Is it acceptable to receive payment from U.S. in Indian saving bank account via PayPal?
It is fine to receive payments into Indian Savings Bank account. There are no restriction on deposits. There are only restrictions on number of withdrawls in a quarter.  A Current[a.k.a Checking] account makes it easier to manage. You haven't asked about tax, but I you may already know you would need to pay taxes irrespective of whether you got the money in Savings or Current account. Edit: Any individual can open a Current Account on individual's name. There is no restriction. There are multiple aspects to determine whether the activity you are doing is a service as defined by the Service Tax Rules. Please consult a CA to guide you. For less than 5K INR he would not only advice you but also do everything required to file taxes.
What you've described is the norm in Australia, where it's rare for anyone under sixty to use cheques. Assuming they're transferring the funds using internet banking, I would have the following suggestions: You make it clear that the the funds must reach your account by the due date for rent. It is their (the tenant's) responsibility to allow for the normal transfer delay from their account to yours. This will save unpleasant arguments later if the rent is late. If you're not comfortable with your tenant knowing your banking details, set up another account specifically for receiving rental income payments and paying your costs associated with the property. This may have the added benefit of simplifying things at tax time. Another alternative, which I think others have mentioned, is to use an escrow service like PayPal, but be aware that these kinds of services will usually charge a small percentage when you withdraw your funds. "Your friend probably cannot deposit the check to your U.S. bank account. U.S. banks that I've worked with will not accept a deposit from someone who is not an owner of the account. I don't know why not. If some stranger wants to make unauthorized deposits to my account, why should I object? But that's the common rule.  You could endorse the check, your friend could then deposit it to his own account or cash it, and then transfer the money to you in a variety of ways.  But I think it would be easier to just deposit the check in your account wherever it is you live. Most banks have no problem with depositing a foreign check. There may be a fairly long delay before you can get access to the money while the check clears through the system.  I don't know exactly what you mean by a ""prize check"", but assuming that this is taxable income, yes, I assume the U.S. government would want their hard-earned share of your money. These days you can pay U.S. taxes on-line if you have a credit card. If you have not already paid U.S. taxes for the year, you should make an ""estimated payment"". i.e. you can't wait until April 15 of the next year, you have to pay most or all of the taxes you will owe in the calendar year you earned it." this is to prevent fraud, and there is likely nothing (through paypal) that you can do to speed up the process apart from making sure you verify all the accounts linked to PayPal (bank, credit, etc) and that your relatives do the same. Be mindful that Paypal is NOT intended as a large sum transfer service - they are a convenience for online payments. Using an established monetary transfer system (wire, etc) for this purpose in the first place would have saved some time at the expense of a convenience fee. Tax implications, etc all apply, etc. "Paypal linked with my bank account. 1.Can I use my Saving bank account to receive payments from my clients? Or is it necessary to open a current account? Yes you can get funds into your savings account. However it is advisable to keep a seperate account as it would help with your IT Returns. 2.I will be paying a certain % as commission on every sales to a couple of sales guys (who are not my employees but only working on   commission). Can I show this as an expense in my IT returns? As you are earning as freelancer, you are eligible for certain deductions like Phone calls, Laptop, other hardware, payments to partners. It is important that you maintain a book of records. An accountant for a small fee of Rs 5 K should be able to help you. In the Returns you have to show Net income after all these deductions, there is no place to enter expenses.   3.Since I will be receiving all the payments in Euros so am I falling under a category of ""Exporter of services""? The work you are doing can be Free Lancing.    4.Do I need an Import Export Code (IEC) for smoothly running this small business? You can run this without one as Free lancing. IEC would be when you grow big and are looking for various benefits under tax and pay different taxes and are incorporated as a company." I'm pretty sure it's merchant-dependent.  If a credit card transaction doesn't go through, PayPal will automatically charge your bank account.  Some merchants may want that extra insurance. Give a cheque.  You can. Your friend would have to deposit this in a Bank that does this service. Not all Banks offer this service in US. It generally would take 1-3 months for the funds to reach.  Give a dollar-denominated cheque You can NOT write check on a Rupee account and put USD. You can definitely buy a USD Draft generally payable in the US. There would be some charge for you here and send it by courier, post. It would get paid into your friends account in about a week. Do a SWIFT transfer Yes you can. You may need to walk into a Branch and fill up forms. If the amount is more than specified limit a CA certificate is required. Am I correct in understanding Yes Use my ATM card in the US Yes you can.  Specialised money transfer services like Western Union Transfer money out of India is not allowed by Money Transfer services I am on employment based visa in USA and want to send dollars from USA to India from my savings (after paying Tax). How much maximum dollars I can send in a day? month? or in a year regularly? There is no such limit. You can transfer as money you like to yourself anywhere. To pay the Bank Loan-student Loan how much maximum dollars I can send in a day, in a month or in a year? to pay that I have to pay directly to that Bank Account or in any account I can send money? You can transfer to your NRE account in India and move it further. You can also send it directly to the Loan Account [Check with the Bank, they may not be able to receive funds from outside for a Loan Account] My mother is having Green Card. She is not working. She has a NRE account in India. Can I send dollars from my USA Bank account to her NRE account in India? what are the rules for that? any Tax or limit for that? Or I have to get any permission before sending it? If you are sending money to your mother, it would come under Gift Tax act in US. There is no issue in India. Suggest you transfer to your own NRE account. One of my friend is sending 100000 pounds to India, Although you haven't asked, this is a large amount of funds and depending on why it is, there could be taxes to you or lot of paperwork. He is asking for RIB and IBAN and I am not aware of it. India does not have IBAN. IBAN is mostly in Europe, Australia and New Zealand. You would need to give Bank Account Number and SWIFT BIC. The details can be found here. Best talk to your Branch to understand.