What is E-wallet/Virtual Card?
E-wallet is an online prepaid account where one can stock money like Paytm. As it is a pre-loaded facility, consumers can buy a range of products from airline tickets to grocery without swiping a debit or credit card.
Nowadays e-commerce transactions are increasing day by day as people prefer to buy goods and services via e-commerce websites like amazon, Flipkart and Snapdeal. For buying such product or service an option of payment via e-wallet and Virtual Cards is also available.
Whether amounts held in e-wallets and virtual cards needs to be disclosed under Black Money Act?
The CBDT has clarified vide Circular No. 15/2015, dated 3-9-2015 that monies held in e-wallets and virtual cards needs to be disclosed under the Black Money Act.
However, disclosure is required only in those cases where e-wallets and virtual cards are maintained online on a website hosted in a foreign country which was initially funded by income chargeable to tax and on which taxes has not been paid.
Thus, a person earning income by playing online games or Poker through e-wallet or virtual cards needs to make declaration in respect of such wallet and cards under the Black Money Law.
CA. Rajender Arora M: +91-9891112120