Hello
I am an Indian citizen & run a semi-drop shipping business.
The details are:
I deposited 10 lakh through cheque/cash into my Indian savings bank account (PAN not submitted during account opening.Only form 60 submitted).This money was boroughed from several relatives.
I then deposit this amount to a 'Foreign online account' using my banks debit card (Billed as purchase).All my business activities are carried out using this 'Foreign online account'
In about a month,i make a profit of about foreign currency equivalent of 2 lakh.
I then withdraw 10 lakh from this foreign account back to my Indian debit card (Billed as merchant refund).The 2 lakh profit is NOT withdrawn.................In short technically,it looks like a purchase of 10 lakh & a merchant refund of 10 lakh (every month) & am hence not making any profits.The money just keeps jumping between the Indian & foreign account (this cycle repeats every month).
Hence,my question is can i get slapped by an Income tax notice? If yes,then how do i proceed?
Menu
Income tax on my online drop-shipping business.
you're talking about what kind of Foreign online account ? If this bank is not asking for your PAN number then you're safe. but you have to pay tax on deposit of 10 lacs(cash deposit ) as you're saying it has been borrwored from many sources then online transfer proof will be fine IT depatment will take care and you don't need to pay tax .
Thank you for the quick response Saurabh.
The foreign bank account is "Neteller" https://www.neteller.com/ which is actually just an online account which can be opened by anyone.
Actually i am not worried about the initial deposit of 10 lakh (done using cash/check).I am more concerned about the aftermath that is purchase of 10 lakh & merchant refund of 10 lakh.This purchase/refund thing repeats every month.
Should i be worried?
Also,my bank is not asking for PAN.
Recent Topic
- Return filing for intervening period upto date of
- EPF Withdrawal taxation
- While e filing otp not generating
- INCOME FROM CLOSING OF NSS -1992 -EXEMPT UNDER W
- GPF AND COMMUTED PENSION RECEIVED
- How do I choose the correct trademark class? Can I
- Error in totalling salary amount in AIS
- Client consent under DPDPA: Is client sharing PAN,
- TDS MISMATCH
- Rebate on other income even if LTCG is above my 12
Related Topics
CAclubindia
