Today, we noticed another update regarding Paypal’s Indian operations. Now, Paypal is asking for PAN (permanent account number) to all Indian users. The PAN, a 10-digit alphanumeric number, is issued by Income Tax department of India.
We expect that RBI and other Indian regulators have instructed Paypal to ask for this information, so that the authorities can track the money coming to India.
These measures are, of course, necessary for the national security to avoid illegal transfer of money to India.
In past, Paypal had to disable direct money transfer to Indian bank accounts after getting red signals from the RBI, the Reserve Bank of India. Later, Paypal enabled this service for users with a mandatory requirement of “purpose code”.
PayPal has integrated the PAN Number requirement in the PayPal Account but their system is not able to validate or accept the VALID pan number. I have tried this with Company PAN Number.
True. Without validation, it makes little sense to provide PAN details. Maybe they do have a system to verify at the backend. Are the payments getting through? I heard banks are still sending back payments to Paypal.
I withdrew my PayPal money earned during Financial year 2009-10 in May 2010. So, am i supposed to pay tax on that money right now(i mean before July 31st 2010) or during the assessment of this financial year(2010-11), that is, next year.
Frankly, if i didn’t receive any money in the bank, should i be required to pay tax on that ? I withdrew the money this year (may 2010) so logically, i should pay tax on that money during filing return next year. Please clear my doubt.