Some very good news for PayPal users in India. You can now transfer money from your PayPal account to any of your bank account in India directly from the PayPal website.
Earlier, the only option for withdrawing PayPal amount in India was a check that normally took 2-3 weeks for processing. The new e-transfer process should take less than a week.
PayPal has also scrapped the withdrawal fees for electronic transfer if the amount withdrawn is more that Rs 7000 and a nominal Rs 50 for small transfers. Earlier PayPal would charge $5 per transaction irrespective of the amount on the cheque.
To get your money from PayPal to a bank account in India, all you require is your bank account number and the IFSCI code of the bank branch where you have the account – call your bank customer care service and ask for IFSC code -it’s an 11 digit code maintained by The Reserve Bank of India.
The e-transfer facility from PayPal India is available to anyone having an account in HDFC Bank, ICICI Bank, ING VYSYA Bank, Axis Bank (formerly UTI Bank), Standard Chartered Bank, State Bank Of India, Bank Of India, Canara Bank, Union Bank of India, HSBC and Citibank India.
Before you withdraw the amount from PayPal to your Indian Bank account, ensure that name of the bank record and PayPal match character by character else the transaction will not go through and PayPal would also charge a INR 250 processing fee.
PayPal offers another option for Indians who hold a Visa credit card or debit card – you can withdraw funds directly to your Visa branded credit, debit or prepaid card.
Is PayPal Income Taxable in India – If you are earning web income through BlogAds, Text Link Ads, eLance, eBay or any other program where the money is deposited in PayPal, it’s very important that you declare the PayPal money while filing the Tax Returns in India.
Can I remit money to India Using PayPal – When you transfer money from PayPal to India, PayPal would pre-populate the surname field for Bank account holder though you are free to use any First Name. So if you are planning to remit money to some relative who share your surname, it is technically possible.