When to use S1307
Use S1307 for money paid abroad: migrant transfers including personal effects. 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 P1307: Migrant transfers including personal effects (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
Not a payment for goods or a service: whether tax is withheld depends on what the payment is (a return of capital, a loan, a claim or income). Your CA decides.
A return of capital is not income, but any gain, interest or dividend inside it is.
Form 145 / 146: Part D where nothing is chargeable; Part A or C (with Form 146) where tax is due.
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
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.
