PayPal India and taxes

I have been making $10k/month since the last few months and I am really confused on what to do on 31st March

30% is a lot ya know!
Comes out to roughly 16 lack Rupees

I think I'll take my Chances this year.....

 

I think the exemption is for providing IT services....in your case it will be as freelancer and not as a company/firm.

In any case if you want to avoid declaring the amount as income you can show petty cash expenses like travel, stationary etc or payout to subcontractors, internet, phone, courier, postage, rent etc, etc. Where invoices are not available make cash vouchers for small amounts. So in effect you are a proprietary firm declaring profits after expenses.

 

I would prefer to declare a net loss

 

30%. Oh man! That's too high!

 

I am pretty sure you are in the clear.

Paypal is a really good payment processor.

You can always get a merchant account.

 

@nowimhere: I am clear now.. No problems now!

 

Really funny..

We stay in a country, enjoy are freedom, earn money but when the time comes to give back something we run away.

I wish people change their attitude towards the nation.

 

I don't know why people speak too much when they know little. Don't listen to all those who are saying no need to pay taxes. They either don't earn much and pretend to earn lacks of money without paying taxes or are just waiting for them to be landed up in jail.

Remember:

1. You have to get a PAN. This can be done easily by going to NSDL site. Without PAN you cannot file returns.

2. The PayPal income is taxable as per IT brackets. You need to fill out ITR-4.

3. Even if you earn less than Rs. 1,60,000 (for men) you have to file returns (though you may not have to pay anything). Please remember Foreign Exchange earnings are easily traceable by government. If you do not pay you will be in a soup and may land up in trouble with authorities other than tax guys e.g. police because of terrorist funding issues from abroad.

4. Registration with FEMA is not necessary provided your total services export value (read - earnings) is less than USD 25,000 a year. The source for this is Notification No. FEMA 23/2000-RB dated 3rd May 2000 - Regulation 4. So if anyone tries to scare you saying that you have to register with FEMA for exporting services and dealing in Foreign currency, you can rattle of this regulation number in their face.

Now for all of you who are little confused should read this paper
(http://www.scribd.com/doc/11445538/Laws-Guide-for-freelancers-in-India) written by Ranjith Xavier Attokaran, Advocate, Kerala High Court. After reading it, all doubts should clear and you'll be able to understand all the provisions.

 

30% isn't actually that high. Looks to be quite decent when you look at this- http://en.wikipedia.org/wiki/Tax_rates_around_the_world

Some poor folks around the world have to pay 50% or even higher.

 

This mean we have to pay tax.

P.S i dont have PAN... do i still need to pay TAX>

T_D

 

@kevinbanet Who's earning in Foreign Exchange? PayPal Converts your earnings into INR before it sends it to your bank.

 

I would never call my money black money. Its hard earned, not earned by illegal means.

When I do legal, I expect n ensure it (my money) stay legal forever. I can even getup from my dreams and give an IT inspector information of any records asked.

- That's the way a person must be - Completely Clear & White Collar!

I am proud of myself - I really wonder how many are ??

 

I was not good at management and used to forget bills and all stuff in early days.

Now it has became a habit.

Just collect the yearly bank statement, your yearly dump of bills.

Give it to your accountant.

 

I see that Indian individuals need to pay just 10-20% tax upto 5 lac!

http://en.wikipedia.org/wiki/Income_tax_in_India#Tax_Rates

 

And what about when those ministers use our hard earned money for their "Aish" "Maza" Masti in five stars Hotels, Lavish Cars? Business Class Traveling Air Fares?
According to me we should pay Taxes, but 20% is way too much, they should reduce the percentage for sure.

 

Yo baby!

Why not yourself start, contribute and make a healthy vote? One can also enter politics if you aren't satisfied with the system.

Anyways, if everyone starts thinking why pay tax? We will not longer have express highways, better airports, trains, travel facilities, bridges, electricity, water, food and lots more.

Do you duty and leave others behind.

Trust me its a amazing feeling when you are 100% clear with tax and can confidently makes cheque payments & receive, withdraw & deposit cash.

Many will not probably understand me now, but when you buy a house in your name, buy a car, take a loan, you will have a different feeling if you are 100% clear.

 

PayPal is a registered company in India as Paypal India Pvt Ltd. with address as Paypal India Pvt Ltd., No 334 Futura IT Park Block A, Old Mahabalipuram Road, Sholinganallur, Chennai – 600119

This company is registered as the one which deals in Foreign Currency Exchange and the money transfers are done to the intended recipients through NEFT. Remember, NEFT transfer is always first sent to RBI for the approval and then is processed further. So whatever you are earning in your bank account is already under the scanner of Govt. (Read Income Tax Department)

So better pay your taxes and stay safe. I too earns around $1800 - $2500 per month, but the tax usually comes out to be Rs. 6500 as I show lots of expenses in my return.

 

@kevinbanet: That's a good answer!!

 

No answer for me

T_D