hello dpr's I am frm india and rite now i m doin some article writing work for one of my client....... I dont earn more...jst about 200$/month...due to lack of time....... so i was kinda curious regarding tax issue...becz rite now gov. people had turned tough in terms of rules nd regulation in context of paypal........ some of my questions are : - 1). How to pay tax for earnings from paypal..?. do we need local curator..?.... or some on internet..?.. local curators here r not that much educated when it comes to paypal dealings.... !! they simply dont know nything regarding paypal. 2). wat are the threshold levels of values per month to which if income reaches and then only we have to pay tax. ? 3). OR we have to pay tax on whatever we had earn... no matr even if 100$/month or 50$/month...? it will be great help if u guys help me out....on these.... i have not paid single tax till now..... but wnt to pay it so that dealings get legalized !!! thnks in advance vita-cheers !!
Better you contact any CA (Chartered Accountant) near to you for all clarification regarding this IMO. DON.
Hi Vita, Tax Slab for 2011-12 are as follows in the pic Since you are earning 200$ per month , which means 2400$ per year then you fall in the first slab where tax is NIL so you don't need to pay tax . But if your income is more and falls in any of then other slabs, than you will need show your income proof to your CA and do file your returns and pay tax Above figures are in INR Cheers, Merlin
1. Yes, you need to pay taxes from the money earned in PayPal. If your earnings cross the taxable limit of Rs. 1,80,000 then you need to pay income tax. 2 & 3. No income tax is applicable on all income up to Rs. 1,80,000 per year. (Rs. 1,90,000 for women) You are earning $200/month which is below taxable limit. Add bank interest in this income and deduct investments under section 80C (PPF, life insurance, ELSS), section 80D (Mediclaim insurance) and then calculate your actual tax liability.
gone all the days you went scott free with online earnings. Since paypal collects PAN with every account, there is no way escaping taxes. So be serious and start filing taxes. Consult a CA and he will give you valuable advice. dont be afraid.
So under what category of income, you are filing that income tax? Business or capital gains or what else? The question is to REAL ITR filers not the fake ones who talk much and don't actually do it ! Also, does any one know of an online consultant, he/she has experience with? (Don't advise a local CA again ...have heard of this too much. All know its one of the option) EVEN the thread starter explained that in his point no. 1 !
okk... however i shared time to reply here frm long busy schedule..bsds folks..sorry for late replies.... @nihan-- thx for reply... but i got doubt that if my amount is under taxable levels...then wats d need to do those procedures of addin bank interest and deductin the invesment and all which u listed in last 2 lines....??? @merlin-- ur table was very helpful....i saved that format to my word file....thnx for that !!! @Dumppaypal-- according to the table which merlin gave..my income is less than 2400$ annually so i dont have to pay tax...and unto this day i never paid single tax because i m although earning very low and if i pay tax in this situation there wl be nothing left with me for spending... so its not under any type of business or capital gains...i guess...other thing.....the day i l start to share some more time behind this things..... i m pretty sure to get fall under your "REAL ITR" fillers level...as wl have enough money i to do so.... !! i got suddenly curious because i thought that these earnings are in dollars and we nd to compulsory show em to the IT authorities..irrespective of whatever dime we earn...but merlin made it clear..
You could be earning $200/month but *could* be having large investments in stock markets, bank deposits and insurance sector. You might be owning cars, plots, etc. This kind of stuff affects your income and needs to be shown in Income Tax returns.