ways to avoid paying income taxes
By roger_banger
@roger_banger (187)
India
June 19, 2010 1:55am CST
well i have been thinking about this for a long time,as,i really want to know one thing that now that paypal nows needs your pan number to get registered,infact it has been made mandatory,so,me now being a student ,wont making a paypal account now would make me eligible for income tax monitoring by the govt,so it safe right now to make a paypal account right now,as,i have been advised against it by many people!
3 responses
@sarath49 (761)
• India
20 Jun 10
well if you are worried about taxes then put them in fixed deposits or mutual funds or share market you wont have to worry or just make payment to paypal less tahn 10000 rs and as 7000 rs is the maximum free transfer supported by paypal so you dont have to bring or extra money.
@benhail10000 (121)
• India
19 Jun 10
no, the government may monitor your income tax but I dont think they will arrest you. In my country, india the people whose salaries are below rupees 10000(around 250 dollars) need not pay income tax. so it depends on how much you are earning. I may be wrong about the amount but i am sure the government wont harass you. and registering in paypal does not create any problems. I havent faced any regarding paypal.
@zralte (4178)
• India
19 Jun 10
If you want to earn online, then I would suggest you have a paypal account. Yes, you require PAN to have paypal account. I will not worry too much about it in your case. You are a student, therefore, have no other income. If you can earn more than Rs. 16,000 per month online, then only you will be eligible to pay Income Tax. And if you can make that much in a month, by all means, pay the taxes.
It is usually misconception that if you registered and have PAN, government will keep track of your income and harass you. True to a point that they will try to keep track of your income, but not necessarily harass you. And in any case, you must have a proof that you have no other income. So, there's no need to worry about that.
If you are lucky enough to earn more than the Income Tax cut off, then you can do lots of things to avoid paying income tax, like investing in some government approved investments or buy life insurance , etc.