Paypal and income tax in india

Discussion in 'PayPal' started by JITU66, Apr 19, 2008.

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  1. #1
    Withdrawing money to an indian bank account through paypal can cause any income tax problem.
     
    JITU66, Apr 19, 2008 IP
  2. getjimmy

    getjimmy Prominent Member

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    #2
    No unless u r already paying tax.
     
    getjimmy, Apr 19, 2008 IP
  3. infogle

    infogle Prominent Member

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    #3
    rightly said... dont treat paypal treat the funds you are getting in your accounts its the indian money you are getting so you need to file income for that...
     
    infogle, Apr 19, 2008 IP
  4. goforhunt

    goforhunt Banned

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    #4
    you need to be smart and sensible mate!
     
    goforhunt, Apr 19, 2008 IP
  5. a4arron

    a4arron Active Member

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    #5
    yh man as u r transfering money from paypal to indian bank , so u need to pay the income tax according to the slab for year 2008 and there is no need to pay tax below 1.5 lacs annually :)
     
    a4arron, Apr 19, 2008 IP
  6. shahab

    shahab Peon

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    #6
    or you can use e-gold and get the funds anonymously ;)
     
    shahab, Apr 20, 2008 IP
  7. eddy2099

    eddy2099 Peon

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    #7
    Earning an income and withdrawing funds to your paypal accounts are two very different thing.

    Income tax as the name suggest is a tax on income and not on how much you deposit into your bank account. So rightfully so, it means that as long as you are physically in India when you earn the income, the profits would be taxable in India whether you decide to spend it, leave it in Paypal or withdraw it.

    Of course, the premise that if you do not withdraw the money, the Indian Government doesn't know about it may be right in reality but it is definitely not the legal thing to do. I know people do bend the rules, break them or find some loopholes thinking they will never be caught and you may not but it is just not right.
     
    eddy2099, Apr 20, 2008 IP