What get reported to AIS? Spends or Payments?

[KK001]

A very important question came in my mind.

I want to that in AIS ( reported by banks to income tax) does if includes billed amount of Credit Cards Or it includes all the transactions. In simple words

If One person spend 2 lakh in a month & more than 10 lakhs in a yr & pay the bill before bill generation date every month, Will it be still reported in AIS & is one is liable for IT NOTICE?

 

[Piyush_Jaiswal]

A very important question came in my mind.

I want to that in AIS ( reported by banks to income tax) does if includes billed amount of Credit Cards Or it includes all the transactions. In simple words

If One person spend 2 lakh in a month & more than 10 lakhs in a yr & pay the bill before bill generation date every month, Will it be still reported in AIS & is one is liable for IT NOTICE?

Yes, the whole amount gets reported.

Atleast for Axis Bank, I can say it for sure, since it has been reported for me.
If you have multiple credit cards with same bank, then it will be combined and checked if it is above 10 lakhs, then it will get reported.

If you file ITR around that figure, no need to worry.

 

[drsel]

It's payments made (not spends) over 10 lacs in any financial year ending 31 March that have to be reported.

Because any spend can be reversed, refunded or unclaimed by the merchant

 

[KK001]

Yes, the whole amount gets reported.

Atleast for Axis Bank, I can say it for sure, since it has been reported for me.
If you have multiple credit cards with same bank, then it will be combined and checked if it is above 10 lakhs, then it will get reported.

If you file ITR around that figure, no need to worry.

Hi, can you pls tell me if I have 5 credit card of different banks that combined limit is 10 lakhs that will be reported or SEPERATELY I will get 10 lakhs limit for each Bank credit card.

Because I don't understand that how each Bank will communicate about a particular PAN if spend from each credit card is 5 lakh per annum.

 

[KK001]

Yes, the whole amount gets reported.

Atleast for Axis Bank, I can say it for sure, since it has been reported for me.
If you have multiple credit cards with same bank, then it will be combined and checked if it is above 10 lakhs, then it will get reported.

If you file ITR around that figure, no need to worry.

& Yes if I spend more than 10 lakhs this FY i.e; till 31/03/2025 the is there any chances of getting notice in this year in 2024 ?

 

[#aniket]

& Yes if I spend more than 10 lakhs this FY i.e; till 31/03/2025 the is there any chances of getting notice in this year in 2024 ?

Assuming you will also be paying more than10 lakhs (net), then Yes.

 

[SSV]

& Yes if I spend more than 10 lakhs this FY i.e; till 31/03/2025 the is there any chances of getting notice in this year in 2024 ?

The definition is:
If your Total Payments into all of the Credit cards held in a Bank crosses more than 10L during a financial year ( 01 April to 31 March) then this will be reported in AIS...

Spends and payments are two different terms.

Spends - the transactions that were settled and billed..
Payments: the bill payments made into a credit card account after the bill is generated (typically) or before the bill is generated if you have habit of paying before bill generation...

Hope you understood the difference here..


Example:
1) You have two cards in ..
1. NEO
2. My ZOne:

On NEO - you spent 5 lakhs during FY 23-24 , but paid only 4.5L unitl 31 /03 ( deferring 50K to be paid in April 2024).
On My ZOne: you speent 5.5 lakhs , but paid 5.4 L .. ( deferring 10K to be paid in April 2024)..

Here
Total spends on both the cards: 10.5L ( 5+5.5L)
Total payments made into these two cards: 9.9L ( 4.5L + 5.4L)

In this case nothing will be reported by to ITD for AIS purposes, even though your total spends are more than 10L i.e 10.5 L , as your total payments are still under 10L ie. 9.9L..

Enjoy..

I hope you enjoyed the examples

 

[prashu]

Salary is 4LPA but the transactions total value is 10 to 12 L in an bank annual statement. Does this cause any issue in AIS or ITR?

 

[SSV]

total value is 10 to 12 L in an bank annual statement

is this SB account of a Bank?

 

[SSV]

Because any spend can be reversed, refunded or unclaimed by the merchant

payments can also be refunded in the case of excess payments...!!
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just sayin ..

 

[drsel]

payments can also be refunded in the case of excess payments...!!

Excess payment upto 10% is allowed and will not trigger a refund

 

[SSV]

Excess payment upto 10% is allowed and will not trigger a refund

It is not about triggered or not.. we can still ask for refund..if we choose to.
the point here is payments can also be refunded.. not just spends..

 

[#aniket]

It is not about triggered or not.. we can still ask for refund..if we choose to.
the point here is payments can also be refunded.. not just spends..

Yes no doubt, it's obvious na.

Let it frame like, Net Payments.

 

[SSV]

Yes no doubt, it's obvious na.

Let it frame like, Net Payments.

I was just teasing my mate @drsel !!

 

[drsel]

I was just teasing my mate @drsel !!

Pioneer teasing a legend!

 

[prashu]

is this SB account of a Bank?

Yes. Savings Balance. I have many banks like HDFC axis icici.
HDFC is salary account and annual transactions are like 10L and for Axis sb ac 13L and soo on.
I rotated money between accounts for paying credit cards.
Will that be a problem in future?

 

[RAMESH BABU N]

From this ITR filing year (2023-2024) onwards, you are required to give details of ALL your Bank accounts in your ITR.

Not that they do not have those details (all bank accounts are linked to PAN and/or Aadhaar and ITD has all those data), but they expect you to declare. So that, they can initiate steps - if needed in the near future.

So, keep these things in mind while using your CCs for non-personal uses.

 

[harshgupta940]

From this ITR filing year (2023-2024) onwards, you are required to give details of ALL your Bank accounts in your ITR.

Not that they do not have those details (all bank accounts are linked to PAN and/or Aadhaar and ITD has all those data), but they expect you to declare. So that, they can initiate steps - if needed in the near future.

So, keep these things in mind while using your CCs for non-personal uses.

Can you please specify by what do you mean by giving details in ITR. In the AIS they show all my banks interest credits and same while filing ITR is automatically synced. But with my income tax account I haven't connected all my accounts only 2 are connected out of 4. Is that a problem?

 

[RAMESH BABU N]

Can you please specify by what do you mean by giving details in ITR. In the AIS they show all my banks interest credits and same while filing ITR is automatically synced. But with my income tax account I haven't connected all my accounts only 2 are connected out of 4. Is that a problem?

Please see the ITR-1 (and other ITRs like ITR-2....). You are required to list ALL your bank accounts...

 

[Piyush_Jaiswal]

Hi, can you pls tell me if I have 5 credit card of different banks that combined limit is 10 lakhs that will be reported or SEPERATELY I will get 10 lakhs limit for each Bank credit card.

Because I don't understand that how each Bank will communicate about a particular PAN if spend from each credit card is 5 lakh per annum.

10 lakh per bank.

& Yes if I spend more than 10 lakhs this FY i.e; till 31/03/2025 the is there any chances of getting notice in this year in 2024 ?

If you make payments of more than 10 lakhs this financial year i.e till 31/03/25 then it will get reported in AIS in May 2025 and you will have time to fill ITR till 31 July 25 and only if your ITR details are not satisfactory, then you will get notice.

So even if you have crossed 10 lakhs in July 2024 itself you will only get to know about it in May 2025 and face consequences after July 2025