Dear all,
I am a salaried employee and I file my tax. I have a query which has been bothering me and there has not been a satisfactory answer that I have received which fulfills all the dimensions of my question. Before answering my question, kindly read all aspects of my question and then after proper evaluation of each part, kindly answer.
1. I work here in India and receive a salary as an earning.
2. I have a paypal account with verified credentials which I use for my online international/ domestic shopping via my linked bank or credit card account.
3. I am not any kind of seller of services or products in India or Abroad.
4. I do not have an IE code (IEC).
5. I have no brothers/ sisters/ immediate family members in U.S.
I am supposed to receive some funds from my relatives and friends as gifts in cash. The number of contributors can be somewhere near 50- 60 or maybe more which will be collected by a company (of one of my contributors) and the amount can be equivalent to somewhere US$ 30,000 or more. The amount may not be a single amount of sum but in smaller portions consolidating to the given value over a period of time. My contributor will pay me thru' paypal.
As I have heard that paypal cannot receive personal contributions or be used to remit amount or lumpsum amount exceeding US$ 3000. I am ready to pay the tax associated with the transaction, but how can I receive my money thru' paypal. Will I require an IE code. Since I am not selling any services or products online, I cannot claim that I am selling something. Is there a way to save on the tax, through investments in govt. funds? What will be the documentation implications on me. In US there is no tax on receiving gifts in cash.
I have also heard that there are people who open a company in US with the help of some relative there and then receive those funds as salary.
Let me tell you that I am a novice and hence cannot make a proper judgement hence I am seeking your expert advice. Kindly show me a legal process by which my payments may come thru' paypal without any hassle and that the maount be transferred to my bank account and that there are no problems for me in terms of the Income Tax Dept.
I would appreciate generous answers according to the current scenario in the Indian sphere. The FEMA and FERA implications have made the use of paypal so difficult for the common man. The thieves however know how to get their things done despite the implications. Kindly Help!!
CAclubindia
