easylancing

Paid through PayPal? FIRA, purpose code and the EDF

PayPal pays your Indian bank in rupees and gives you a weekly digital FIRA. PayPal doesn't file the Export Declaration Form for you, and its one-purpose-code rule needs a moment's thought.

Last updated 09 Oct 2026 · Not legal or tax advice

The short version

  • PayPal is an existing cross-border payment aggregator with RBI's in-principle authorisation, not yet the final one.
  • PayPal requires a purpose code on your account before you can withdraw, and you get one code per account.
  • Since February 2026 PayPal offers a free weekly digital FIRA; a custom FIRA from Citibank costs ₹100 plus GST per transaction.
  • PayPal doesn't file the EDF. File it with your own bank, where the rupees land.

How PayPal money reaches you

From the providers' published pages and, where marked, user reports, checked 04 Oct 2026. Providers change their banking partners and rules; check before you rely on this.

Automatic transfer to your Indian bank

  • How it arrives: PayPal moves your balance to your Indian bank in rupees automatically, daily according to PayPal's help pages as quoted by users.
  • Proof of payment: PayPal's weekly digital FIRA, free from February 2026. For a FIRA per transaction, Citibank issues a custom FIRA for ₹100 plus 18% GST each (₹2,000 plus GST for a bulk request of more than 20), in 3 to 5 business days.
  • Citibank sends custom FIRAs to your bank's address, so your own bank handles the realisation.

Your Export Declaration Form

Exporters file the EDF with their AD bank within 30 days after the end of each month in which they invoiced a foreign client. Companies, LLPs and firms file. Individuals may not need to: on 7 October 2026 RBI said individuals don't have to report transactions of a personal nature, and its FAQ isn't out yet, so ask your bank (who files). See the full EDF guide or work out your due date.

  • List each invoice to your clients in Part 2B, at the full invoiced amount.
  • PayPal hasn't published guidance on the EDF. File with your own bank, where the rupees land, and give it the weekly FIRAs.
  • If a marketplace pays you through PayPal (rather than your client), name the marketplace in the third-party payer fields.
  • Keep each FIRA with the invoices it covers; one weekly FIRA can cover several payments.

Fees

PayPal deducts its fees and conversion margin before the rupees reach you, so less arrives than you invoiced. Declare the full invoice amount and record the difference as a fee.

Watch out for

  • One purpose code per account: if you do different kinds of work (say software and design), pick the code for your main service and tell your bank if a payment was for something else.
  • A personal purpose code on client payments weakens your export evidence.

Questions

Does PayPal give a FIRA in India?

Yes. Since February 2026 PayPal offers a free weekly digital FIRA. If you need one per transaction, Citibank issues a custom FIRA for ₹100 plus GST each, sent to your bank.

Which purpose code should I set in PayPal?

The code for your service, for example P0802 for software consultancy. PayPal asks for it before your first withdrawal and allows one code per account.

Does PayPal file the EDF for me?

No. If you need to file the Export Declaration Form, you file it with your AD bank (individuals: RBI has said they may not need to; ask your bank). PayPal hasn't published EDF guidance; file with the bank where PayPal's rupees land.

Do it in easylancing

Upload each PayPal statement, FIRA or e-FIRC and easylancing reads the amounts, suggests the invoice it pays and fills in any fee for you to record on the invoice. At the end of the month it prepares the EDF, with the platform as third-party payer if you entered it on the invoice. Or try the free EDF generator and the purpose code list.

Other platforms

Sources