1.12 Crore Income Tax Notice for Credit Card usage !

[sunit123]

If you spend money in credit card and someone pays behalf of you to the credit card why would you receive notice ?, the money has gone to a credit card which Is a loan account, ideally you are supposed to pay if you have money in your bank account or how you got the money in your account, (savings) but an loan account you cant literally save it where is the point of IT? Let's say you have add on cards and you spend on add on card and then Bill is generated to primary card and spend shows on primary card that means primary card holder is responsible for spends? What Logic is this? IT never works like that, IT has powers upto your saving account not on your loan accounts specifically for credit cards

Due to post paid nature of payment, CC is considered as advance loan but balance you owe to bank is a liability in your balance sheet. Liabilities are financial obligations that individuals or businesses owe to others and it is treated as debt. Therefore, CC creates debt, which is a liability that appears on a balance sheet, showing the amount of money you are obligated to repay

Any liability or debt is the responsibility of individuals or businesses not of the person who is clearing it.

 

[RAHUL GOYAL]

credit card par ek saal mein 10 lakh tak transaction kar sakte hai na
mere pass kiwi card hai jo march mein activate hua tha matlab agle march tak gina jega na transactions
maine ab tak 5.5L use kar liye hai card or iss card pe 2L ka loan bhi liya hai matlab agar loan payment gin lo toh 7..5L credit ho jaenge card mein
toh maan lo iss card mein march tak total 9L credit ho toh koi income tax ki dikkat nahi hai na
meri ITR 4.95L ki hai

 

[aayusharyan]

credit card par ek saal mein 10 lakh tak transaction kar sakte hai na
mere pass kiwi card hai jo march mein activate hua tha matlab agle march tak gina jega na transactions
maine ab tak 5.5L use kar liye hai card or iss card pe 2L ka loan bhi liya hai matlab agar loan payment gin lo toh 7..5L credit ho jaenge card mein
toh maan lo iss card mein march tak total 9L credit ho toh koi income tax ki dikkat nahi hai na
meri ITR 4.95L ki hai

Yeah, less than 10 lacs isn;t reported to ITR.

 

[RAHUL GOYAL]

Yeah, less than 10 lacs isn;t reported to ITR.

ok thanks ye 10L limit ek bank ki hogi na jaise mein yes card 9L use karlu or Sbi bhi 8L use ho jae

 

[aayusharyan]

ok thanks ye 10L limit ek bank ki hogi na jaise mein yes card 9L use karlu or Sbi bhi 8L use ho jae

Yes, this is per bank... Irrecpective number of cards... So, for example, with ICICI, I have 7-8 cards. That doesn't mean, I can use 70L without reporting... It will still be 10L only...