19 September 2015
I crossed limit of maintaining 10,000 paytm cash in a month on paytm.com. I then submitted my KYC documents to upgrade my wallet and Now I have 15000 in my wallet on paytm.com. My query is whether I need to disclose about balance lying in my IT Return or not? If yes, by which section is it governed and what are complications if not disclosed.
19 September 2015
Is it VIRTUAL money or REAL one?
As far as I use paytm, it is virtual money and not the real one.
A similar query is raised about 01. credit points earned through credit card purchase and its entitlement 02. the limit granted by credit card companies.
19 September 2015
In fact you have answered your own query through your DISCLOSURE. Isn't it? If you know that it is VIRTUAL and not REAL, where comes the question of accounting the same?
The question of passing the entry might arise if at all you transfer the same to your bank account at 4% charges, isn't it?
19 September 2015
Have a look at this thread: https://www.quora.com/What-exactly-is-Paytm-cash-or-Paytm-money-RBI-has-to-be-the-regulator-for-virtual-money-too-but-they-seem-to-be-blank-about-this-question-at-the-moment-so-what-is-the-resort-right-now
19 September 2015
Thank you for sharing the link although No need to go through any link so long as you are conceptually CLEAR about your answer viz. Your 15000 balance limit is VIRTUAL money.
If virtual : no need to disclose If actual : disclose in ITR.
19 September 2015
On the link I've provided you, it says it is real money as wallet is loaded using bank account. I have recd. it from my friends and relatives. It is not loaded from bank account of mine. So what's exactly the nature? It is bit confusing
19 September 2015
It need not be disclosed. The account is neither in the nature of SB nr Current Account. Also, what would you give in the field of IFSC code & A/c no ? So, by default, govt. wants to know how many SB/CA you hold.
As CA John Abraham Austin ACA has rightly pointed out : it is neither in the nature of SB nor Current account.
Let me add : nor even in the nature of Current Asset.
e wallet is in the form of entitlement. It entitles you to buy through paytm. It is NOT the balance standing to your credit in the books of paytm.
Just to take the discussion further, can you verify from your friends and relatives if their respective bank accounts are debited with the amount they transferred to you? (That might resolve the confusing AIR)
Let me add one small example of good old days.....
In celebration time, functions etc...people used to give GIFT vouchers of BANKs worth say INR 100, 500, 1000 etc. For this, the buyer (Donor) has had actually paid that mush amount to respective bank..... and then obviously, the donee had to account for the same because it was real balance (Subject to, however, expiry date)
CAclubindia
