Answer

Digital economy · Apps & SaaS

Stripe / PayPal / Razorpay: payment processor tax compliance

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  1. Facts

    Payment processors are now a significant IT department data source. Stripe India reports all merchant settlements above thresholds to the IT department via SFT. PayPal India settlements appear in AIS.

  2. Provisions and law

    • FEMA, Payment and Settlement Systems Act | IT Act, Sec 102 (old 68)

  3. Analysis

    Stripe Atlas / foreign Stripe: If you're collecting USD through a foreign Stripe entity (US or EU), and then repatriating to India, FEMA compliance is required. The income is taxable in India (you're a resident). Bring it in through official banking channels with proper FIRC. Razorpay settlements: Indian platform. All settlements reportable. If you have significant Razorpay volume (₹10L+/year) and it's not in your ITR, you will get a notice.

  4. Conclusion

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