Income Tax advice required for a Contract offered by a US based company.

I have got an individual contract offered by a company based out of Chicago. I want to know how this model works.

1. Do I need to enable or inform my bank about the foreign payment coming in ?
2. Do I need to pay any income tax on this amount whole or if there is any slab after which I need to pay ?
3. How do I declare this amount in my ITR ?

Thank you.