Should i have to disclose the source of my earnings to the bank

[preetksgill]

Dear Startrade

Thankyou for the the information you have shared. But i wish to you to suggest a way so that i can withdraw my money and go unnoticed from the IT. Unnoticed means that i want to pay the tax but they should not fine me for margin trading and also what is the limit i can withdraw from paypal after which paypal will let the IT know about my transactions.

Waiting for you reply.

for that solution trade with brokers that provide atm cards, like ibfx and others.

u could also use ur paypal funds to fund payoneer cards or other virt ual cards online and then use them from any ATM

I am yet to see an ATM talking to IT dept personally.

 

[supaTrade]

Dear Sachin & preetksgill,

Please refrain from such talk. What you two are discussing is called MONEY LAUNDERING. Its a crime for your info.

If you dont get caught, its fine. If you do, you are in deep s**t. The sentence is jail for minimum 5 years.

Think again plz.

Also many questions to ask.

1) suppose i get to open an account in dubai and have a friend working in dubai to deposit some money into my dubai account and then i use wire transfer to transfer money from my dubai account to my trading account in U.S. This way i am not using the LRS. so im not breaking any rules. What do you people think about this idea?:!


2)If i withdraw the investment into the bank account, will the income tax/bank ask me where the money has come from?And if they ask me then what should be my legally correct answer? I haven't withdrawn any money yet.

3)Also if i withdraw USD 2000 every month into my bank account through paypal will i have to show the source of money comming into my paypal account to the income tax.

for that solution trade with brokers that provide atm cards, like ibfx and others.

u could also use ur paypal funds to fund payoneer cards or other virt ual cards online and then use them from any ATM

I am yet to see an ATM talking to IT dept personally.

 

[vetmalar]

i saw in paypal site ....deposit & withdrawal from indian account is not avilable now...check it

 

[praveenpious]

i saw in paypal site ....deposit & withdrawal from indian account is not avilable now...check it

Withdrawal of amounts from PP to Indian bank accounts is still working fine.

 

[fiction901]

Hi Sachin, this is rahul

I am newbie trader wanting to open an a/c with Oanda since it offers paypal facilities which makes inward remittance easier since the amt can be withdrawn from paypal to local bank.

I would request you to post your experience in using paypal since it had suspended inward remittance to personnel a/c.

Also if any idea about moneybooker, liberty reserve in India.

Kindly guide me.

 

[4xpipcounter]

Sachin, in lieu of what supatrade just mentioned, this is why we hire accountants to take care of the tax end for us. I look for all the shortcuts I can, and try to save as much money on taxes as I can. If my accountant suggests something or gives me advice, it is all in writing, so he is liable if something goes wrong.

Also, if you are a successful trader, then what you have left over after taxes should fortify a substantial living, so the tax issue should be mute.

Dear Sachin & preetksgill,

Please refrain from such talk. What you two are discussing is called MONEY LAUNDERING. Its a crime for your info.

If you dont get caught, its fine. If you do, you are in deep s**t. The sentence is jail for minimum 5 years.

Think again plz.

 

[veluri1967]

If bank desirous to know the source, you are obliged to disclose the source whether it is a rupee deposit or a million, because Banks are proxy for Taxation and Law Enforcement Departments to keep an eye on cash flows.

Banks are obliged to deal in only legally viable cash or its equivalent. To make sure its legal, they have a right to confirm the source of earnings. Whether they do it or not, its a different issue altogether.

 

[roney]

Dear Sachin,

There are two solutions for this problem

1.Tell the bank/tax authorities that it is your earnings from investments in shares abroad.There are above 120 financial instruments approved by RBI (except forex and margin trade) where a resident Indian can invest upto 2lakh $ (shares,equities,futures,options,property etc) under LRS.I have withdrawn to by hdfc a/c and no questions were asked.

2.There is an Indian fx broker approved by RBI called fxcentral (the first Indian broker approved by RBI), having offices in Mumbai and bangalore.You can deposit in rupees from axis bank where the broker holds the account.Eg If you want to transfer 1000$ to your trading account,deposit 45000 rs approximately (as per exchange rate) to the account of the broker in axis bank.So there is no question of wire transfer.No violation of RBI.

The particular broker is an ECN broker and has a variable spread of 2.5-3.5 spreads with no commission.Slippage as they claim is 0 (maximum 1% in worst case scenario)

Anyways,Need to check out on the one as I have not opened a live a/c with them as yet.just spoken over phone..

regards
roney

 

[preetksgill]

Start trading with fxcentral, since they have NBFC license the process becomes 100% transparent and legit.