eLagaan Blog

eLagaan releases detailed purpose codes for export transactions. These can be used while initiating withdrawals from Paypal account or wherever the purpose codes are required to be furnished.

Paypal in their blog today announced new bank withdrawal instructions for their customers in India.
"As I indicated in my earlier blog post, we are making changes to comply with Indian regulations for settlements for exports of goods and services. In order to facilitate this process, PayPal will be suspending new withdrawals on March 1, 2010. We expect to resume the service on March 3rd. When you select the ‘Withdraw Funds’ option on your PayPal account after March 3rd, we will ask you to fill out a new field entitled ‘Purpose Code’. This information is required under the laws of India in order to identify the nature of cross-border merchant transactions."

What is Purpose Code?
Purpose codes are unique codes used by your bankers to furnish various information to Reserve Bank of India. You donot need any registration for purpose codes and they are pre-defined. For any international business transactions which mandates a purpose code, the same should be specified.

When is Purpose code needed?
Whenever you receive money at your Bank in India, your Bankers will require a purpose code to be associated, if the money received is for a international commercial transaction. Only after identifying the purpose code, the banker can credit the amount to your account. Since the bankers are not aware of the purpose for which the money is received, you should provide the purpose for the same.

You can check out details of various purpose codes here. Please confirm with your bankers once before actually using the same.Prepare and File your Taxes Online for FREE, visit elagaan.com

eLagaan announces special package for getting export code to get your money from Paypal.

INDIVIDUALS can also get an export code.

As many of you may be aware that PayPal recently announced that all the Business owners need to have an export code to withdraw money (see below).

To support our users on this issue we have created a special page for information on IEC (Import Export Code) here. Also noticeable is the detailed IEC FAQ.

Here is a small presentation on the subject.

Get Your Import Export Code (IEC) for IndiaView more presentations from eLagaan Income Tax India.


Here is what we have from Paypal's recently announced in their blog:
"I’m pleased to tell you that the RBI has now allowed us to resume bank withdrawals for settlements for exports of goods and services. We are currently making changes to comply with Indian regulations for settlements for exports of goods and services, and we anticipate that as of Wednesday, March 3rd, we will be able to resume the bank withdrawal service. As part of the changes, you will be required to fill out a new field entitled ‘Export Code’ when you request a withdrawal. This information is required under the current laws of India in order to identify the nature of cross-border merchant transactions. On Monday, March 1st, we will be back in touch with specific instructions on how you can move your money into your bank account. I will be posting another blog then. I’d like to thank the RBI for working with us to get this addressed. We know this is an inconvenience to you and we appreciate your patience. Moving forward, the RBI has told us that PayPal needs specific approvals to allow personal inward remittances to India, which we currently do not have. Until we get these approvals, personal payments into India will remain suspended. However, if you are an exporter, you will continue to be able to use the PayPal service for payments of goods and services. In fact, with the changes we are making to our system, PayPal is now set to be a more powerful engine for exporters in India. With purpose codes for export transactions and FIRCs (Foreign Inward Remittance Certificates), you should now be able to get the export related benefits you seek."

Click here to get your export code for Paypal in just few clicks.
For more details on import export code, checkout our IEC page or IEC FAQs.Prepare and File your Taxes Online for FREE, visit elagaan.com

India has been looking forward to a progressive budget after recent recession to boost the economy and control inflation. This year budget can be term as Populist as many stimulus has been rolled back. But it has more of Greens and less of Reds, so relax and donot get tensed.

For Individuals:
* The basic exemption slab has not been changed and kept at existing Rs.1.6 Lacs
* Tax slabs has been changed to provide relief to middle and high income earners. The new tax slabs are:
# upto 1.6 Lacs - NIL
# 1.6 to 5 Lacs - 10%
# 5 to 8 Lacs - 20%
# Above 8 Lacs - 30%

* Additional Deduction of Rs.20,000/- is provided u/s 80C (in addition to existing Rs.1 Lac) for investments in Long term infrastructure bonds as notified by Central Government bonds
* Ambit of deductions in respect of contributions to Health insurance schemes has been widened to include Central Government Health Schemes.
* Saral-2 to be introduced for current year instead of ITR. eLagaan will launch the new forms as soon as the same are released by IT department, so no more worry with changing formats when you prepare the tax returns at eLagaan.

For Businesses:
* Surcharge for companies has been reduced from 10% to 7.5%
* Minimum Alternate tax has been increased from 15% to 18% of book profits
* Deductions in respect of expenses incurred on in-house research & development has been increased from 150% to 200%
* Deduction on payments made to approved research institutes for scientific research has been increased from 125% t0 175%
* Limit for accounts to be audited has been increased from 40Lacs to 60lacs for businesses and from 10lacs to 15Lacs for Professionals
* Interest for delay in depositing taxes has been increased from 12%p.a. to 18%p.a

Other Highlights
* Petrol and diesel will cost more
* Normal cars to cost more and ELECTRIC cars to cost less
* Custom duty on precioous metals like Gold, Platinum etc. hiked from Rs.200 to Rs.300 per gram
* GST and Direct Tax Code to be applicable from 01-Apr-2011Prepare and File your Taxes Online for FREE, visit elagaan.com

Headstart network appreciated eLagaan at their 2nd Anniversary Celebrations of Startup Saturday on 13-Feb-2010, for our various activties and commitment to Startups, Small Businesses and Entrepreneurs.

We are truely moved by this gesture and THANK Headstart for the same. We also acknowledge and complement Headstart network for their unbiased support and efforts to ensure success and recognition for Startups. We pledge to continue our support.Prepare and File your Taxes Online for FREE, visit elagaan.com

At eLagaan, we are aware of the trust you place in us and our responsibility to protect your privacy. As part of this responsibility, we have updated our privacy policies to ensure more transparency, security and safety of your data.

Please visit eLagaan Privacy Central for more details on the updated Privacy Policies. These policies are in effect from 10-Feb-2010 00:00 Hrs IST.

For any privacy related queries, please feel free to write to us at support AT eLagaan DOT com.

-eLagaan SupportPrepare and File your Taxes Online for FREE, visit elagaan.com

Navin Kumar from Team eLagaan was invited to Jury panel at Tarkash 2010 organized by ICFAI Business School, Bangalore.

It was great to be back to School after so long. The talent and passion demonstrated by these young grads was amazing. Many ideas were very innovative and addressed a large pain segment for Indians.

eLagaan congratulates the winning team wefaculty.com and wishes all success to all the teams. Salute to the Young face of Entrepreneurship.Prepare and File your Taxes Online for FREE, visit elagaan.com

National Geographic Channel is conducting a nationwide contest to identify innovative ideas that has the potential of changing our lives.
eLagaan has always been happy to support promising ideas and young talents in whatever way we can. eLagaan team brings some of these ideas unplugged to you from the contestants and winners of the Regional Finals - South, held at IIM Bangalore.
We wish them all success and luck for the Finals of the event to be held at New Delhi. Great Job!!! guys and keep up this spirit of innovation and entrepreneurship.



Prepare and File your Taxes Online for FREE, visit elagaan.com