Make auto withdrawal button added in indian paypal - 7 days withdrawal rules started

Well nothing happened till now in my account!
What about Other guys ..esp those with Autowithdrawal turned on +Valid PAN entered...has it been enforced on such accounts (daily withdrawal as they say it) ? Does anyone know?

 

I dont think PAN has any significance anymore. RBI needed paypal to capture PAN when they were not enforcing the bank transfer strictly to track down money being recieved and spent at paypal, but now since the money cannot be used anywhere except bank transfer, RBI has got it round this time, every bank need to file returns with RBI PAN number wise every year, so they dont need paypal to produce any PAN number, banks will do it, so this do not save you, if your account is old and no PAN exists there, then expect a bank notice in the near future as they have already started enforcing usage of PAN with bank accounts.

 

The RBI-PayPal 7 day withdrawal notification (RBI/2010-11/281, Circular No. 17) came into effect from 1st March 2011. Now, it's almost the middle of August and they still haven't been implemented...

If you can change laws, then why can't you implement it?

 

I think PP wants to earn interest. But with that being said, i dont like 7 day withdrawal rule at all i guess nobody wants to earn interest by withdrawing once in 7 days. It is such a small amount and not worth the effort. I prefer withdrawing manually once in 15 days.

 

Can we Receive more than 500$ in Indian Paypal account or we have to split payments in 500$ as first payment and other amount as second payment?

 

there is a auto withdrawl button in paypal but its not made compulsary, if you need you can use it.

 

This reply is so confusing and weird!
Kindly explain what you mean by above. I hope you are not talking about some TDS (Tax deduction at source).
AFAIK only transactions >50kINR require the bank to ask/quote a PAN number and those may be the ones which go through scanner (if you are talking on saving tax lines)

 

Right now you can still receive more than $500 into your paypal account as paypal have not yet implemented this rule, but better to play safe to save your account from being limited in future.

I selected the auto withdrawal option and still nothing happened for almost 10 days, so i manually withdrew the money yesterday and everything happened smoothly, i assume they are still implementing and testing things.

The basic idea of bringing your paypal money through your bank transfer method is to find out who is avoiding paying tax by using paypal for selling and buying. Irrespective of whether you buy with your bank transferred money or not you are supposed to pay tax for all receipts, of course, there are some amount those you spent which gets exempted, but that comes later when you claim refund from tax guys. Banks ask for PAN number when you transact more than Rs50k. But if your overall amount transacted in an year goes above the taxation limit then you are in trouble if you don't file the Income Tax return.

 

What kind of troubles u r talking about? I dont think they care about small guys. Such people are in lakhs in india. I have a friend who uses bank money and other money and has never paid tax and has never had any issue, even while transacting about 5 -8 lakhs .

 

This isnt true. You will need PAN only if you are depositing 50k+ by cash deposit. This is just to check the cash inflow.
if you do transfers using netbanking, cheque, demand draft etc.. no problem.

dont worry... you dont need to file returns at all if you dont want to. But keep in mind IT returns will be compulsarily asked if you do the following..

1. Applying for credit card
2. Real estate transaction, if you are getting inheritance.
3. Getting loans for buying car, bike etc..
4. Foreign tours and applying for visa
5. High value cash transactions above 1 lac or more.

As long as you stay away from above things, you are fine. But the problem is you cant, when you earn more and more money.
Keep in mind that all banks are supposed to report their customer transactions to IT department on yearly basis. Suppose if you havent filed taxes, and banks may report you.

Taxes are necessary evil, and you cant run away from it.

Just talk to a chartered accountant or auditor, pay him about 2-3k and he will guide you and make things easy.

 

I withdraw money from paypal once a month. whats the 7 day thing?

thanks in advance. just curious to know.

ashish patel
affiliate marketer & blogger

 

I dont know about that friend. But this list doesn't sound REAL

1. I got a credit card and no one asked for anything
2. N/A
3. Not sure but i have been getting notifications from my HDFC bank to get Loans (pre-approved to the tune of 10lakhs or so). I didn't apply ofcourse so thats why( may be) no one asked for anything
4. Just confirmed. My another friend went to singapore last yr. No one asked for anything.
5. I have sent bank wires worth >1.25lakhs. No one asked for anything.

So?

Do you use some online consultants? I am not sure who people consult (the best way possible) for tax calculations for money from abroad (not just online money)
Details, if any, would be nice. (May be for sure )

 

It means automatic withdrawing all your money from PayPal to your preferred bank account, without asking for your permission.

 

hey, thats a good response. i have outlined the above factors from general perspective and here is what my auditor opinion...

1. Typically credit card is a loan and that means PAN is often asked (dont know if you have given PAN). Through pan IT can track you. I agree that few banks issue credit card with PAN.
2. Real estate- you will never know when your parents may sell land or house and you may get money through inheritance. since it involves lacs, a PAN is often asked.
3. Singapore and south asia can be travelled by anybody with SOTC or other travel agency provided the travel costs are below 1 lac. Try visiting europe, US and UK and definitely it costs about 1.5 lacs per person and you cant without IT returns.
4. My CA tells me often to keep transactions below 5 lacs per transaction (domestic or international), just to be on the safer side.

oh, how did you sent wire transfer abroad? i approached icici and they told me i have to fillup a lot forms? how did you do it.

I would never use them as filing IT requires careful assessment and i always approach CA directly. if you make any mistakes in calculations, you will be called upon.

 

auto withdrawl is optional if we have more than one bank account

 

Banks only report (automatically) when overall deposits or withdrawals exceed above 10 lakhs in a year totally.

If you havent given your PAN and make deposits / withdrawals in excess of 50,000 Rs in one single transaction, that particular transaction is notified to the IT dept. But just because the transaction reaches the IT dept, doesnt mean you are in trouble, as 10000s, if not lakhs, of such transactions happen every year. They do use some sort of filtering software, and if your transaction is filtered by the s/w, they may look it up manually and may issue you a notice.

As far as real estate is concerned, if you purchase a property greater than 5 lakhs they'd ask for a PAN. If you dont have one, you'd be asked to fill some form. But the bottomline is, if one earns income > taxable limit, one should get a PAN and pay their taxes. But do everyone do that, not so.

 

Thanks mate I thought its important to withdraw money within 7 days from the date of reciept.

-ashish

 

1) Yes they took PAN copy though.
2) ok
3) he went to europe too once i think. WHen you says sotc and stuff is ok, you mean air travel abroad is not possible?
4) 5lacs? isnt that too big amount to be on safer side? i think it should be less than 50k (divided transactions). What your CA means to be "safe" in this case? safe from paying tax at all or safe from stopping income tax officials to raid your house?

- Yes i filled 2 simple, 1 page forms (HDFC bank) One was for reason for remittance and other for amount/sender/receiver details. Was smooth and no one asked anything !
- " if you make any mistakes in calculations, you will be called upon" who calls? Also do you think online consultants/services are college dropouts, they they will provide wrong calculations/advise?

Can you quote someone credible online or a weblink saying the same? Just want to know.
Also you said "when overall deposits or withdrawals" are you sure, its not total of both?
Also you said "automatically", in above case. What amount requires them to send it manually/specifically?

Thanks

 

1. All information is available in RBI notifications and everything is in RBI website, I have seen it myself. I think it might be under KYC (Know your customer) regulations specified by RBI to banks.
2. Yes, It is separate! If you withdraw 10 lakhs a year (overall) or deposit 10 lakhs a year (overall), your account will be reported.
3. Everything is automated these days. Bank officials are not going to go thru each and every transaction and report it. They are lazy as well as they dont have the man power. But they do report manually if they suspect an account holder, because he transacts big amounts within a short period of his opening the account or if they suspect him of terrorist activities, some thing like that.

 

Let's not forget that because of joint efforts of both Reserve Bank of India and IT department, they stashed over $1,456 billion of black money in Swiss Banks and handled over $1.80 trillion of Indian scams.

Thank you, RBI and IT department - you deserve all the credit.