Form A2: the application for every payment abroad other than for goods imported into India. The bank may ask for the documents behind the payment and, unless the code is on the specified list, for Form 145.

Income tax

S1304 is on the specified list in Rule 220(3) of the Income-tax Rules, 2026: neither Form 145 nor Form 146 is needed, and no tax is withheld.

Form 145 / 146: Not needed: on the specified list.

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

An individual sends these under the Liberalised Remittance Scheme, within its yearly limit, and the bank may collect tax at source on LRS remittances above the threshold.

Questions

Form A2: the application for every payment abroad other than for goods imported into India. The bank may ask for the documents behind the payment and, unless the code is on the specified list, for Form 145.
S1304 is on the specified list in Rule 220(3) of the Income-tax Rules, 2026: neither Form 145 nor Form 146 is needed, and no tax is withheld. Form 145 / 146: Not needed: on the specified list.
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.