Do I need to pay tax if I withdraw from Paypal to Bank Account?

Discussion in 'PayPal' started by SwanWing, Dec 21, 2009.

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  1. #1
    Hello All...

    I want to know know whether I need to pay tax for the money withdrawn from paypal to my bank account in India.

    I want to withdraw about $500-$600, so can anyone tel me whether tax is applicable here... :confused:

    Regards
     
    SwanWing, Dec 21, 2009 IP
  2. peepin2me

    peepin2me Well-Known Member

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    #2
    It depends on your annual income. No income tax is applicable on all income up to Rs. 1,60,000 per year. (Rs. 1,90,000 for women and Rs. 2,40,000 for senior citizens). If it crosses the limit, you are liable to pay tax on your income.
     
    peepin2me, Dec 21, 2009 IP
  3. saurabhj

    saurabhj Banned

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    #3
    Yes definitely those amount will be taxable.
     
    saurabhj, Dec 21, 2009 IP
  4. SkyisLimit

    SkyisLimit Well-Known Member

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    #4
    if its, below 50k for a single transaction, u need not pay any tax.

    do not get confused, its a common thing, if ur earnings start increase, then u be prepared, to pay some tax. its good.


    xx
     
    SkyisLimit, Dec 21, 2009 IP
  5. peepin2me

    peepin2me Well-Known Member

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    #5
    :eek:
    Not true!
     
    peepin2me, Dec 21, 2009 IP
  6. Digital_shubhi

    Digital_shubhi Illustrious Member

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    #6
    Ya, thats true. :)
    Bank needs PAN card if your one transaction is more than Rs.50K.

    - Mr.President -
     
    Digital_shubhi, Dec 21, 2009 IP
  7. SkyisLimit

    SkyisLimit Well-Known Member

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    #7
    Thanx Subhi,

    finally got a person, who not interested in just increasing the NUMBER IN posts.:D
     
    SkyisLimit, Dec 21, 2009 IP
  8. peepin2me

    peepin2me Well-Known Member

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    #8
    Not true again. Bank needs PAN number only if you do a cash transaction of 50k or above. If you withdraw from your paypal account or do an online funds transfer, you do not have to provide PAN number even if the amount exceeds 50k.

    If you are under the assumption that doing transactions of less than 50k means you do not have to pay tax, then you are seriously mistaken. There is no clause in the I.T. Act which says if you withdraw/deposit in amounts less than 50k you are exempted from paying taxes.

    Shawn and I have a secret deal where he pays me $100 for every 100 posts I make in this forum :rolleyes:
     
    Last edited: Dec 21, 2009
    peepin2me, Dec 21, 2009 IP
  9. rcj662

    rcj662 Guest

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    #9
    I think no matter what you should add it to your income tax that year. If they find out about the money i am sure the penalty fees would not be worth it.
     
    rcj662, Dec 21, 2009 IP
  10. merchantvip

    merchantvip Guest

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    #10
    Everyone uses paypal!!! I work for a merchant company and it super easy to get approved. They have wayyyyy lower rates.
     
    merchantvip, Dec 21, 2009 IP
  11. deluxdon

    deluxdon Catch Me If You Can...!!!™ Staff

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    #11
    deluxdon, Dec 21, 2009 IP
  12. OldEgold

    OldEgold Peon

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    #12
    below 50K inr no need to pay tax for single transcation
     
    OldEgold, Dec 21, 2009 IP
  13. Safetyfirst

    Safetyfirst Active Member

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    #13
    Well yes as the money would go to your bank account , it would be added in your annual income , so you have to pay tax for it.
     
    Safetyfirst, Dec 21, 2009 IP
  14. Arrow

    Arrow Peon

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    #14
    Hey mate if you are withdrawing 500-600$ then no need to pay tax.
    But if you think that your annual income is more than 1.6 Lakhs then you will have it pay the tax.

    or else dont worry!!!!
     
    Arrow, Dec 22, 2009 IP
  15. SwanWing

    SwanWing Greenhorn

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    #15
    Thanks guys... :)
    That's some very very useful info.
    The IT stuff was a confusing issue for me. But with this thread and a few more mentioned by deluxdon, I am quite clear about that now... ;)
     
    SwanWing, Dec 22, 2009 IP