We had reported earlier that PayPal was staying in India despite RBI (Reserve Bank Of India) guidelines. Today we were informed yet another notification released by RBI for all PayPal users in India. These are some guidelines showcased by RBI to all PayPal account users, in order to continue receive export- related payments and withdraw of money.
The guidelines are:
- A purpose code related to the majority of commercial activities for export related payments.
- A PAN or Permanent Account Number
- A Bank Account in India (if not previously added)
Following are some steps to add a purpose code, PAN and Bank Account:
- Log onto your PayPal account at www.paypal.com/in
- You will find prompts on the top of ‘My Account‘ asking you to ‘Add‘ PAN, purpose code and bank account.
- Click on the ‘Add‘ links and follow the instructions
These new details will ensure that no income via paypal goes unaccounted for by the tax sleuths in India. The freelancer community which was freely gaining on tax savings prior to this guideline will now automatically have all its earnings associated to its PAN card.