How to encash cheque received in U.S dollars?

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This query is : Resolved

Mukesh Agarwal (Querist)

03 April 2008 Sir if a person receives a cheque or DD from a prvate online payment processor like paypal favouring in his/her name, then how to encash the same. is that possible to encah it through a bank a/c. if so whether forex will beattracted or RBI approval necessary.. pls clarify me.,

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)

03 April 2008 Sent to your banker for collection. Take a photocopy of the cheque so sent for collection and keep it for your records together with the particulars of receipt including the identity of the payee. If it is in the nature of income earned include it in your income tax return.

R.V.RAO

R.V.RAO (Expert)

03 April 2008 THE COVERING LETTER OR EMAIL SENT BY PAY
PAL OR OTHER PAYER ALONG WITH DETAILS OF YOUR PAYMENTS AND THE CHEQUE OR D.D. RECEIVED BY YOU MAY BE SUBMITTED TO YOUR BANKER AND RETAIN A PHOTOCOPY OF ALL DTAILS WITH YOU TO USE IN YOUR IT RETURN FILING IF THE INCOME IS SUCH THAT THE SAME ATTRACTS TAX.
YOU NEED NOT WRITE OR INFORM RBI OR ANYBODY ELSE.
R.V.RAO

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