Paypal FAQs Answered For Users In India

Time is Xoom's advantage.
No special delivery currently available for Indians

 

It takes around 25dayz for the check to arrive and it takes around 3-4dayz for bank transfer < when XooM is used > however , XooM dont allow intra-india transactions

 

Please Update me on the following...
isnt using xoom for transaction in india illegal.
I found somewhere that remit to india, western union and xoom can be used only if there are personal transaction s like from family members to you .
Just need a clarification for the purpose.

 

This is what Bilal answered me
and yes.. remit2india and western union can be used only if there are personal transaction s like from family members to you .

sorry i have no idea about xoom

Zeazt.

 

which international banks in India permit direct deposit by paypal into our account in that bank in India?

 

I dont think that xoom payment is legal.
If your payment is tracked then you will land into trouble for the same.
Its a serious offence.
Correct me if I am wrong.

The Answer is NO.
Though they send it through Citibank cheque even citibank does not provide that facility.
There were news that Ebay India's Paisapay ( Powered by HDFC ) and Paypal may merge to provide facility for payment. But it still is a dream as of now.

 

Well i guess u are right
India do allow Inward Remitance the Problem is It should be an NRI Account.. This facility is only for NRI's to send money home.. You will need a IEC code to legalize it. Then u will need to show how u earn.. Sources of income.. How much u earn.. TAX....TAX....TAX well tax for life
If u do it via it there are high possibility of u will get caught sooner or later..All transactions are being RECORDED by RBI..Reviewing of account can go any time. They will ask question to the bank, Bank will ask question to u and then Income tax dept will be involved.. Well i guess at the end of the story we have to pay TAX
Why paypal do not come to Indian Bank ? Well Because of Strict RBI.. it is for protecting against Fraud and scams that the intl banks are also facing.. well it is good / bad but it is safe.
Well one thing more U can't send money outside india to any foreign country.. Well don't tell me u can ! (You will need IEC) remember RBI do not allow to send money to intl banks.. if u want to confirm go to local bank and ask.. A Inquiry for u will being ... Not easy for india alas.

 

Update

After reading a few posts on DP and few ones posted on other forums, I contacted Xoom again. This is the mail I sent and the reply I got:

And this is the reply I have gotten

If using Xoom was illegal, I am sure this customer care guy would have told me about it... Dont you think so?

 

Canned Response...
Do u think Govt will not ask u from where and why the money is coming to u...
See let Discuss from the point of view of the Govt...
Some body from XOOM dept sents u checque Okay...
Now when the cheque clear in india still XOOM is a foreign company.. Collbrating only with banks.. Anything related to RBI ? no.. They do not say abt TAX rbi or other things..
So they will ask where the money comes from like always to all the people in all whole world...It is still a remittance.
Because of Terrorist Activity it is really very strict... A person from Terror Country will send money to a Guy who he set up in india and than that guy will do some thing... So this is the basic Picture behind the Inward remitance Watch ... I guess u can understand.. I have more technical data than this.

 

hmm, I dont mean to argue with you here Bilal but if a bank is involved, the RBI will know about it. And I wont be receiving any cheques from Xoom. The only reason I would use Xoom is because I hate cheques. This is how Xoom works. I send them the payment using paypal and they'll deposit that money into a local Indian bank. It has options for sending money to around 25 banks or so and one of them in the list is ICICI Bank.

And I am not afraid of the government because I am not doing anything wrong. I work as a freelancer coder and make money on the Internet. Unless its illegal to make money on the Internet here in India, I dont think they can do anything about it. And anyways, I receive money from paypal through cheques. Terrorists could use paypal too, cant they?

By the way, can I know how exactly the tax system works here in India? Do I need to pay tax if my source of income is a foreign country?

 

Naif read the thread from starting abt iec
Well naif i know what u mean abt internet income but understand what i am telling i am not argue i am just sharing knowledge the legal issue. Even if u work on Internet YOU WORK! and every earner should pay tax. So u would have to apply for a Iec code and after that u have to show them what u earn how u earn.. I do not want to write anymore abt it coz i know it discourage many people so i would write much..

 

As far as my knowledge goes XOOM transfers from foreign countries is permitted(by Xoom itself)
So if I pay XOOM by Paypal funds and recieve a check in my bank account it appears completely legal and legitimate to me (till the point that I pay taxes and dues to the government)

"Bending the rules is acceptable as per my standards but please do not break the rules"

Al

 

Hi Bilal
You can send money to foreign bank accounts only from the bank where your account. The charges is Rs. 1150/- upto 50,000 Rs. If it crosses 50,000 in a year then IEC code, IT enquiry all comes to you. This is the reply from UTI bank (where my account) staff told me. I enquired to send money to Hostgator Reseller Fees. The monthly fees comes arounnd 20$ which is equal to the transfering charges Rs.1150/-. So I skipped this idea.

 

Try to send one time..

LOL i am not from UTI but better than that well still if u go to the process u will come to know abt the remitance form.


Bending the LAW lol
If law bends u then ? lol

 

With all due regards I would like to ask "bilalinamdar" that if I recieve money through Xoom (Not illegal as I too had contacted the Xoom authorities) and after recieving the money I pay my yearly taxes on it, will the government still consider my transaction as illegal?

All help appreciated.


Al

 

See arvind actaully i too wish that it should be true...But it is not.. You have to show the govt where the money is comming from.. Well lets take and example of a t-e-r-r-i-r-is-t (purposely written wrong) so if they use a paypal to transfer a amount such as 20k to indian guy for his help in organizing a bad thing.. so then ?
well let take and example of paypal why they limit the account when u acess it from other country ? For security.. SECURITY is the word !
Well Tax and security are two main fundas... i do not want to give a link out of a site but well if u really want to Still know more abt Fema act and other thing u should pm me or again post here...
The system can be 100% used for illegal purpose i do not want to give info on that coz i do not support illegal activity. Well what our govt is doing is what they should and they must... Well Just think like this we have a Account of ICICI and we have a Internet banking allowed then we have a facility to send the money to Outside india bank.. Wel let think that ur ID PASS stolen (75% possibilities virus,trojan,spam,scam) now if the guy is from uk usa uae or other country what he will do is flush ur account and transfer all to his...What can Govt do in that case if some one hack and rob u online ? Can't If the UK USA AND UAE ETC say that we will not co-operate in the case than ?
So we can't send money outside without IEC.. well some one said here that we can but well again Time + Money + Inquiry + Headache NOW this is the thing i personally do not want !
Well What i mean to say if u want to make it legal there are many things... to consider... Where ur income is coming from what are u doing online.... Well i would like to share one thing more... Exchange of Outside currency via third party is not allowed... Only authorized exchanger can.. well if u do not understand the last thing of exchange well leave it...

 

With due regards, if I am filling tax on the income that I am generating outside India then that means that I will be showing the tax authorities where the money is coming from (I need to fill forms and there I will declare the name of the companies/websites that I have worked for)

Is it Ok then with the authorities/government then?

Take the example of some of the BPO firms.
They do take payments in foreign currencies and then convert it through an authorised exchanger/banks and then pay the government the TAXES.

So what is wrong if I am converting funds from one currency to another and thereby declaring it and paying taxes.(I am not using the word "remitance" to avoid taxes from the gov)

I guess Paypal too is acting as a money exchanger when we order cheques from it so what's the fuss when "Xoom" does it?Are they not registered money exchangers? They are. So what's the problem?

Although I too support you and the government conditions inposed when it comes to sending funds from India to other countries.


Al

 

Simple logic..
When u pay tax on the income (from the net) no problem.. (It already reveals ur Income sources while submitting the form and return U HAVE TO SHOW)

 

Thanks for clarifying the point.
Now can anyone of you fellows point out as to what sort of forms need to be filled (form numbers) to pay taxes if I am an individual.
(I have a company so the CA takes care of everything but it could be valuable for other individuals)

Anyone!


Al

 

Yes I too awaits answers to arvind's question... Hope i will get the answer from here.