You don't have a PAN?? ... asap apply for it. Consult a CA... Some banks threaten to freeze your accounts if the transactions are misleading and don't have PAN information included.
Keep your documents ready ....you never know when the IT guy is going to knock your doors Thanks for your information,which clear up many things....
Guys.... Confirm me... You pay TAX only when your income is above 1.5 lakhs... RIGHT if your income is below 1.5 lakh ... You dont need to pay tax . So if i widraw 2000 $ from paypal .. ( 500 +500 +500+500) in this whole year . Do i need to pay tax. Please clarify for me.... T_D
^^ No you don't need to. But probably something like service tax or VAT if you are selling something?
Correct but ur income doesn't only comes from Paypal correct , u have some other sources also kinda job , so if it exceeds 1.5lacs , u will need to pay IT(Income Tax)
Actually you don't have to pay tax for 1.6 lakhs + 1 lakh (excemption for investment in lic,ppf,nsc,tax saver mf etc.) = total 2.6 lakhs. But keep in mind that you have to file a return for Nil to for this in IT. DON.
@ToP_Designer: If the payment is withdrawn in name of a female, then it's 1.9lack. For males it's 1.6 lack.
Kaboom, I'm an Indian & I have been using paypal for almost 4 - 5 yrs & when paypal started offering FUNDS WITHDRAWAL TO INDIAN BANK a/c , I started using it right away. I never had problems withdrawing funds to your bank a/c , even though you don't file Income Tax return , the Income tax guys can check your bank a/c & source of funds. So always pay your tax & consult an auditor regarding this. If you are going to withdraw huge funds to your SAVINGS A/C , then do it in parts as said by others to avoid any problems. On the other hand , if you use CURRENT A/C , then no worries on withdrawing large amount as long as Paypal limitations stops you. So heres the conclusion 1. Paypal -> Savings A/C = withdraw funds in smaller amounts (less than or equivalent to USD 1k in single transaction) , but make sure to file your income tax returns & pay tax. 2. Paypal -> Current A/C = don't worry about volume of money withdrawn as long as paypal allows. I have done withdrawals to both SAVINGS & CURRENT a/c , but I do pay my taxes Hope this clarifies.
@phpsundar : If the payment is withdrawn in name of a female, then the tax limit is 1.9lack. For males it's 1.6 lack. So, if I withdraw 48k Rs., then I can bypass tax.
Can you tell me if i have to pay taxes on the money in my paypal account or only on the money that i withdrawn from paypal to my indian bank account? Will i have to submit the paypal transaction statement to tax authorities? Please help.
You have to pay tax on funds withdrawn from paypal to your indian bank account. If they ask for paypal transaction statement then you need to give them (IT people). DON.
I have withdraw only below 80k and i used to pay to subcontractors, coders, etc from my paypal itself. So will i need to pay tax for this amount (80k) i withdraw to my bank account? or should i pay only if i reach 1.5k? Can you tell me when i have to pay tax? on next march? Please tell me if the IT people calculate tax for the funds i recieved or spend on paypal transaction statement or only for the amount i withdraw to my bank account?
You have to pay tax only for the amount you withdraw to your bank account. BTW i suggest you to consult any CA for all this. DON.
^^ The problem is that most of the CA's have no Idea what PayPal is. :| I went to a CA and told him that I earn x Lakh/month and asked what amount of tax should I pay. He instead asked me to coach him on making Money Online!!
ROFlMAO ) That's the same thing happens with me too, People ask me where the hell my money is coming from, and when i tell them, they are like >>WTF!!
I am so confused after reading the entire thread ! and to top it all my C.A has no clue what is PayPal money