Receivingmoney from an overseas propreitarty firm directly in INR as a contractor

Hi respected chartered accountants

I am looking to join an overseas forex propreitary trading firm who will
> hire me as a contractor legally
> allow me access to a SIMULATED currency data source feed
> take trades on their overseas capital themselves
> pay me monthly profit commissions

They can deposit the amount directly in INR to my bank account.

However, I am concerned with my bank may freeze the account until they confirm my source of income. I wont be depositing any INR capital overseas for trading but paying them a fee for access to their software which is clearly writen in the employment term.

Do I have to hire a Chartered accountant help me create documents tp ensure I can deposit my income beforehand?

Or should I wait and hire a chartered accountant only if the bank asks me for documents ?

Sorry for the stupid question but I have recently opened a bank account and dont want it removed.I would rather be laughed at a forum of experts than negotiate in a court with my ignorance.

Hey Pras,

Not a stupid question at all — these cross-border payment scenarios can get tricky, especially with forex and compliance concerns!

Here’s a quick rundown:

1. Receiving Overseas Payments in INR:

If your overseas proprietary trading firm pays you directly in INR (meaning, the payment comes from abroad but credited in your Indian bank account in Indian Rupees), banks will treat it as a foreign inward remittance.

2. Bank Compliance & Source of Funds:

Banks are mandated to follow KYC (Know Your Customer) and AML (Anti-Money Laundering) guidelines. So yes, they might ask you for documents clarifying the source and nature of income.
This is especially relevant because forex and trading-related payments can sometimes attract scrutiny.

3. Documents You Might Need:

Contract/Agreement with the proprietary firm stating your role as a contractor and payment terms.
Invoice/Payment advice showing commission/profit payout details.
PAN Card & KYC documents (already required).
Possibly a declaration about the nature of the income.

4. Do You Need a CA Beforehand?

You can consult a CA beforehand to help draft or review contracts, invoices, and compliance documents, but it’s not mandatory.
Many freelancers wait until banks ask for proof and then provide it.
Having a CA help prepare a tax compliance and documentation pack in advance might save you future hassle.

5. Taxation Aspect:

Your income will be taxable in India as income from business/profession or contractual income.
A CA can help you with timely filing of returns and tax planning.

Summary:

It’s a good idea to keep your contract and invoice documents neat and clear.
If you want peace of mind, a quick chat with a CA upfront helps but is optional.
Keep all your banking and payment communication handy.
Banks may ask questions, and you should be ready to explain the income source clearly.