India - Taxes on Paypal Income

One question regarding taxes in india. Do I have to pay taxes on the money in my paypal account or only on the money that I withdraw from paypal to a bank account in india?

Thanks

 

I think for this only... You dont pay tax for "money sent or used"

 

If the online income is below the tax slabs in India is the amount still taxable?

 

So if I earn $1000, spend $900 of it on paypal and withdraw $100 I have to pay taxes on the $100 only?

 

I think you have to pay in total earning and the rest amount you can show as business expense.

.SR

 

Income from all the sources is consolidated and considered for taxation purpose in India. So even if your online income falls below tax slab, but if there are any other income, that is added to consider your income to be taxable or not. Even if your income falls below taxable limits after the standard deduction, the "Tax Return" is to be filed, may it be for "Zero Taxable Income".

Only standard deductions mentioned in the Taxation laws are allowed for deductions and not just any spending / Expenditure. If the total income crosses the taxable limit, you have to file the tax return.

Thats all as per my understanding, I'm not an expert.

 

Yes.. (but plz confirm as I have no CA knowledge )

 

Hello !

I am not an expert, but I gathered the below information from various forums. Could be helpful to you

I am afraid you are not going to be happy. The law states that any form "Income" you earn is liable to IT Tax. To be more clear, IT act is upon the income earned and not on what is left out.

In this case, though you have not withdrawn from your paypal account, the amount is still owned by you. Hence when you file your return (assuming that you have crossed the minimum Tax slab), you will have to pay tax on this Income after standard deduction, Investment upto 1 lac and business expenses.

Techinically speaking, the amount in your paypal account will be considered as "undisclosed" income as and when you are questioned by IT.

However one good news is that you can considerably reduce the tax since your category falls under " Income under profession/business" where you can show maximum expenses and that is Legal. You could consult an expert on this and rest in peace.

Hope this helps !

Regards

Jeet

 

Since your above 18 ( you have to be to get a paypal account ), your earnings from paypal will be below the tax level. Else, consult tax consultant

 

if we are below 18(like 15) and earn 2000$/month then do our parents have to give tax when we withdraw to their bank account?
and if we withdraw to our bank account then whaT?

 

Leaves me confused. Can a person holding an individual or premier account claim for expense while filing returns ?

 

u dont gota pay taxes if ur monthly income is below a certain amt rite? so withdraw limited frm paypal na? ok 1 ques i have is can u withdraw to indian bank frm unverified paypal? or do v need a cc i mean u r adding a bank ac rite isnt tat verification?

 

till now indians cant verify by adding a bank account its only for withdrawal... you can only verify by adding a credit card... maybe they will change this in the future

you can also do that by VCC's but they are risky and also have some disadvantages when you initiate a dispute claim




_