EEFC Accounts for Exporters: Conversion, Realisation and Tax Treatment as at October 2026
This article explains the Exchange Earner's Foreign Currency (EEFC) account, the monthly rupee conversion requirement, the new export realisation and Export Declaration Form (EDF) regime, and the related income-tax, GST, accounting and Schedule FA points, as they stand at about 11 October 2026.
The position changed recently. The Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 are in force from 1 October 2026 as amended on 22 September 2026, and the RBI Master Direction on Deposits and Accounts was updated on 2 September 2026. Treasury, tax and audit teams of exporters need to align their records to both.
Issue 1: the account and what may go through it
An EEFC account is held with an authorised dealer (AD) bank in India by a person resident in India, under Schedule I of the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) Regulations, 2015 (FEMA 10(R)/2015-RB), read with the RBI Master Direction (RBI/FED/2015-16/9). It is a different instrument from an NRE account, an FCNR(B) deposit, an overseas account or an offshore margin account.
Credits
Eligible credits include:
- 100% of foreign-exchange earnings received through normal banking channels, other than loans or investments;
- counter-trade receipts and advances received by an exporter;
- professional earnings such as consultancy fees and honoraria;
- eligible interest;
- re-credit of unutilised foreign currency that was earlier withdrawn;
- repayments of permitted trade-related advances;
- certain start-up and export receipts.
Foreign loans and capital investment inflows cannot be credited. Eligibility is tested on the receipt and must be supported by documents.
Debits
Permitted debits include payments outside India for permitted current or capital account transactions, certain purchases from export-oriented units or technology-park units, customs duty where permitted, trade-related loans or advances to overseas importers under FEMA conditions, foreign-currency payments to a resident for specified goods or services, and withdrawals in rupees.