Paypal transactions

[descorpio]

I am doing quite a lot of transactions using paypal and withdraw the funds to my Indian bank account. I want to know whether this amount is subject for tax payment?

 

[cogbuddy]

Nothing like that untill your Bank reveals such transaction details IT ppl also there is a Limit for every person to pay the tax if you exceed that income limit you need to pay tax.But no one 'll look after the small online money transfers

 

[andrew25]

I am not sure about India, however from the information that I know is that they are subjected to Income tax and PayPal earnings has to be disclosed since adsense earnings are taxable.

 

[jamesb]

I am in a similar situation as I get most of my income through Paypal. Officially I should declare my it on my taxes every year however I don't. Paypal does not give the information to the local authorities however your local bank might.

 

[Mockingbird]

I don't thnk that banks give that information short of a supeona. I doubt they have the time or the manpower to monitor every single persons transactions looking for pay pal additions, and even then they have no way to know what the nature of the transaction was

 

[jamesb]

They might now know what the nature of the transaction was but it can be classified as income. There are so many transactions out there that it would indeed be nearly impossible to track every single one of them.

 

[crimson]

I think all incomes are subjected to taxes, if paypal discloses this, go to your bank they will explain where your taxes are from you bank account.

 

[jamesb]

All declared income is subject to tax but if you don't declare your income then there is no need to pay any tax. Obviously if you get caught then you can be in a lot of trouble. I am not sure how your bank would help you with tax explanation??

 

[SysOp]

As already explained well here, all income is subject to TAX, I don't know how the banks in India handles incomming transfers, anyway, if the TAX authorities make a investigation on you they will ask question to every single transaction on your bank account.


If you have a high volume / huge amount of money you should consider to make a legal offshore setup where it is possible to avoid any troubles with the tax authorities. This also applies for all other countries for instant in Europe.

 

[heather]

Why would you try to avoid your responsibilities as a citizen, anyway? It is not worth it to my conscience. Besides, who would pay for the roads and police if good taxpaying citizens don't?

 

[goldentalk]

I think it depends on the amount whether its a huge one or just plain unnoticeable. Because if its a huge one, you should have a valid source of its generation or you might land in trouble.

 

[rajiu]

I think you have a certain limit for which you are exempt from tax. If you go beyond the limit, then you are likely to pay the tax. please check on the internet for this type of information

 

[Spinat]

ehhh, what is this about... looks like a conversation without topic starter?Also this should belong in the PayPal forum.... man where is the Admin "help"



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[subhakars]

Paypal transactions


Hi,


Yes, the funds you receive from Paypal are also treated as your income. So these earnings are also liable for income tax. However you have to disclose this income in your tax statement. If the amount is more, you might have to worry about that.