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Indian Paypal - Income Tax and PAN query

Discussion in 'PayPal' started by ifreakz, May 28, 2011.

  1. #1
    Hi,
    I have a query from a friend of mine, and something i wish to know as well.

    Paypal has made PAN mandatory for all users during withdrawal, so what i wish to wish to know is, if we enter our PAN number today then will paypal share ONLY the withdrawl figures from current date with income tax dept, or will paypal share all previous transactions and withdrawls from that account as well?


    If anyone has an answer, please let me know.
    SEMrush
     
    ifreakz, May 28, 2011 IP
    SEMrush
  2. deluxdon

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

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    #2
    I think now onwards paypal send payment to us alongwith our PAN details so RBI track further if any doubt.

    DON.
     
    deluxdon, May 28, 2011 IP
  3. olddocks

    olddocks Notable Member

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    #3
    of course they can, if need be if you are involved in money laundering or other criminal activities.
     
    olddocks, May 28, 2011 IP
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  4. ifreakz

    ifreakz Well-Known Member

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    #4
    Look, what i mean to say is.. Will they just report the withdrawls made, or the previous transactions well? Like the ones made a year back? From what i think onlu the withdrwawl reports are sent to income tax dept from Paypal, to the respective pan holders.
     
    ifreakz, May 28, 2011 IP
  5. karthimx

    karthimx Prominent Member

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    #5
    No its from the date you added and it will show the transaction from there on. Every transaction to withdraw and send will be tracked.
     
    karthimx, May 28, 2011 IP
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  6. ifreakz

    ifreakz Well-Known Member

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    #6
    Phew Good.
    But how can you be so sure?


    One more question.. if i enter my pan and i withdraw to dad's bank account (someone with same surname) then who pays tax and who gets tracked?
     
    ifreakz, May 28, 2011 IP
  7. deluxdon

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

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    #7
    I think no one can answer this. You need to tryout yourself for this and let us know the outcome ;)

    DON.
     
    deluxdon, May 28, 2011 IP
  8. gr8liverpoolfan

    gr8liverpoolfan Notable Member

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    #8
    From a pure accounting point of view, the income is yours because it accrued to you and was earned by you. Merely diverting the income to another person's bank account does not take away the burden of income from your head.
     
    gr8liverpoolfan, May 29, 2011 IP
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  9. AcePublisher

    AcePublisher Peon

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    #9
    Pan card is necessary now because RBI want to track incoming flaw of money from outside the India. And I dont think there is anything wrong with it.Its pretty easy process to get PAN card
     
    AcePublisher, May 30, 2011 IP
  10. azhar

    azhar Greenhorn

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    #10
    I think only the high net transactions(i mean total amount during a particular period) will be shared with the RBI
     
    azhar, May 30, 2011 IP
  11. psharma

    psharma Prominent Member

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    #11
    I assume this to be true too. But nevertheless it wont solve the OP's question.

    Yes, it is very easy to get a PAN card legally ( but I assume OP has his PAN card, he is only doubtful before adding it to paypal)
    RBI's rules are surely intended to stop money laundering and other illegal money flow mechanisms, but they do not succesfully do that, not even with the new Paypal rules, because they are just for webmasters aka paypal users.

    Very good point. yes, if PAN is yours then income is yours no matter what.

    you must relax yourself ( unless you have made a really questionable amount of money, say 25 lacs ) RBI has rules to avoid illegal things, but that doesnt mean they catch everyone, they dont have that much time to review everyone's records, neither they review records of annual amounts less than 5-10-20 lacs. you can question my source of knowledge. I agree I have not worked in RBI, neither I have friend in it, but my suggestion is a mix of some information from CAs plus a common sense.

    paypal may send RBI your historical records because it is bound to do so, but it wont be reviewed for sure unless your current records are reviewed and found questionable.






    I hope it helps.
     
    psharma, May 30, 2011 IP
  12. abhijit

    abhijit Notable Member

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    #12
    Put any PAN no it is not tracked.I dont even have a pan card but still able to withdraw.Put any arbitrary no.
     
    abhijit, May 30, 2011 IP
  13. prashantban

    prashantban Well-Known Member

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    #13
    I guess you cannot answer this... there is no clause what so ever for this.
    I believe paypal will have to provide all the details including all the transactions made before.. i may be wrong though...:)
     
    prashantban, May 30, 2011 IP
  14. Ausdrez

    Ausdrez Well-Known Member

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    #14
    Honestly, I find this step of RBI of making PAN mandatory for withdrawal to be the funniest.

    Like they want to track the withdrawal with the PAN info - but since you are going to withdraw to bank anyway, where you already probably have your PAN attached, they can (and does) easily track from the bank where you withdrew as all banks are obliged to provide any information to RBI.

    What's the point of tracking from both ends, Paypal and Bank when they are perfectly able to achieve the exact outcome just with the bank's end?
     
    Ausdrez, May 30, 2011 IP
  15. psharma

    psharma Prominent Member

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    #15
    The PAN card was mandatory because originally we were not supposed to withdraw all the money earned in the bank accounts. Thats time paypal was usable to spend the earnings online.
     
    psharma, May 31, 2011 IP
  16. Ausdrez

    Ausdrez Well-Known Member

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    #16
    Yepp, it seems the real thing.

    But now when we have no other option, but to withdraw in the bank - why still making PAN requirement critical in Paypal?
     
    Ausdrez, May 31, 2011 IP
  17. nihangshah

    nihangshah Prominent Member

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    #17
    It's because Indian government wants to track everything possible and try to earn maximum via taxes.

    India's black money is estimated somewhere between $462 billion to $1.4 trillion and RBI is nothing about it. I don't understand why RBI is targeting Paypal India rather than getting black money first.
     
    nihangshah, May 31, 2011 IP
  18. deluxdon

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

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    #18
    You are absolutely right there. Instead of running behind webmasters they need to running behind big fishes like politicians,ministers,cricketers,bollywood stars,business tycoons etc.

    DON.
     
    deluxdon, May 31, 2011 IP
  19. olddocks

    olddocks Notable Member

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    #19
    Lets face it! Even if they bring all the black money to India, bureaucrats and parties will make a lions share for it and an ordinary indian will never benefit from it. These are just nothing more than propaganda.
     
    olddocks, Jun 1, 2011 IP
  20. deluxdon

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

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    #20
    You are right. Money is more safe at outside India :p

    DON.
     
    deluxdon, Jun 1, 2011 IP