Got income tax notice for credit card spends

[friends2b11]

I have placed various orders from Flipkart with Flipkart Axis Bank credit card and after buying those orders sold them outside at lower prices.I gave the outside shopkeeper a lower price than the prize I bought.But since I got five percent cashback, I got some profit and not loss.

Besides, I have ordered many things for friends & family.(Your annual fee is waived off if you spend a certain amount on your credit card and clear the amount on time. )

Besides credit card payment showed deposit for which I have already replied with bank statement.And all the deposits were made by myself and no money was sent to anyone.

Can I now tell the income tax department that I used to run a cyber cafe and have customers there and for them I bought these things with my credit card.
Income tax department has asked me for credit card statement and which I will send them.
But income tax asked me about the payment I sent and their details and PAN number but I don't have any details.

And yes I have been filing regular income tax for 3-4 years and I show that my income is less than 5 lacs in the year.
And since I didn't file income tax on time I also paid 1000 late payment fee.


I got this notice from it dept-

Please refer to the notice under section 133(6) issued from this office and the subsequent reply made by you. Please note that as per
the Trading & Profit and Loss Account furnished by you, the total sales is Rs.18,xx,xxx/- whereas as per information, your total
payment by credit card amounts to Rs.25,xx,xxx/-. So you are requested explain the issue and submit the details of the person
(including PAN and Contact number) for whom the payment has been made. You are also requested to submit the credit card
statement for the F.Y. 2020-21. You are requested to comply within xx/xx/2023.
Response to the letter can be furnished through Compliance Portal only.

I have done a lot of shopping with credit cards for the rest of the years but since I paid the income tax on time I didn't get the notice.
Income tax notice was sent to me because I did not fill the income tax in that year but after sending the income tax notice I paid the income tax with late payment free.

To the first notice I have given the reply in due time and this is the second notice that I have been questioned again.
Now how do I give the reply to the IT department yes I will send the cc statement but how do I tell them can someone explain me so that I can give the reply properly.




the original notice which I received two to three months ago.At that time I had not filled ITR for that year and I was asked to fill revised ITR and I filled ITR with late payment fee ( 1000 INR ).

And I gave answers to the questions that were put to me and I also sent my trading PL statement statement and bank statement.

But today I got another reply to that notice.


Remaining year ITR-4 is already filed and business name is ABC Trading & Online
Nature of bussiness shown in ITR- Electronic Goods and Accessories

But since my card got canceled in the last month, I didn’t get the cashback that I earned in last month, so I didn’t have any money in my pocket.”

“The cash pack of the last month was so much more than the first two months”.So since I didn’t get the last match cashback, ultimately the cashback I earned for the first two months is no longer in my pocket.

 

[Deleted member 9785]

Some cards have a target spend of 15 lakhs in the card anniversary year.

So can we divide the target spend over 2 financial years to keep it below 10 lakhs in the financial year ending 31 March to avoid any notice?

make sure you have adequate ITR

 

[Zacobite]

Some cards have a target spend of 15 lakhs in the card anniversary year.

So can we divide the target spend over 2 financial years to keep it below 10 lakhs in the financial year ending 31 March to avoid any notice?

You have nothing to fear if spends are genuine and in line with your income.. IT dept is collecting data from many points and your expenses will show somewhere or the other.. Keep it clear..If you are rotating money also, as long as accounting is kept clear it shouldn't matter.. But keeping account is important.. Hiding it is the worst approach.. and will lead to multiple issues.. banks calling out unreasonable use / IT dept / credit agencies are also plugging in to this soon... General reply to all and not to @drsel only 🙂

 

[SSV]

Some cards have a target spend of 15 lakhs in the card anniversary year.

So can we divide the target spend over 2 financial years to keep it below 10 lakhs in the financial year ending 31 March to avoid any notice?

Yes , you can spread it across two financial years .
It wont be reported in SFT statement..

Make sure your 10l per financial year spend is based on the Bank not on each card..
Means if you have 3 cards from one bank, this 10L will be calculated on total 3 cards from the same bank…

 

[arunkd386]

Can i make additional payment in last month before statement generation if total spends are just above 10L?

 

[chiggybansal1]

@friends2b11 what's the update on your notice thing bro can you update?

 

[Saipsy]

Dont you think people wont have savings from previous years which they can spend later.
People commenting credit card useage in a FY should be less than earning for that year. Total BS.
As long as you file your ITR's correctly nothing to be worried about.

 

[shashankrt]

Some cards have a target spend of 15 lakhs in the card anniversary year.

So can we divide the target spend over 2 financial years to keep it below 10 lakhs in the financial year ending 31 March to avoid any notice?

dude.. if spending 10L on any card triggers IT notice due to AIS then that person is not in the right tax bracket to spend 10L. Generally ppl with 30L plus ITR can safely spend 10L on card each year and will not get notice even if it appears in AIS.

 

[Vasuki]

I have placed various orders from Flipkart with Flipkart Axis Bank credit card and after buying those orders sold them outside at lower prices.I gave the outside shopkeeper a lower price than the prize I bought.But since I got five percent cashback, I got some profit and not loss.

Besides credit card payment showed deposit for which I have already replied with bank statement.And all the deposits were made by myself and no money was sent to anyone.

Can I now tell the income tax department that I used to run a cyber cafe and have customers there and for them I bought these things with my credit card.
Income tax department has asked me for credit card statement and which I will send them.
But income tax asked me about the payment I sent and their details and PAN number but I don't have any details.

And yes I have been filing regular income tax for 3-4 years and I show that my income is less than 5 lacs in the year.
And since I didn't file income tax on time I also paid 1000 late payment fee.


I got this notice from it dept-

Please refer to the notice under section 133(6) issued from this office and the subsequent reply made by you. Please note that as per
the Trading & Profit and Loss Account furnished by you, the total sales is Rs.18,xx,xxx/- whereas as per information, your total
payment by credit card amounts to Rs.25,xx,xxx/-. So you are requested explain the issue and submit the details of the person
(including PAN and Contact number) for whom the payment has been made. You are also requested to submit the credit card
statement for the F.Y. 2020-21. You are requested to comply within xx/xx/2023.
Response to the letter can be furnished through Compliance Portal only.

I have done a lot of shopping with credit cards for the rest of the years but since I paid the income tax on time I didn't get the notice.
Income tax notice was sent to me because I did not fill the income tax in that year but after sending the income tax notice I paid the income tax with late payment free.

To the first notice I have given the reply in due time and this is the second notice that I have been questioned again.
Now how do I give the reply to the IT department yes I will send the cc statement but how do I tell them can someone explain me so that I can give the reply properly.




the original notice which I received two to three months ago.At that time I had not filled ITR for that year and I was asked to fill revised ITR and I filled ITR with late payment fee ( 1000 INR ).

And I gave answers to the questions that were put to me and I also sent my trading PL statement statement and bank statement.

But today I got another reply to that notice.


Remaining year ITR-4 is already filed and business name is ABC Trading & Online
Nature of bussiness shown in ITR- Electronic Goods and Accessories

But since my card got canceled in the last month, I didn’t get the cashback that I earned in last month, so I didn’t have any money in my pocket.”

“The cash pack of the last month was so much more than the first two months”.So since I didn’t get the last match cashback, ultimately the cashback I earned for the first two months is no longer in my pocket.

25 lakh on Flipkart card

Amex me sharma jyega 🌚

 

[Vasuki]

Dont you think people wont have savings from previous years which they can spend later.
People commenting credit card useage in a FY should be less than earning for that year. Total BS.
As long as you file your ITR's correctly nothing to be worried about.

Asked about clarification ..
If u can justify..none asking you anything more
.
Getting notice isn't equal to being a offender

 

[friends2b11]

@friends2b11 what's the update on your notice thing bro can you update?

bro I have filled ITI regularly for last 4-5 years.Maybe the IT department wanted to see where I was using my credit card.
I just forgot to send the credit card statement maybe that was the only problem.

 

[chiggybansal1]

bro I have filled ITI regularly for last 4-5 years.Maybe the IT department wanted to see where I was using my credit card.
I just forgot to send the credit card statement maybe that was the only problem.

So it's sorted now? How did you justified 25 lakhs worth transaction?

 

[Tonymathew]

bro I have filled ITI regularly for last 4-5 years.Maybe the IT department wanted to see where I was using my credit card.
I just forgot to send the credit card statement maybe that was the only problem.

Bro, what was the outcome, if it's okay to share??

 

[Tonymathew]

C

I have placed various orders from Flipkart with Flipkart Axis Bank credit card and after buying those orders sold them outside at lower prices.I gave the outside shopkeeper a lower price than the prize I bought.But since I got five percent cashback, I got some profit and not loss.

Besides, I have ordered many things for friends & family.(Your annual fee is waived off if you spend a certain amount on your credit card and clear the amount on time. )

Besides credit card payment showed deposit for which I have already replied with bank statement.And all the deposits were made by myself and no money was sent to anyone.

Can I now tell the income tax department that I used to run a cyber cafe and have customers there and for them I bought these things with my credit card.
Income tax department has asked me for credit card statement and which I will send them.
But income tax asked me about the payment I sent and their details and PAN number but I don't have any details.

And yes I have been filing regular income tax for 3-4 years and I show that my income is less than 5 lacs in the year.
And since I didn't file income tax on time I also paid 1000 late payment fee.


I got this notice from it dept-

Please refer to the notice under section 133(6) issued from this office and the subsequent reply made by you. Please note that as per
the Trading & Profit and Loss Account furnished by you, the total sales is Rs.18,xx,xxx/- whereas as per information, your total
payment by credit card amounts to Rs.25,xx,xxx/-. So you are requested explain the issue and submit the details of the person
(including PAN and Contact number) for whom the payment has been made. You are also requested to submit the credit card
statement for the F.Y. 2020-21. You are requested to comply within xx/xx/2023.
Response to the letter can be furnished through Compliance Portal only.

I have done a lot of shopping with credit cards for the rest of the years but since I paid the income tax on time I didn't get the notice.
Income tax notice was sent to me because I did not fill the income tax in that year but after sending the income tax notice I paid the income tax with late payment free.

To the first notice I have given the reply in due time and this is the second notice that I have been questioned again.
Now how do I give the reply to the IT department yes I will send the cc statement but how do I tell them can someone explain me so that I can give the reply properly.




the original notice which I received two to three months ago.At that time I had not filled ITR for that year and I was asked to fill revised ITR and I filled ITR with late payment fee ( 1000 INR ).

And I gave answers to the questions that were put to me and I also sent my trading PL statement statement and bank statement.

But today I got another reply to that notice.


Remaining year ITR-4 is already filed and business name is ABC Trading & Online
Nature of bussiness shown in ITR- Electronic Goods and Accessories

But since my card got canceled in the last month, I didn’t get the cashback that I earned in last month, so I didn’t have any money in my pocket.”

“The cash pack of the last month was so much more than the first two months”.So since I didn’t get the last match cashback, ultimately the cashback I earned for the first two months is no longer in my pocket.

Can anyone point out that whether it was transaction of this much amount by a credit card from a single bank the issue, along with the cash deposits?

Or even if I use 10 banks for 2.5 lakh each purchase for a total of 25 LPA, be also a same headache.

Suppose my annual income is 12LPA

Just a hypothetical scenario, on to decide whether I should let my friend use my card to purchase an s24 ultra and an iPhone.

I want no trouble, even for 2% cashback

 

[jaisinghal]

C

Can anyone point out that whether it was transaction of this much amount by a credit card from a single bank the issue, along with the cash deposits?

Or even if I use 10 banks for 2.5 lakh each purchase for a total of 25 LPA, be also a same headache.

Suppose my annual income is 12LPA

Just a hypothetical scenario, on to decide whether I should let my friend use my card to purchase an s24 ultra and an iPhone.

I want no trouble, even for 2% cashback

Have been using my credit cards more than my itr since past few years have never faced a issue. I think it's due to my current account. I make all the payments from my current account through 3rd party like cred etc. Been spending close to 20-25 lakhs every year.

 

[Zacobite]

C

Can anyone point out that whether it was transaction of this much amount by a credit card from a single bank the issue, along with the cash deposits?

Or even if I use 10 banks for 2.5 lakh each purchase for a total of 25 LPA, be also a same headache.

Suppose my annual income is 12LPA

Just a hypothetical scenario, on to decide whether I should let my friend use my card to purchase an s24 ultra and an iPhone.

I want no trouble, even for 2% cashback

one s24 and an iPhone won't create any issues.. unless u buy every month 🙂

 

[Alpha]

Same dude! But one year later 🥺😶🤔

 

[HumorSimpson]

Same dude! But one year later 🥺😶🤔

Commander El supremo @Abhishek012

 

[bing1309]

Have been using my credit cards more than my itr since past few years have never faced a issue. I think it's due to my current account. I make all the payments from my current account through 3rd party like cred etc. Been spending close to 20-25 lakhs every year.

Even you can add other point also. Others paying directly to your cc without an funds coming to your account. And keep in mind due to this mess bbps has been introduced to close monitor all payments to credit accounts without routing to saving account.

 

[RAMESH BABU N]

Have been using my credit cards more than my itr since past few years have never faced a issue. I think it's due to my current account. I make all the payments from my current account through 3rd party like cred etc. Been spending close to 20-25 lakhs every year.

Even if you have only SB accounts, there's no issue. The triggering points could be :

1. Students/unemployed - with no declared income n ITRs - excessive use of CCs - trxns running into lakhs - per annum.

2. Self Employed - with low ITRs - but CC trxns running into Lakhs every month.

3. Using only one CC for over 10L cululative total of trxns in a year.

4. Using SB account for for CC payments - where non-personal use of CC is predominant.

5. Using SB account for Business Card payments - even by Self Employed or Professionals. This is where a business Current Account helps.

6. Dealing in speculative sites n crypto curreny dealings.

7. Salaried - spending in excess of ITR figures thru CCs.

8. Earlier - (now not possible) - paying advance amounts in CC accounts by cash.

9. Buying lot many pre-paid Gift Cards n pre-paid CCs.

The above are some of the known trigger points. There could be many.

 

[Tonymathew]

Even if you have only SB accounts, there's no issue. The triggering points could be :

1. Students/unemployed - with no declared income n ITRs - excessive use of CCs - trxns running into lakhs - per annum.

2. Self Employed - with low ITRs - but CC trxns running into Lakhs every month.

3. Using only one CC for over 10L cululative total of trxns in a year.

4. Using SB account for for CC payments - where non-personal use of CC is predominant.

5. Using SB account for Business Card payments - even by Self Employed or Professionals. This is where a business Current Account helps.

6. Dealing in speculative sites n crypto curreny dealings.

7. Salaried - spending in excess of ITR figures thru CCs.

8. Earlier - (now not possible) - paying advance amounts in CC accounts by cash.

9. Buying lot many pre-paid Gift Cards n pre-paid CCs.

The above are some of the known trigger points. There could be many.

Can you explain point number 4 in a bit more details sir.

Paying from SB would trigger if the original purchase was non personal, even after recieving the exact same amount money (not more or less), from the beneficiary of that purchase?

Pls explain sir