Limitation in withdrawal of Funds from Indian PayPal Accounts. Why?
Posted on : 28-07-2010 | By : admin | In : Money, Online
Tags: Indian PayPal users, paypal limitation, PayPal withdrawal
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After, somehow getting past a stage of discord early this year and now we’re back in the same boat. Now, I’m not sure how we’re at fault by being PayPal account holders but it seems we’re being put through this financial rigmarole time and again. Will someone please realize that there are people who depend on PayPal for every dollar earned?
We are simple people who aren’t cheating anyone, so please spare us. It’s great that we got a day’s warning before we are prevented from withdrawing funds electronically but it really makes no difference. For people like me, who’re always short of money, it’s okay, but what about businesses that depend on daily PayPal payments?
It also appears that Paypal won’t allow Indian account holders to make payments online from money they’ve received for services rendered or goods delivered. Now, I’m sure that too is going to hurt a lot of people.
What do you want us to do? Options:
• Should we sign a petition?
• Should we switch to another service provider?
• Should we be forced to resort to asking for checks?
It’s getting a little tiring now because asking for checks is almost an extinct practice and PayPal users had to resort to it back until 2007. So, now after almost 3 years, we’re back to where we started. It’s almost as though we’re collectively being held responsible for financial discrepancies.
PayPal checks take roughly 2 weeks or more to reach us, and then we deposit them, and it takes another week to be encashed. Some banks don’t support this PayPal check system. Others take extremely long to allow the PayPal check to go through. In addition to this, we’re to pay charges because banks doing us a favor. To add to it, I have no idea if the mailing system works well, and who’s responsible if a PayPal check is misplaced or not honored by a bank.
In response to:
“In accordance with regulatory instructions, we would like to notify you about a change in our withdrawal functionality in India starting on August 1, 2010. At present you can request for either an electronic or cheque withdrawal of funds from your PayPal account if you are an India user.
“From July 29, 2010 onwards, you will only be able to request for a cheque withdrawal of funds from your PayPal account.
While we are working hard to restore the electronic withdrawal service, in the meantime, we are bringing this matter to your attention so that you can plan your future withdrawal activities accordingly.
To request for a cheque withdrawal:
1. Log into your PayPal account, click on ‘Withdraw’.
2. Click on the ‘Request a cheque from PayPal’ link.
3. Enter the withdrawal amount and select your mailing address, then click ‘Continue’.
4. Click ‘Submit’ to confirm your request.
In order to help you with this change and until further notice, we will refund the $5 USD cheque withdrawal fee to you for cheque withdrawals made on July 29, 2010 onwards.
For any questions, please log into your PayPal account and click ‘Contact Us’ at the bottom of the page.
We apologise for any inconvenience caused from this change in our withdrawal functionality. We will provide ongoing updates to you here. We thank you for your attention and patience as we work tirelessly to resolve this situation as quickly as possible.
Thank you,
The PayPal Asia Team”
hahaha, you dont pay even a single penny in Personal Taxes and you say you are not cheating, what can be more preposterous than that,
you take 6 vacations a year, ppl dont even get ONE in years, WHY ? just because you dont have to pay taxes, and they have to.
want to know why PayPal has set this new guidelines ? you wont beleive it, but it is because i had sent mail to all top income tax authorities a month back, below is the text of the mail i had sent
“Hi,
I will make this very short.
Why is that the Income Tax department not charging any tax on Indian Citizens who earn online using PayPal?
I earn around 3 lakhs and pay my taxes, but these people earn 2 to 3 times more and YET do not pay a single Rupee in taxes.
I would request you that please look into this issue and have some mechanism to tax these transactions.
These people eventually transfer money from PayPal to Indian Banks such as ICICI, so I don’t think tracking such transactions would be difficult.
Given the present scenario, I think total earnings of this specific group of people may be running in hundreds of crores, so it’s a big loss if these people don’t pay their taxes.”
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I did not get a reply, but looking at this new move by PayPal, i think they have heard my plea. thanks to them.
i would recommend you would encourage indian citizens to pay, rather than asking them to evade taxes and blame the system,
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You’re still not getting it. What I had explained to you has fully been misconstrued because of your inner anger.
People like me can’t evade taxes because we transfer each and every dollar to an Indian bank account like ICICI. As such, every rupee is accounted for.
The problem arises when people don’t transfer this money and use it to make payments, pay for services, and buy stuff online. The Indian government still has no way to control such spending, and that’s where the real problem lies.
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Mr Suhas Mullick doesn’t get the point.
No.1 – Transfering money to bank accounts is perfectly legal, which in all likelihood is the best proof for the Income Tax dept.
No.2. The income tax dept. is way ahead of you, Mr. Mullick. They know what’s exactly going on and who they need to lay their hands on. They certainly haven’t waited for your letter to keep themseves informed.
No. 3. What makes you think that all Paypal users are cheats. The hard work we put in is nothing compared to a regular 9-5 job. Besides, who told you we don’t pay taxes and what makes you think paypal users are all multi-millionaires in the first place.
You are certainly barking up the wrong tree Mr. Mullick.
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David, all the facts that you’ve just pointed out to are accurate, and I guess people have misconceptions about those earning via PayPal.
It just doesn’t get through to some people that though PayPal earnings can be manipulated, there are a few honest guns out there for whom every rupee is white money because there’s no scope of hiding any of it.
I think people simply assume you can hide loads of cash in PayPal, and it’s some secret money keeping source.
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Suhas has lost it completely. Anything that hits the bank is taxable because all international transfers are through RBI.
Services like xoom, western union, remit2india etc are illegal for professional money as they transfer cash. They can only be used to send money to relatives.
Suhas, get your facts right dude. You earn 3 lakhs so you really don’t deserve a vacation whether you pay taxes or not. You can do much more if you stop writing emails to IT department and posting unwanted comments on blogs. Stop whining and work hard!!!
Mayur Sabharwal´s last blog ..PayPal stops online transfer for Indians
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I am sorry to all paypal users. I think i was just jealous of people who have more money than me. i shall try to reform,
thank you for your suggestions.
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