Important Update from Paypal for PayPal India Users : Change in User Agreement

you should go and talk to some CA he will help you out

 

Invest in PPF, Life Insurance, ELSS, National Savings Certificates, etc. to save tax under Section 80C of the Income Tax Act. The maximum tax rebate you can avail is Rs. 1 lac.

 

Better you guys save all your money in Swiss Bank Account. No Income Tax shit.

 

What an idea sir ji ??
Please save it for yourselves.

 

I just have made fun, dude!

 

i gone to CA but he said i must submit mine income documments means from which source i earned that money and from which country i got cash in paypal but friends im online IM and freelancer how come i get any receipt of this online work which i done and how can u show that receipt cause its all digital product ...

 

may be showing them transaction history can help?

 

Okay. here is what i do:

I am running a business. I create invoice for each and every transaction I do. I bill to the clients. (many clients do not require/ask invoice; so just maintain it for tax purpose). create PDF account statements from Paypal every month. and maintain the accounts using any accounting software. I use tally. during the month of jan. check out all transactions and compute the tax and pay advance tax if it is required. pay all taxes on or before Mar. 31st. and submit the IT returns along with paypal statement, bank statements. I maintain the accounts in INR and invoice would be in USD.

I do not provide any receipts. I provide them the invoice and the paypal statement. If they asked you any receipts then check with them whether the paypal statement is okay. if not take a print out of paypal transaction details and show them.

I do this every year. It is the 4th year I am submitting the IT returns for my business.

I hope it helps. If you need more info let me know.

 

You need to maintain proper accounts. even if your revenue is more than 1 lakh. you will pay salary, system maintenance and other expenses. make investments upto 1 lakh to claim tax benifit under 80C

 

Service tax is applicable if your total revenue (revenue not net income) is more than 10 lakhs per year. So, if your revenue is more than that then you need to register and pay service taxes too.

 

hi Fellow Freelancers whats your latest option now is there any alternative to the paypal?? Initially i thought its a temporary thing now it seems RBI is very adamant about paypal in India.

 

yes, infact you can download whole excel sheet, which you can download paypal history. Take printout and show for auditing.

 

Hi guyz,
I receive payments for doing some software work in my paypal account, which purpose code shud i choose???

Anyone got payment for more than 500$ recently? i'll receive 2k in my paypal next month(june).

 

Choose Information technology > Software Consulting.

 

Service tax is not applicable to Services provided to Non India Citizens who has paid in a currency other than INR.

 

In fact it shouldn't be too. Thats great to hear.

 

I am doing a web hosting business, I get money in a USD on my paypal but when I withdraw money then I get a money in INR.

I need to pay tax or any other thing I need to do ? FEMA Registration?

 

Yes you have to pay tax
it doesn't matter in which currency you earned only the thing is your earning > 1.8 Lacks you have to pay tax
and read above thread many knowledgeable people given advice "how to save tax" you can also search in google

 

Thanks for reply,

What about this?

"Service tax is not applicable to Services provided to Non India Citizens who has paid in a currency other than INR."

Code (markup):

and this?