AIS & Credit Card Usage Notice

[hender]

My friend showing his ITR 7lakhs yearly, but his SFT was shown as 1.79crores in 2023-2024 and 1.8crores in 2024-2025. No tax notice came till now, auditor says if we correctly filled the income tax and compliance in SFT. if not tax filled notice may come. but SFT in 2022-2023 45lakhs feedback he given for High value spends.

Anyone receive income tax notice for High value Credit card spend in AIS

What are the attributes of SFT ?

 

[desiviru]

Even Rs 2/- is reported in AIS/TIS nowadays.

2/- SB Interest recieved in JIO Payment Bank's SB account - on it's closure. Even that paltry sum is tracked, collected, collated, tabulated, classified n reported by the ITD. They must have spent more money than 2/- to do all those tasks, at so many levels.

Thinking that ITD doesn't know is nothing but foolishness. And, stupidity.

With all around 360 degree data collection and use of AI tools, more n more trxns are being tracked.

Better be careful n keep all relevant records.

Not ITD but reporting is done by banks and it is a standard process these days. If PAN is there it gets auto-reported. People open account using eKYC where PAN and Aadhaar gets linked at first step. Without PAN or Form 60, it is not reported anywhere. Like my father post office savings account didn't had PAN for 25 years and only last year he updated in reKYC as having PLI insurance maturity amount coming. This year same Postal savings acocunt interest is updated. I wasn't even aware of this account. So kind of missed addition of meagre interest reporting in ITR for so many years.

Just like banks reports TD interest in 26AS if tax is deducted, same way systems are connected to AIS and every bank send whole file to ITD with PAN data.

Sir, don't just take the Rs.2 case. Because of this reporting they are getting lakhs to crores in tax also which people used to hide before. Even I started reporting savings account interest after Arun Jaitely made it compulsory before that, I many times missed to report. But as it used to be less than 10K, so deduction was there in 80TTA which would have not affected tax liability.

There is also a benefit of AIS. Some people forget their accounts and PAN/Account reporting made them get to know that they have so and so account running since AIS started in 2020. Usually these people used account once a year and then forgot. Even if it becomes dormant one can easily get old ais data to know.

 

[Pravin1156]

What are the attributes of SFT ?

Statement of Financial Transactions

 

[hender]

Statement of Financial Transactions

Sir, under which categories all of transaction has been reported in SFT ?

Like
Transaction of Sale/Purchase of Property ?
Transactions in listed securities and units of mutual funds. ?

 

[hender]

Sir, I think they are talking about these transactions getting reported in SFT - (under Compliance portal / AIS)
Reflecting in SFT is very normal but getting notice is little serious.
People are even afraid of thngs showing up in SFT, don't know why.

I think going forward everything will get reported in SFT - Even our day to day UPI transactions also will come under SFT.
As govt and income tax dept are bringing everthing and everyone into the system, tracing these things will be easy. (In other words, escaping the net will be difficult)
The main problem is - people are afraid of income tax dept. It is shown as villain in many movies - like one raid comes and they take off everything and go.

Even Rs 2/- is reported in AIS/TIS nowadays.

2/- SB Interest recieved in JIO Payment Bank's SB account - on it's closure. Even that paltry sum is tracked, collected, collated, tabulated, classified n reported by the ITD. They must have spent more money than 2/- to do all those tasks, at so many levels.

Thinking that ITD doesn't know is nothing but foolishness. And, stupidity.

With all around 360 degree data collection and use of AI tools, more n more trxns are being tracked.

Better be careful n keep all relevant records.

Not ITD but reporting is done by banks and it is a standard process these days. If PAN is there it gets auto-reported. People open account using eKYC where PAN and Aadhaar gets linked at first step. Without PAN or Form 60, it is not reported anywhere. Like my father post office savings account didn't had PAN for 25 years and only last year he updated in reKYC as having PLI insurance maturity amount coming. This year same Postal savings acocunt interest is updated. I wasn't even aware of this account. So kind of missed addition of meagre interest reporting in ITR for so many years.

Just like banks reports TD interest in 26AS if tax is deducted, same way systems are connected to AIS and every bank send whole file to ITD with PAN data.

Sir, don't just take the Rs.2 case. Because of this reporting they are getting lakhs to crores in tax also which people used to hide before. Even I started reporting savings account interest after Arun Jaitely made it compulsory before that, I many times missed to report. But as it used to be less than 10K, so deduction was there in 80TTA which would have not affected tax liability.

There is also a benefit of AIS. Some people forget their accounts and PAN/Account reporting made them get to know that they have so and so account running since AIS started in 2020. Usually these people used account once a year and then forgot. Even if it becomes dormant one can easily get old ais data to know.

Very well said...

Life is lot more easy Now with AIS/TIS, We just have to cross check ✔️ reported numbers and confirm, rather than collection of data from different sources.
Don't know why people getting afraid out of it.

 

[Pravin1156]

Reported in under "Miscellaneous payment" category in AIS

Sir, under which categories all of transaction has been reported in SFT ?

Like
Transaction of Sale/Purchase of Property ?
Transactions in listed securities and units of mutual funds. ?

 

[cardio_guycardio_guy is verified member.]

Sir, under which categories all of transaction has been reported in SFT ?

Like
Transaction of Sale/Purchase of Property ?
Transactions in listed securities and units of mutual funds. ?

https://support.taxaj.com/portal/en/kb/articles/sft-codes-in-annual-information-statement

Each category and it's limit, description etc can be seen there in this link.
I think they will add more and more categories in the future.

 

[Pravin1156]

Very well said...

Life is lot more easy Now with AIS/TIS, We just have to cross check ✔️ reported numbers and confirm, rather than collection of data from different sources.
Don't know why people getting afraid out of it.

Yes its true. In modern digital world. ITD is just data backup of our financial statements and information's, Just we have to accept and confirm the transactions, not to worry about it.

 

[hender]

https://support.taxaj.com/portal/en/kb/articles/sft-codes-in-annual-information-statement

Each category and it's limit, description etc can be seen there in this link.
I think they will add more and more categories in the future.

Sir, Categories wise am aware little bit, @Pravin1156 posted about 1.79 CR and 1.8 CR reported numbers 🔢, I asked him about under which category it's been reported in SFT.

 

[Pravin1156]

Sir, Categories wise am aware little bit, @Pravin1156 posted about 1.79 CR and 1.8 CR reported numbers 🔢, I asked him about under which category it's been reported in SFT.

@hender All amounts are referred to Credit card usage only

 

[hender]

C

All amounts are referred to Credit card usage only

Than 🙌 , 🤭

 

[cardio_guycardio_guy is verified member.]

Sir, Categories wise am aware little bit, @Pravin1156 posted about 1.79 CR and 1.8 CR reported numbers 🔢, I asked him about under which category it's been reported in SFT.

Oh ok, sorry I misunderstood your question.

 

[Robin_123]

Yes its true. In modern digital world. ITD is just data backup of our financial statements and information's, Just we have to accept and confirm the transactions, not to worry about it.

If credit card payments in a financial year is much more than one's known source of income, i.e. the returned income as per his ITR, ITD may scrutinize his income by specially selecting the case. It is another thing that every case is not selected for scrutiny and the person escapes the tax/penalty, just like crossing signal but not receiving challan.

 

[hender]

Oh ok, sorry I misunderstood your question.

No issues, readers must be aware about the latest Rules/System, doesn't matter who is helping...
You shared link outside of IT Dept, but it's easy to navigate and understand.

 

[RajeshV]

is your pea sized brain capable of thinking at this level only? Just coz you are into tax evading doesn't mean everyone is. Do better.

How the heck does that even make sense? I'm literally saying there's absolutely no reason to even think about what's appearing as an SFT, and yet here you are, accusing me of the exact opposite.

You've got an urge to hurl abuses at people for pointing out that you're following the herd without questioning why?

Some do have businesses under family member's name, and but they are the one who handle the business meanwhile the family member is a housewife who is just in papers. So there requires some planning to not raise unnecessary questions. Most expenses are on business.

And? What of it? As long as you're capable of explaining your sources of income and proving that it was taxed appropriately, nobody has any right to dispute it.

I see you made a thread wanting to know a UPI app focused on privacy. Why? What you have to hide? Are you a thief? Evading tax?

Wow. Somebody sure has a lot of free time that they needed to go through some random persons post history to find something to point at.

And, really? That was the best you could come up with? I suppose you'd even say you don't need clothes since everybody has bodies and there's nothing to hide?

No one asked.

You quite literally did.

 

[Sobirvs]

And? What of it? As long as you're capable of explaining your sources of income and proving that it was taxed appropriately, nobody has any right to dispute it.

I know, but I guess you have never visited a Govt office ever. I never had an IT issue in my life till now and I plan to keep it that way. Police, govt office, it doesn't matter if you haven't done anything, if they want to extort money from you, they will, regardless you are correct or otherwise.

ignoring all other of your useless desperate gaslighting noise bs.

 

[RajeshV]

I know, but I guess you have never visited a Govt office ever.

I deal with this on a daily basis.

Hats off to your insight.

 

[Sobirvs]

I deal with this on a daily basis.

Hats off to your insight.

A cop follows a car long enough, he's gonna find a busted tail light. And even if he doesn't, he's gonna bust it himself.

 

[Strange]

I paid 20L+ credit card bills last year,

In a single bank?

 

[Sobirvs]

In a single bank?

I don't think it matters what savings acc was used to pay the card.

It depends if the payment was on single card 10L+