Paypal, PAN, and Income Tax please help :(

Hi Friends,
I am new here so forgive me if I make any mistake. I want to clear my some doubts.
I have PayPal account and I have given my PAN card number. I don't have Debit-Credit card associated with my account. I have receive payment like 250$ in different parts from one source. Actually I won this PaPal cash. But now I don't have any thing to prove it to Incometax department that they were transfered to me as a prize. Now I want to buy PSP but I am scared that if I buy it, will IT department do inquiry on me? Will they contact me and ask me everything? Will they ask me for source of income and proof of it? Whether I will have to pay tax for buying PSP? If yes thn how and where?
Please cleary my all doubts..
Thanks.

 

Go buy your PSP first if thats your dream! You need not worry about IT and other things unless you do large number of transactions. If you are afraid i suggest go talk to a CA or auditor in your area. Give him about a minimum of Rs 1500-2000 and he can take care of everything for you and trust me he will save a lot of money in paying taxes. There are so many things in IT and its only a pro auditors can understand it.

If you are asked for proof of income, you should take a printout of paypal transactions (download under history > reports) and you can show it to them. Just talk to a CA! you will know!

 

Thanks, but now problem is ebay dont support paypal anymore. Do you know any other site like ebay and Amazon that ship to India?

 

Well, technically there is no actual "money" involved in PayPal accounts. PayPal is just a running total of how much one account was given from another and vice versa. It isn't until someone "cashes out" that money is actually "made and moved." PayPal is not a bank. Thus, their accounts are not federally insured, etc.

 

I am surprised at your statement... as Paypal itself is ebay's baby!
How can it not support its own subsidiary?

Regards,

RightMan

 

I don't think for $250 IT department will do inquiry

 

You have to pay tax if your earnings goes beyond tax limits.

 

Yup buddy...Paypal is no more allowed by ebay in India. They now accept only Paisapay

 

Well, Thanks everyone for your help

 

Then better withdraw your money in your Bank account and then purchase it directly from a SHOP !

 

I don't have bank account or credit card. I have won paypal money from one contest which now I want to use. Do you know any Indian shop accepting paypal?

 

I don't think any Indian shop accept paypal. You can order a check from paypal.
BTW why don't you open a zero balance bank account. Nowadays banks are pretty quick in opening a account.

 

I don't think there's gonna be any problem will Income Tax, just go ahead and buy your PSP.