need to Pay tax?? withdrawn $5k+ per month from paypal

Discussion in 'PayPal' started by ram.sharma, Dec 19, 2012.

  1. #1
    Hi all,
    I am earning $5k+ from internet and i withdrawn all money using paypal to my 4 bank account
    So my question is that should i need to pay tax for internet money?? If yes then if i dont pay then is there any risk?

    Please tell me in brief

    I am student i have no other source of income except internet
     
    ram.sharma, Dec 19, 2012 IP
  2. lifeplayer

    lifeplayer Notable Member

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    #2
    theoretically you gotta pay tax according to the government rules if you have income no matter it is offline or online
     
    lifeplayer, Dec 19, 2012 IP
  3. deluxdon

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

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    #3
    Definately you need to pay income tax as your earning is more then 30 lacs in a year. Contact any good CA near to you and ask about procedure to pay tax IMO.

    DON.
     
    deluxdon, Dec 19, 2012 IP
  4. nihangshah

    nihangshah Prominent Member

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    #4
    Your PayPal account has PAN entered, which automatically reports high value transactions to IT department.

    Yes, you'll need to pay Income Tax as per current laws. For Assessment Year 2013-14
    If income is below 2 lacs to 5 lacs, you pay 10% tax
    If income is below 5 lacs to 10 lacs, you pay 20% tax
    If income is above 10 lacs, you pay 30% tax

    Use Form ITR 4 (for income from business/profession) to file your return.
     
    nihangshah, Dec 20, 2012 IP
  5. Card

    Card Well-Known Member

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    #5
    At what month of year can we start file for the income?
     
    Card, Dec 20, 2012 IP
  6. deluxdon

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

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    #6
    From April month. BTW you can pay advanced tax as well.

    DON.
     
    deluxdon, Dec 20, 2012 IP
  7. ayoo

    ayoo Guest

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    #7
    yes you should
     
    ayoo, Dec 20, 2012 IP
  8. PT Boy

    PT Boy Active Member

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    #8
    You should declare it although you should get professional advise as there may be none to pay when you use your allowances and off set costs etc.
     
    PT Boy, Dec 20, 2012 IP
  9. deluxdon

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

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    #9
    Its not possible in this case as earning is very very high IMO.

    DON.
     
    deluxdon, Dec 20, 2012 IP
  10. archc

    archc Banned

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    #10
    Good achievement ! A student is earning 2 lacs 75 thousands each month. It is comparable to the director of a company.
    You have to pay the tax.
    Would you like to share how do you earn that much each month?
     
    archc, Dec 20, 2012 IP
  11. humtuma

    humtuma Notable Member

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    #11
    Don't worry about tax , if you are earning 5K per month . Paypal will inform to Indian Government automatically, if you with drawl more than 500$ at a time where you are 5k.
     
    Last edited: Dec 30, 2012
    humtuma, Dec 30, 2012 IP
  12. m00nster

    m00nster Peon

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    #12
    Haha Tech Support :D so he earn 5k ;) same as me <3
     
    m00nster, Jan 1, 2013 IP
  13. Hack2star

    Hack2star Member

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    #13
    Ya I would like to know!! How you earning per month?

    Look like black hat method!!!!
     
    Hack2star, Jan 1, 2013 IP
  14. nihangshah

    nihangshah Prominent Member

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    #14
    Assessment year starts from April to March every year.
    Last date for filing Income Tax return is 31st July for individuals and 30th September for audited accounts.

    If income tax being paid is less than Rs. 10000/-, then it's called Self Assessment Tax
    If income tax being paid is more than Rs. 10000/-, then it's called Advance Tax

    Just like one pays monthly EMI for home/car/education loan, same way you pay Advance Tax in installments.

    Last date for companies to pay Advance tax is 15th June, 15th September, 15th December and 15th march (4 installments)
    Last date for individuals to pay Advance tax is 15th September, 15th December and 15th march (3 installments)

    You can pay taxes using net banking account (use Challan 280) at https://onlineservices.tin.nsdl.com/etaxnew/tdsnontds.jsp
    and then efile your return at https://incometaxindiaefiling.gov.in/

    I'll suggest every one to invest in schemes falling under Section 80C like PPF, tax saving ELSS funds, 5 year bank FD, etc. If you invest in those schemes, then you'll have less taxes to pay.
     
    nihangshah, Jan 4, 2013 IP
  15. deluxdon

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

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    #15
    You can consider LIC premium,policies and Rajiv Gandhi Bonds for this as well.

    DON.
     
    deluxdon, Jan 4, 2013 IP
  16. L_B_Photo

    L_B_Photo Peon

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    #16
    yes would be interesting to know how you earn that much lol, and tips would be very very grateful :)
     
    L_B_Photo, Jan 6, 2013 IP