1.12 Crore Income Tax Notice for Credit Card usage !

[HumorSimpson]

Wow, investing so much time, money and energy into rotating funds and maximizing rewards, instead one should spend on skilling up.

money churing is their skill and they are skilling it up

 

[niloy1994]

My annual income is 4 lacs 20 thousands in 2024-25 FY . I spent around 7.5 lacs by credit card in 2024-2025 FY. Maximum spend is for my relatives. Should I worry about that ?

 

[aayusharyan]

My annual income is 4 lacs 20 thousands in 2024-25 FY . I spent around 7.5 lacs by credit card in 2024-2025 FY. Maximum spend is for my relatives. Should I worry about that ?

Usually banks mark SFT over a credit card bill payment of 10 lacs or a cash deposit of over 1 lac. How did your relatives pay you back?

 

[Hemang]

My annual income is 4 lacs 20 thousands in 2024-25 FY . I spent around 7.5 lacs by credit card in 2024-2025 FY. Maximum spend is for my relatives. Should I worry about that ?

atleast keep the invoices and screenshots of the payment received from them for credit card bill payment. Plus try ki online transfer ho, cash handle karna is a big red flag because they also won't be able to justify where they got that cash. dheere dheer mana kar dena bhai ye kaam karne se.

 

[Dr.AMAN]

Now he wants to pay that 1.12 Cr notice through credit card

Then he will get 2cr notice for next financial year😅. He will be rotating not just his credit card but also his ITR. And finally ED, CBI, IT will keep rotating around him

 

[aayusharyan]

Then he will get 2cr notice for next financial year😅. He will be rotating not just his credit card but also his ITR. And finally ED, CBI, IT will keep rotating around him

Getting a notice from ED for CC rotation will be next level fked up.

 

[Strange]

Will have to transfer PAN AO jurisdiction.

H o w?

 

[Wealth is my birth right!]

H o w?

If you change address in pan card the site where we file IT will change the circle jurisdiction

 

[iSayyed]

This is a classic case of credit card spends being misinterpreted as income by the IT department. ₹68.97 lakhs spent doesn’t mean that much income was earned... it could very well be credit card rotation, loans, or money already taxed.

The notice under Section 156 and addition under Section 69C (unexplained expenditure) usually happens when a taxpayer doesn’t file returns or fails to explain the source of funds. Since this person hasn’t filed returns since AY 2020–21, the IT Dept is treating the spends as unexplained and taxing it at 60%+ penalty, which resulted in the ₹1.12 crore demand.

The right approach here is not to panic but to reply through a qualified CA or tax lawyer, submit bank statements, card statements, and proof of income/funds. Once explained properly, the demand should come down drastically or even get dropped.

Moral of the story: high credit card usage is not a problem, but always file ITR and keep proper documentation so spends are matched with income.

THIS

Despite conducting a significant transaction during the financial year, he had the audacity not to file his ITR, which is the root of the problem. If he had filed his ITR, his CA would have been able to help him address the issue. It's clear that he doesn't have a CA, doesn't file his ITR, and eventually this lack of action came back to haunt him after four years!

​

 

[Exewhyzee]

Rotation toh 100 crore ka karo toh bhi ITD ghanta kucch ukhaad nhi payega.

 

[Dr.AMAN]

Rotation toh 100 crore ka karo toh bhi ITD ghanta kucch ukhaad nhi payega.

100 crore pe IT wale nahi sidha ED wale ghar se utha le jaayenge money laundering ke case mai

 

[HumorSimpson]

100 crore pe IT wale nahi sidha ED wale ghar se utha le le jaayenge

Or some business cartel might eliminate him 💀 for the competition.

 

[niloy1994]

Usually banks mark SFT over a credit card bill payment of 10 lacs or a cash deposit of over 1 lac. How did your relatives pay you back?

Via UPI. but received in my mother bank account. Is there will be any problem ?

 

[Exewhyzee]

100 crore pe IT wale nahi sidha ED wale ghar se utha le jaayenge money laundering ke case mai

Nhi utha paayega if it's legit rotation. Touch bhi nhi kar paayega.Logo ne faaltu ki hawa banake rakkhi hai of ED & IT

 

[Dr.AMAN]

Nhi utha paayega if it's legit rotation. Touch bhi nhi kar paayega.Logo ne faaltu ki hawa banake rakkhi hai of ED & IT

ED people r much more crooked than IT people. PMLA is one of the most dangerous acts in India. They will punish first and then begin investigation afterwards to see if the punishment is right or wrong. They didnt even spare Delhi's CM despite zero proofs. Always better to play by the rule in money matters

 

[Exewhyzee]

ED people r much more crooked than IT people. PMLA is one of the most dangerous acts in India. They will punish first and then begin investigation afterwards to see if the punishment is right or wrong. They didnt even spare Delhi's CM despite zero proofs.

Delhi ka CM / other AAP arrests were politically motivated. But yes hote toh khatarnak hai woh log.

 

[HumorSimpson]

ED people r much more crooked than IT people. PMLA is one of the most dangerous acts in India. They will punish first and then begin investigation afterwards to see if the punishment is right or wrong. They didnt even spare Delhi's CM despite zero proofs.

Doc. don't scare OP. If you want to help give him a certificate that states he is mentally

 

[Pravin1156]

Recently a video posted on Taxpuram Youtube channel (Tamil) discusses about Rs.1.12 Crore Income Tax Demand Notice received by one of his clients for spend of Rs.68.97 Lakhs in AY 2020-21. * LINK TO VIDEO *

Income Tax Notice is issued under Section 156 of IT Act demanding ₹1.12 crore from one of his clients in Chennai. The person made transactions for Rs.68.97 Lakhs by Credit Card money rotation, lending card to friends and not filing returns since 2020-21. He spent Rs.68.97 lakhs using his HDFC Bank and SBI Credit cards which is treated by Income Tax Dept as unexplained expenditure u/s 69C of IT Act.

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There's another video on same case posted by Tamil Tech Youtube channel A2D Channel * VIDEO LINK *

Even though we've discussed about possible IT Notice for High Credit Card spends and even cases about receiving Notice for Credit cards, this looks like the first case with IT Demand above 1 Crore for such usages?

Kindly share your views on this and also feel free to edit this Wiki post to add more information related to this 🙏

Now this Video was deleted by Taxpuram YouTube channel. I think it's fake documents. What about your opinions TFians