Does anyone pay tax (income) for the paypal transfering or other related online business that you do ? How can we store the details of online business ?
From my understanding, you need to declare income taxes for all income which you earn even if it just remains in paypal. The only issue is where do you declare the income at, either in India or in the US.
is it so? why we want to declare the income that remains in paypal? I think we only need to show the money we receive at our hands!
Income tax as far as I learnt is not about getting the money in your physical hands but it is earned income. Keeping it in Paypal account does not mean that you have not earned that income, it just means that you have not withdrawn it to your local bank account. How did you derived the balance in your account in the first place ? If you put it there by funding from your bank account then it is not earned but if you sold something then that would be earned income. Whether you decide to keep it in Paypal, reinvest it by spending it on some other businesses or withdrawing the money, does not make it a non-income. Of course, if you are a business then the profit you make from each sale or service would be taxable, ie you would be able to deduct the expenditures which was spend to incur that income. There is a reason why they call it INCOME Tax and not BALANCE Tax. http://en.wikipedia.org/wiki/Income_tax As to why you want to declare the income, it is because the law requires you to do so.
Like I said, declaration for income tax is necessary but it all depends on where you need to declare them in. Just to be sure, check with your Income Tax Department http://www.incometaxindia.gov.in/contactus.asp
if my total income is less than 1,00,000 in paypal whether I have to file tax returns for that income?
I am not sure about the laws in India but over here in Singapore, even if you earn only $1 in that year, you need to declare it. Of course, whether you need to pay tax or not is another issue.
u have to declare it for your income tax but the main problem is that , paypal is us company and they follow us rules and law . India and us law are different , so we can't suggest to you fir it for this plz concern to the income tax department at there website : www.incometaxindia.gov.in or u can confirm with other guys here: www.legalserviceindia.com/income Tax/income_tax.htm
1. Income Tax is to be paid in the country from where the business is being conducted. Its immaterial whether the funds are in paypal or your bank account. 2. Income tax is paid on TOTAL income of the person. So take your salary and other earnings into account before filing tax return. 3. If you are a residing in the US on work permit, you are NOT entitled to own any sole proprietory business (individual owned website fall into this category) and any earnigs from them is UNLAWFUL however small. 2. Business
I think I do not want to file an income tax return for financial year 2006-07 as my income was less than Rs1,00,000
You earn 1,00,000 or more, you are entitle to pay taxes or not, it's always better to declare your earning. If it goes unnoticed then everythings fine, else it might be a problem. Also when you want any gov work, bank/loan transactions done, if you have your income tax files, the process becomes all the more easier. Hope this helps. ~G
Thing is how to show our little earnings? Like forum posting works and all. We are getting check from paypal when the balance is 150. Now should we show 150$ as an income or should we provide complete details?