well, I don't have much idea about Paypal withdrawals, but sometimes banks do try to find out the source of funds. Once, I had deposited a dollar check with "Bank of India" and they had asked me to explain what the cheque was for.
We are not talking about bank asking issue but we are talking about tax liability on income through paypal,moneybookers etc. (online web income). DON.
banks do inquiries on behalf of tax department. why do you think banks ask for PAN details at various stages? a lot of information is passed on to the tax department.
This is not true regarding freelance income,however i do agree with you on point of questioning by bank for related proof,infact i was contacted by bank (some 15 months back) when i received a wire payment payment of $24k from affiliate network,but since i had all my tax papers and related stuff completed,nothing happened and never been asked for tax after that day. Infact i know other 2 Indian guys getting more than 40 lakhs/month into their banks and not worrying about tax,its simple,they all claim this payment as freelance even though its a affiliate payment. Just to let you know,you only have to pay tax if you claim your income as salary or if you have registered office in India performing online tasks and accepting online payments,like SEO companies.
how does that make their income non-taxable? freelancing is nothing but self-employment and such income is taxable.
We have to pay tax on this type of income as far as my knowledge. I think better to contact any IT Officer regarding same to clear my all doubts DON.
HAHA.... Btw मोड़ is himself fighting in the thread.. j/k...!! No one is fighting here, its a healthy and useful discussion, afterall we are will benefit sharing useful information.
Withdraw the total amount by 10 attempt at 1K each time. Below Rs 50000 deposit require no verification.. Anyway..........how you earn that money?
Members... we are here not to discuss about how much he /she is earning...( some useless post out here ) Members are discussing about the paypal taxable . Nobody is fighting here... everyone is having there own question. which should be discussed and solved. As for me. i have a little concern Because i am getting 20,000 inr per month through net ... which is good enough for me.... I dont work , i am a college guy . and i dont have pan. I have bank open in HDFC. So... do i put as myself as freelance... or even i DO have to pay TAX. I hope experience member could enlighten me. T_D
As far as i know there is no harm for you to filing a return every year. You don't have to pay tax for 1,60,000 INR + 1,00,000 (excemption under IT section for investment in PPF,NSC,LIC,MF etc.). Just contact your CA about this and he'll guide you further for this. @checkblog - Nope thats not true. Bank cut TDS if you are earning more then 10,000 INR / year as an interest. DON.