Hi, I have a query from a friend of mine, and something i wish to know as well. Paypal has made PAN mandatory for all users during withdrawal, so what i wish to wish to know is, if we enter our PAN number today then will paypal share ONLY the withdrawl figures from current date with income tax dept, or will paypal share all previous transactions and withdrawls from that account as well? If anyone has an answer, please let me know.
I think now onwards paypal send payment to us alongwith our PAN details so RBI track further if any doubt. DON.
Look, what i mean to say is.. Will they just report the withdrawls made, or the previous transactions well? Like the ones made a year back? From what i think onlu the withdrwawl reports are sent to income tax dept from Paypal, to the respective pan holders.
No its from the date you added and it will show the transaction from there on. Every transaction to withdraw and send will be tracked.
Phew Good. But how can you be so sure? One more question.. if i enter my pan and i withdraw to dad's bank account (someone with same surname) then who pays tax and who gets tracked?
I think no one can answer this. You need to tryout yourself for this and let us know the outcome DON.
From a pure accounting point of view, the income is yours because it accrued to you and was earned by you. Merely diverting the income to another person's bank account does not take away the burden of income from your head.
Pan card is necessary now because RBI want to track incoming flaw of money from outside the India. And I dont think there is anything wrong with it.Its pretty easy process to get PAN card
I think only the high net transactions(i mean total amount during a particular period) will be shared with the RBI
I assume this to be true too. But nevertheless it wont solve the OP's question. Yes, it is very easy to get a PAN card legally ( but I assume OP has his PAN card, he is only doubtful before adding it to paypal) RBI's rules are surely intended to stop money laundering and other illegal money flow mechanisms, but they do not succesfully do that, not even with the new Paypal rules, because they are just for webmasters aka paypal users. Very good point. yes, if PAN is yours then income is yours no matter what. you must relax yourself ( unless you have made a really questionable amount of money, say 25 lacs ) RBI has rules to avoid illegal things, but that doesnt mean they catch everyone, they dont have that much time to review everyone's records, neither they review records of annual amounts less than 5-10-20 lacs. you can question my source of knowledge. I agree I have not worked in RBI, neither I have friend in it, but my suggestion is a mix of some information from CAs plus a common sense. paypal may send RBI your historical records because it is bound to do so, but it wont be reviewed for sure unless your current records are reviewed and found questionable. I hope it helps.
Put any PAN no it is not tracked.I dont even have a pan card but still able to withdraw.Put any arbitrary no.
I guess you cannot answer this... there is no clause what so ever for this. I believe paypal will have to provide all the details including all the transactions made before.. i may be wrong though...
Honestly, I find this step of RBI of making PAN mandatory for withdrawal to be the funniest. Like they want to track the withdrawal with the PAN info - but since you are going to withdraw to bank anyway, where you already probably have your PAN attached, they can (and does) easily track from the bank where you withdrew as all banks are obliged to provide any information to RBI. What's the point of tracking from both ends, Paypal and Bank when they are perfectly able to achieve the exact outcome just with the bank's end?
The PAN card was mandatory because originally we were not supposed to withdraw all the money earned in the bank accounts. Thats time paypal was usable to spend the earnings online.
Yepp, it seems the real thing. But now when we have no other option, but to withdraw in the bank - why still making PAN requirement critical in Paypal?
It's because Indian government wants to track everything possible and try to earn maximum via taxes. India's black money is estimated somewhere between $462 billion to $1.4 trillion and RBI is nothing about it. I don't understand why RBI is targeting Paypal India rather than getting black money first.
You are absolutely right there. Instead of running behind webmasters they need to running behind big fishes like politicians,ministers,cricketers,bollywood stars,business tycoons etc. DON.
Lets face it! Even if they bring all the black money to India, bureaucrats and parties will make a lions share for it and an ordinary indian will never benefit from it. These are just nothing more than propaganda.