Sherri Numbers (Not Applicable) 22 February 2015

Rules regarding income via PayPal

I possess a Canadian PayPal account which is credited with $350 on a monthly basis. In a recent news story, I read that all Indian PayPal account holders have to transfer any credited money to their bank accounts within 7 days of the transaction. I happen to stay in India for over 180 days which, I believe, is the threshold after which Income Tax is charged. Is there any bindings on residents of India with Canadian nationality to credit the money within 7 days? Also, I have not linked my Indian bank account to the PayPal account. Is that necessary?

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T. Kalaiselvan, Advocate (Advocate) 25 February 2015

You may consult the local consultant in person, discuss your issues at length and get all your issues clarified, so that your personal details do not get publicised in such social networking portals like this for the fear of theft of personal data.

(Guest)

Irrespective of whether you have not linked your Indian bank account with the PayPal, proper accounting of income and payment of tax to be shown through IT return is the main criteria. If tax is not paid in Canada, you will have to account for income and pay tax in India. The question arises, whether you have paid the tax, if due, or not on your earnings, either in Canada, or India.