Hi DP members, I am opening a small hosting company and want to just accept credit cards. I know PayPal is the best option but want to know a few things before I go with it. 1) I already earn taxable income as I work in an IT company. If I open a hosting company and provide my PAN number to PayPal, then will I have to pay the tax for whatever amount u earn from PayPal? 2) lot of people say that scroll/money booker is also good for Indians.. Does it require PAN number? 3) Is there someway either tax is automatically deducted by PayPal while withdrawal or I can save full tax on it? Or else how and where can I pay tax for money earned through PayPal? Please help ASAP.. Thanks in advance
1. Income earned from PayPal is taxable and you need to pay Income Tax as per latest laws. When you enter your PAN in PayPal, all your income gets tracked by IT department. 2. Payza / MoneyBookers don't require PAN. 3. Tax is not automatically deducted. You pay Income Tax using Challan 280 at this site, if you have netbanking account.
Thanks Nihangshah it is really helpful Btw do you know or can suggest a better option for Indians apart from Paypal? It would be better if it does not required PAN card