About ITR on spending Limit.

[𝙇.𝐊. 𝐓𝗶𝘄𝗮𝗿𝗶 :)]

Can anyone help me regarding my concern?

Like there is a spending limit of 10L per year according to the inconme taxx for not producing/filling the ITR.
Can anyone please confirm that is this 10L limit is each on a single Credit card, prepaid card. OR This is total combine limit for all total bank credit cards or prepaid cards?

please share your all knowledge on it.
Everyone that know better of it and have full understanding of it, please confirm this.!

 

[thunderbolt]

If you spend 10L+ in a year using cards of single bank then it will be reported under SFT to IT department.

 

[Wealth is my birth right!]

If you spend 10L+ in a year using cards of single bank then it will be reported under SFT to IT department.

However if u have a filed ITR of income above 10l u won’t get any notice

 

[Rohith_Kumar_Sp]

However if u have a filed ITR of income above 10l u won’t get any notice

yeah but isn't that lying? what if my Income is 5L per year and spend 9L?

 

[Wealth is my birth right!]

yeah but isn't that lying? what if my Income is 5L per year and spend 9L?

3 lac u spend exceeding your income may be IT ask for source and once u show source u should pay tax for that 3lac

 

[Rohith_Kumar_Sp]

3 lac u spend exceeding your income may be IT ask for source and once u show source u should pay tax for that 3lac

I bought a phone of 1.3L and I paid medical bills of my wife for 40k both of with wasn't from my money, parents LIC matured and they gave me 1.3L to buy phone as a gift. And wife's medical insurance is with her mom, her mom sent me the insurance money, so technically around 2L was given to me but it's not my income. I don't understand why do I have to pay taxes on amount which already have taxes deducted, relative sending me a medical insurances that's claimed is not an income isn't it? LIC amount which matured which my parents paid with GST and taxes which they sent me can't be income again for which I have it pay taxes? That's like. Paying taxes for the same thing. Over and over.

 

[Wealth is my birth right!]

I bought a phone of 1.3L and I paid medical bills of my wife for 40k both of with wasn't from my money, parents LIC matured and they gave me 1.3L to buy phone as a gift. And wife's medical insurance is with her mom, her mom sent me the insurance money, so technically around 2L was given to me but it's not my income. I don't understand why do I have to pay taxes on amount which already have taxes deducted, relative sending me a medical insurances that's claimed is not an income isn't it? LIC amount which matured which my parents paid with GST and taxes which they sent me can't be income again for which I have it pay taxes? That's like. Paying taxes for the same thing. Over and over.

No tax implications in the scenarios mentioned above
Even for bigger amount also inheritance from blood relative is exempted only that we should present all documentation if asked later

 

[Rohith_Kumar_Sp]

No tax implications in the scenarios mentioned above
Even for bigger amount also inheritance from blood relative is exempted only that we should present all documentation if asked later

Yes if I'm using my card to pay for all those and getting money from relatives or family to pay them off, how would they'd differenciate it from wallet rotations?

 

[Wealth is my birth right!]

Yes if I'm using my card to pay for all those and getting money from relatives or family to pay them off, how would they'd differenciate it from wallet rotations?

If that’s the plan spend for them and ask them to pay bill from their account
This is to avoid cash hitting ur account

 

[Rohith_Kumar_Sp]

If that’s the plan spend for them and ask them to pay bill from their account
This is to avoid cash hitting ur account

The whole reason I'm doing it with card is so that I can points. Also didn't have money for phone or medical bills at the time of buying the phone or when admitted to hospital so had to use the card. But isn't that the WHOLE point of credit card? Wtf?

 

[anirban.choudhuryanirban.choudhury is verified member.]

The whole reason I'm doing it with card is so that I can points. Also didn't have money for phone or medical bills at the time of buying the phone or when admitted to hospital so had to use the card. But isn't that the WHOLE point of credit card? Wtf?

I don’t think you need worry so much
An old friend who worked with IT department once told me, the It dept doesn’t have the required manpower to scrutiny all account , they don’t even look at individual account having less than 50 lakh turnover , that was way back in 2014 , May be they have increased now 😀

 

[starstruck]

I don’t think you need worry so much
An old friend who worked with IT department once told me, the It dept doesn’t have the required manpower to scrutiny all account , they don’t even look at individual account having less than 50 lakh turnover , that was way back in 2014 , May be they have increased now 😀

Thats not true now bro. My housewife mother ( with income less than 5L) got scrutiny from IT dept because we bought another flat (worth less than 50L) and she was registered as co-owner.

I think they now scrutinise more easily because all the data is now linked with PAN & Aadhar and their algorithms can detect income inflow/outflow discrepancies. They are looking at purchases too that can be tracked to people.

 

[Rohith_Kumar_Sp]

Thats not true now bro. My housewife mother ( with income less than 5L) got scrutiny from IT dept because we bought another flat (worth less than 50L) and she was registered as co-owner.

I think they now scrutinise more easily because all the data is now linked with PAN & Aadhar and their algorithms can detect income inflow/outflow discrepancies. They are looking at purchases too that can be tracked to people.

I mean 50L FLAT is a lot higher than 2-3L cash rotation.

 

[Wealth is my birth right!]

I mean 50L FLAT is a lot higher than 2-3L cash rotation.

But that 50l is having a catch I mean I did a 15l deposit for 8 months then closed it
In the AIS report of that fin yr it’s reflecting as 30l not sure how my bank reported it
So if this like things happen we will easily touch 50l here and there

 

[starstruck]

I mean 50L FLAT is a lot higher than 2-3L cash rotation.

The point is not on 50L number. The point is that IT can get data easily, scrutinise +- and there is no fixed number basis which they will look at. Obviously, 2-3 L is small but if a person has 0 income, it would be easier for their algo to flag it even if they choose to not follow through on it.

 

[TheMentalist]

The point is not on 50L number. The point is that IT can get data easily, scrutinise +- and there is no fixed number basis which they will look at. Obviously, 2-3 L is small but if a person has 0 income, it would be easier for their algo to flag it even if they choose to not follow through on it.

But such algo scrutinies are also faceless mostly, they ask you to respond in ITR Compliance portal only (sometimes giving options to select also)