Is it necessary to add the PURPOSE CODE in Paypal?

Thanks a ton for sharing this discussion. Well in my opinion, u should follow all the instructions as directed by the Pay pal otherwise it will create hindrance in getting payments from it. Even i had forgot to provide a purpose code initially and after they intimated me, i went back to my account and provided that code and it is generally a security code that will help in the smooth transaction of payments so u should do it as soon as possible. What say?

It is employed by papal as per the rules by reserve bank of india.The history behind this decision is that,long back,many people used their papal accounts to keep all their black money to escape the tax.They would withdraw to their banks when needed.On seeing this,banks insisted to register Customer's pan number so that income tax department is aware of the money in banks and cannot keep black money.Now people started to use money from papal directly as it is accepted by many online purchases.To prevent this,RBI made it compulsory register our pan cards to papal also.By choosing the source of income in papal.the income tax can get information about the type of work involved,as some jobs like selling products involves higher tax..