Credit card spend of 5 lac per month by Dad for business

[shazansalim]

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[NABNAB is verified member.]

Yes, you will be in serious trouble. Consult a good CA and stop this practice ASAP.
Also, consider asking your father to get a business CC for your regular business expenses.

 

[Sobirvs]

No, as long as you can show the trace of money if IT ever questions you, it's fine. Specially in case of blood relations but anywhich ways it is fine.

 

[NABNAB is verified member.]

No I won't consult a CA for such small issues. A blog or chatgpt must be sufficient to solve such issues.

Also a credit card whether business or non business can be used for any transactions. Almost 90% of the banks don't even have a business credit card.

Okay, Best of Luck brother.

 

[skvignesh]

No I won't consult a CA for such small issues. A blog or chatgpt must be sufficient to solve such issues.

Also a credit card whether business or non business can be used for any transactions. Almost 90% of the banks don't even have a business credit card.

Surely you will get notice from ITD .

Few bank will block the card if you use for business purposes...

 

[tachniki]

chatgpt must be sufficient to solve such issues

Not sure if folks understand that chatgpt is generative AI. It can hallucinate based on temperature used by model. Whatever it says may not be true or what it has been trained on. It can make up things that doesn't exist. Even if temperature is controlled, it may have been trained on things which may not be true or outdated.

So, unless we have AI solution that is being provided specifically for legal consulting, do not just accept what chatgpt says.

 

[Adith]

No I won't consult a CA for such small issues. A blog or chatgpt must be sufficient to solve such issues.

Also a credit card whether business or non business can be used for any transactions. Almost 90% of the banks don't even have a business credit card.

If you are not gonna listen to veterans and people who have been using cc for a long time giving you advice, what are you doing in this forum and what was the purpose of this post ?

If you think chatgpt or a blog is sufficient , then why even ask for " steps to avoid complications" ? What stupid attitude or logic is this ?

Basically wasting people's time.

 

[sunit123]

CA will not help...He will only confuse you further. I lost lakhs following CA's advice.

Basic thumb rule is that your credit card spend should not be more than income you declare in ITR.

If your income is zero then do not use credit card for more than say 10k per month.

If it is absolutely necessary to use credit card by your father then the best solution is take add on card in the name of your father and let him directly pay your credit card bill from his bank account/income. In this case, you will have proper justification in case you receive IT notice.

 

[railsfanatics]

CA will not help...He will only confuse you further. I lost lakhs following CA's advice.

Basic thumb rule is that your credit card spend should not be more than income you declare in ITR.

If your income is zero then do not use credit card for more than say 10k per month.

If it is absolutely necessary to use credit card by your father then the best solution is take add on card in the name of your father and let him directly pay your credit card bill from his bank account/income. In this case, you will have proper justification in case you receive IT notice.

Tax liability for add on cards also lie on the primary account holder. Add-on cards are just a convenience like a duplicate key for a lock. So, if add-on card holder pays CC bill using his savings account does not change the situation at all.

 

[sunit123]

Tax liability for add on cards also lie on the primary account holder. Add-on cards are just a convenience like a duplicate key for a lock. So, if add-on card holder pays CC bill using his savings account does not change the situation at all.

That is why i mentioned "you will have proper justification in case you receive IT notice"

In this case he can establish that card was used by his father and payment was also made by his father.

 

[railsfanatics]

That is why i mentioned "you will have proper justification in case you receive IT notice"

In this case he can establish that card was used by his father and payment was also made by his father.

One option is he could claim all that amount his father paid to settle CC as a loan he took from his father as both are two different entities (read PAN). He would have to settle that at some point in his life.

If he won't settle, like everyone else said good luck explaining it to the IT department. Trust me, it is easier to correct this practice now than to regret it and reply to IT (and even GST if that is in picture) department.

 

[Avatar Aang]

OP thinks he doesn't need CA and ChatGPT can help in replying to the IT notices. That's the most outrageous post I've seen on TF.

 

[Slayer]

Subeh uthte hi
Berozgaaro ko dekhte hi
Productive banne ka man karta hai

 

[railsfanatics]

Subeh uthte hi
Berozgaaro ko dekhte hi
Productive banne ka man karta hai

Aaj Sunday hai, poora desh berozgar hai 😈

 

[Avatar Aang]

Aaj Sunday hai, poora desh berozgar hai 😈

Har kisika Sunday nahi hota Laxman.

 

[Slayer]

Aaj Sunday hai, poora desh berozgar hai 😈

Zym ja raha hu abhi productive banne ke liye

 

[sunit123]

Har koi mazdoor nahi hota

 

[phronimos]

If you are not gonna listen to veterans and people who have been using cc for a long time giving you advice, what are you doing in this forum and what was the purpose of this post ?

If you think chatgpt or a blog is sufficient , then why even ask for " steps to avoid complications" ? What stupid attitude or logic is this ?

Basically wasting people's time.

My sentiments precisely.

 

[sunit123]

CA's are only good in answering nursery level queries related to 80C, Salary income etc....I have lost around 30 Lakh's in tax due to these so called CA's

1. I can give a open challenge, i will give 10 question...Ask same questions to chat gpt and a best CA in world according to u....I can give it in writing that chat gpt will give correct answer to all 10 questions...A CA might answer only 2/3 correctly

2. Why CA's are afraid of giving written opinion, if they are so knowledgeable.

3/ Why CA's are afraid of filing return in their name i.e. enter their details in IT portal of tax payer.

By the way, i have dealt with around 25 CA's in my life from 5k per month fees to 25k per month fees...My conclusion, i know much more than all these 25 collectively together. I am not bragging but i learnt one thing in life that if you do not know then others will fool you....Now i can take classes for CA's

 

[hender]

CA's are only good in answering nursery level queries related to 80C, Salary income etc....I have lost around 30 Lakh's in tax due to these so called CA's

1. I can give a open challenge, i will give 10 question...Ask same questions to chat gpt and a best CA in world according to u....I can give it in writing that chat gpt will give correct answer to all 10 questions...A CA might answer only 2/3 correctly

2. Why CA's are afraid of giving written opinion, if they are so knowledgeable.

3/ Why CA's are afraid of filing return in their name i.e. enter their details in IT portal of tax payer.

By the way, i have dealt with around 25 CA's in my life from 5k per month fees to 25k per month fees...My conclusion, i know much more than all these 25 collectively together. I am not bragging but i learnt one thing in life that if you do not know then others will fool you....Now i can take classes for CA's

Your experience is entirely different...
There are people who are continuing with the same CA from the past 20 -35 years...
With ample of wealth created...