Hi folks, I earned some $1500 via paypal last year. of that i transferred around $400 to my bank here in India, bought softwares worth $500 while the rest is lying in my pp a/c. my question is how will I show the income in my return. shall i declare only the 400 bucks which i brought back or the whole income. also if i show the full amount shall i get any rebate/depreciation/expense for the softwares which i bought. do i have to provide any foreign inward remittance certificate from by bank or any other documents. my auditor havent heard of paypal any thoughts will be highly appreciated.
I think you added the PAN card in your paypal accunt.Becoz this is mandatory for paypal users of india.the pan number will track your income and tax returns.
Your bank statement should be sufficient for the time since it reflects the inward foreign remittance. Tell your auditor that paypal is nothing but payment processor and you are processing credit cards of foreign clients through paypal. To show proof print all paypal receipts and take it to him.
Yes most of the auditor does't know about paypal. You need to show only the withdraw amount which means your bank account that you withdraw.
find an auditor at caclubindia and he should be able to help you. those are all tech savvy auditors in there.
I dun get it... first thing you cannot keep money in your paypal india account for more than 7 days.... PP will push the money to the bank account registered or will forfeit it in case no bank account is registered... next you cannot declare $400 because paypal in order to work in india shares all the data with the RBI... an moreover after april (the declared date was march, but the implementation took time), you cannot use your PP balance to pay for the things you buy online... instead you will have to join a Credit Card with Paypal account and then whenever you pay... your money is taken of the credit card... i do this on daily basis... hope that helps! PS: you cannot hide this money from IT Deptt.