Recieved a call from Paypal.

[crazy4cs]

And yeah, that guy who said getting money in Saving account doesn't need to bother, WRONG.

If so was the case, every big earner, every big industrialist, every common man would get the money in savings account and no one would pay tax, its not like that.

[flowers]

I have my PAN number on my paypal, but I dont pay a shit as tax for money recieved earned from paypal. Is this going to cause a problem as per RBI guideliness?

Definitely YES!

as per current tax limits if your income is over 2,00,000 INR then you have to pay taxc at 10% from 200,000 to 500,000, then at 20% from 5,00,000 to 10,00,000 and after that 30% beyond 10,00,000.

Also according to Indian Income Tax Act 1961, any payment you receive in your bank account for which you do not declare a traceable source (which you obviously cannot in case of paypal) shall be included as income from other sources.

So according to those limits if you receive over INR 2,00,000 and have no deductable expenditure allowed as per IT from that income, then you are liable to pay tax.

Bdw its definitely alright if you do not pay them tax, they won't do anything but just after the assessment is done for the relevant assessment year they will send you notice that you haven't paid the due tax along with the interest which is 1% per month and penalty of rupees 5000.

Even then you can ignore them and not pay taxes, they won't do anything at all but only seal your bank accounts with your PAN number and after few days you will have some local police officers coming to arrest you if tax due is a bit large amount and they will release you after that once you pay all the tax and penalties (dont forget the extra bribe, our IT deptt. doesnt work without that).

thats it!

[george101]

And yeah, that guy who said getting money in Saving account doesn't need to bother, WRONG.

If so was the case, every big earner, every big industrialist, every common man would get the money in savings account and no one would pay tax, its not like that.

well they normally dont monitor saving back accounts unless you have some 10lakh+ INR deposited in an year.

[AJ Blacklisted]

Sorry for offtopic.../