Does paypal report you??

[sandeep410]

Does paypal report the amount of money you got through paypal to governement officials.
I heard there is a threshold value above which they report you. Is that true??

 

[TheHumanBot]

RBI have watchman dogs and they know how much you make. RBI control paypal. no one has to report anything they already know. Thresholds are there on amount how much you can receive and to send you need credit card attached to your paypal.

 

[krishnandu.sarkar]

Yeah right. Money doesn't flows away like that. RBI has every information of how much money is where and all. No one need to inform anyone.

Wherever you keep your money, that institution is controlled by RBI itself.

All the persons who are making money from legal source are tracked by their PAN Card. And the source will not issue you money without PAN Card, because otherwise they will have to pay tax.

So unless you are making illegal income through some other means, you, your money, everything is tracked

 

[arijitsinha]

May be offtopic, but can i make a paypal account of US? I tried it, it asked for some SSN and bank account numbers. And i gave same fake info. Will there be any problem with that account?

 

[krishnandu.sarkar]

Yes. To activate the a/c, paypal will transfer two small amount to those a/c you provided, and you need to enter the exact amount and then your a/c will be activated.

Man, if there were ways, several indians would have US Paypal A/c easily

Even if you manage to make one, how would you bring the money here in India without getting it noticed?

SSN = Social Security Number of US, it's something like Aadhar Card which is used to track each and every person.

 

[TheHumanBot]

Online service is available $40 for USA Verified Paypal account. i won't tell which one or name anything as it's illegal and i don't want you to get in any trouble.
if you can post what exactly you are trying to do i might have some solution for it.

 

[sandeep410]

So if some1 sends you money is that taxable??

 

[krishnandu.sarkar]

So if some1 sends you money is that taxable??

Yes it is..!! Depends on many settings and amount though.

 

[sandeep410]

So if lot of ppl send me around 50k i am supposed to pay tax for all money i receive.

 

[krishnandu.sarkar]

Yes. Your paypal is linked to your PAN Card. Remember registering your PAN Card on paypal?

Now even if you manage to withdraw the amount different banks, RBI has the information how much amount you received.

Remember, setting the reason of payment in paypal? RBI also has track of what you do, so that peoples send you money on Paypal.

Based on those information you'll be charged.

 

[arijitsinha]

Online service is available $40 for USA Verified Paypal account. i won't tell which one or name anything as it's illegal and i don't want you to get in any trouble.
if you can post what exactly you are trying to do i might have some solution for it.

I want to hold dollars in accounts. Main purpose will be someone sends me dollar, i will use that amount in buying something or to send someone else. The paypal conversion charges, paypal fees and unable to send payment as gift , for these reasons there are some losses when i try to do from my indian account

 

[sandeep410]

well i didnt pay last year and RBI didnt knew about it.

 

[krishnandu.sarkar]

well i didnt pay last year and RBI didnt knew about it.

1. Read the policies.
2. Depends on what's your category. Like mine is software consulting
3. Depends on amount
4. Depends on RBI too.

Now, if you have managed exempted tax from RBI, it doesn't means RBI doesn't knows it. It's just that RBI is busy with more amount of frauds.

And one thing, you don't pay tax like paying bill, it's automatically deducted.

1. Source of income (e.g. company) automatically deducts your tax.
2. If not, banks have that information and banks does that for you

So if you are into tax level, it'll be by default deducted by any means.

Again, remember, paypal is not only dependent on amount, but also the category you have set.

 

[sandeep410]

Mine i have put R&D.
Last year i was in a job and my job salary was taxable so i was paying tax at source of income.
Also i made more money by freelancing than i get from my job annually. Now this money is not taxed. It wasnt taxed by my company or by my bank.

 

[TheHumanBot]

^ it depends on you to pay or not like other taxes. i have been withdrawing money from paypal to bank since last 8 years not a single penny paid to govt.
actually i don't know how to pay taxes for this type of transactions

 

[xtremevicky]

Small amounts <10L are not scrutinized much.

RBI does track all the money you receive, its just that you are not relevant to them right now.