Holding a Virtual US bank account

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If you're an individual in India earning USD from affiliate marketing, opening a virtual US bank account with services like Payoneer is common. You'll need to declare the balance in this account in your Income Tax Return (ITR) under the Foreign Assets schedule, even if it's a virtual account. However, if the account balance is zero on March 31st of the previous year, no declaration is necessary.

Ashish Agarwal

Ashish Agarwal (Querist)
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26 September 2024 I am doing affiliate marketing as an individual for Amazon USA from India for which they pay me in USD. For the purposes of receiving those funds, I plan to open a VIRTUAL US account with Payoneer. I will receive funds in my payoneer account in USD and thereafter they will transfer that money , on request, to my bank account in india in INR. My question is whether I need to declare this bank account anywhere? Like is there any technical requirement I need to fulfill before I open such an account or while I am holding that account? Does this have anything to do witrh FATCA? I do not have a GSTIN as my turnover is much below 20 lacs. And I am just an individual doing this as a side hustle.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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26 September 2024 Foreign Assets (‘FA’) schedule in the ITR form seeks to incorporate the details of assets which a taxpayer holds outside India. Disclose the balance in USD in such account.

Ashish Agarwal

Ashish Agarwal (Querist)
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26 September 2024 Thank you sir. But in case I have withdrawn all the funds to my bank account in India and the balance this account on 31st March of the previous year is zero? Do I still have to declare this account in the ITR?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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27 September 2024 No need to declare in such a case.

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