AIS & Credit Card Usage Notice

[raghu.rokda]

Bhai thread dekh nahi kholega 🤣 🤣 🤣

Dekh liya bhai
Itna misuse v ni karna hai
Bas annual fee waiver k liye kholna chahta hun

 

[tanujsheoran]

Lagta hai Vijay malya bhi usse hi inspire tha 😛

uski income hi cashback se aati h

 

[raghu.rokda]

uski income hi cashback se aati h

Or Vijay Mallya ki income bank k rokda k byaj se aati hai
Use itne transaction ni karne padte

 

[tanujsheoran]

Dekh liya bhai
Itna misuse v ni karna hai
Bas annual fee waiver k liye kholna chahta hun

Got income tax notice for credit card spends

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...

www.technofino.in

 

[FINOKAKA]

@gopal sharma bro update dete rehena kya ho raha hai humlog bahut tension mai hai bole too dhak dhak ho raha hai

 

[Aquarius]

This is insane

 

[MrNik]

kuch nahi hota.
fear not.
bas sach ka rasta pakdo aur chal pado.
jo kiya usse kuch seekha aisa socho.
aur baaki sab ko b kuch seekhne ko mila aisa baki sab smjho

 

[Harshal4]

My father is policeman and he filled itr of 8 lakh. I am using my father pnb rupay credit card for reward purpose,i opened a 1 merchant account in bob bank and by using bob account i do a daily transaction of 1lakh ruppe from my father pnb rupay cc by upi.the amount i recived in my account i returned in the same credit card at same day,by continue doing this i paid nearly 56 lakh of credit card but bill always generated in 1000 or 2000 only,is this reported in ais portal if this reported what should i do,should i save myself? Kyunki papa bahut marengey,and mein itr fill nhi krta mere current account mein 40 lakh amd saving account mein 56 lakh ka transaction hain from april 2023... please help me

Edit/Update:
In this pnb credit card, my statement is in negative but payment and other charge is more than 23 lakh, will it report on ais
View attachment 30760

Hi bro,
I saw this just now. I think there should not be any problem with the IT department if these transactions are really just Money Roatation. There is no Income here except for the Reward points. Most of the people on this forum are afraid of this kind of notice because most CA's scare the shit out of you so they can charge good money. If this is really money roatation, you just have to explain this to IT department, they are familiar with these kinds of cases as you are not alone who does this. If you are able to convince them that this is just money rotation (which is not so hard since all the transactions are digital and no cash is involved), IT department will just ask you to pay taxes on the reward income you earned and you will be sorted.

 

[NOOBY]

Hi bro,
I saw this just now. I think there should not be any problem with the IT department if these transactions are really just Money Roatation. There is no Income here except for the Reward points. Most of the people on this forum are afraid of this kind of notice because most CA's scare the shit out of you so they can charge good money. If this is really money roatation, you just have to explain this to IT department, they are familiar with these kinds of cases as you are not alone who does this. If you are able to convince them that this is just money rotation (which is not so hard since all the transactions are digital and no cash is involved), IT department will just ask you to pay taxes on the reward income you earned and you will be sorted.

are you sure ?

 

[Harshal4]

are you sure ?

Yes. The money rotated is not income or sales. Just because you used paytm/phonepe merchant account, does not make it sales. IT department can only charge tax on "Income", here the only income is reward points. Now it will be a bit hectic to explain all this to IT dept since his CA will have to 1st prepare his accounts which will take some time given the number of transactions but it is easily possible. This guy is not the only one who does money rotation.

 

[RAMESH BABU N]

are you sure ?

I too feel so. As these transactions and the income had come to him in THIS FINANCIAL YEAR. He needs to submit his ITR by June 2024 (for this year) including this reward/income. There will not be much of a problem - except to explain the things to ITD - that too online. No personal hearing or meeting anyone in person. Fully online reply and request for condonation. Being a minor amount, ITD might take it lightly and accept the explanation and condone.

This is what I had already wrote earlier in this thread. Heavens will not fall. Nothing to worry. Avoid doing such silly, stupid and idiotic things in future. First know the rules and regulations and then play the game. One can't play tennis without knowing the relevant rules. Even if you are an expert in Cricket, you first need to know and follow their rules. It is the same with financial play. Be it ITD, Stock Market, Betting, Horse Racing, Lotteries.... simple rule - know the rules in and out, play as per them and PLAY SAFE.

 

[NOOBY]

Yes. The money rotated is not income or sales. Just because you used paytm/phonepe merchant account, does not make it sales. IT department can only charge tax on "Income", here the only income is reward points. Now it will be a bit hectic to explain all this to IT dept since his CA will have to 1st prepare his accounts which will take some time given the number of transactions but it is easily possible. This guy is not the only one who does money rotation.

I too feel so. As these transactions and the income had come to him in THIS FINANCIAL YEAR. He needs to submit his ITR by June 2024 (for this year) including this reward/income. There will not be much of a problem - except to explain the things to ITD - that too online. No personal hearing or meeting anyone in person. Fully online reply and request for condonation. Being a minor amount, ITD might take it lightly and accept the explanation and condone.

This is what I had already wrote earlier in this thread. Heavens will not fall. Nothing to worry. Avoid doing such silly, stupid and idiotic things in future. First know the rules and regulations and then play the game. One can't play tennis without knowing the relevant rules. Even if you are an expert in Cricket, you first need to know and follow their rules. It is the same with financial play. Be it ITD, Stock Market, Betting, Horse Racing, Lotteries.... simple rule - know the rules in and out, play as per them and PLAY SAFE.

Interesting, I hope people does not take it positively and start rotating 🤣

 

[RAMESH BABU N]

Interesting, I hope people does not take it positively and start rotating 🤣

Who can stop if someone wants to do silly, stupid n idiotic things ? There are dozens of options in which money can be made in a better, safe n tension-free way.

 

[NOOBY]

There are dozens of options in which money can be made in a better, safe n tension-free way

Please start video-series/podcast/blogs, would follow for sure!

 

[aceventura]

Yes. The money rotated is not income or sales. Just because you used paytm/phonepe merchant account, does not make it sales. IT department can only charge tax on "Income", here the only income is reward points. Now it will be a bit hectic to explain all this to IT dept since his CA will have to 1st prepare his accounts which will take some time given the number of transactions but it is easily possible. This guy is not the only one who does money rotation.

Dont know about rewards, but pure cashback or credit against statement redemption is considered under income from other sources. If it exceeds 50K, then the total income is subject to tax.

 

[aceventura]

My father is policeman and he filled itr of 8 lakh. I am using my father pnb rupay credit card for reward purpose,i opened a 1 merchant account in bob bank and by using bob account i do a daily transaction of 1lakh ruppe from my father pnb rupay cc by upi.the amount i recived in my account i returned in the same credit card at same day,by continue doing this i paid nearly 56 lakh of credit card but bill always generated in 1000 or 2000 only,is this reported in ais portal if this reported what should i do,should i save myself? Kyunki papa bahut marengey,and mein itr fill nhi krta mere current account mein 40 lakh amd saving account mein 56 lakh ka transaction hain from april 2023... please help me

Edit/Update:
In this pnb credit card, my statement is in negative but payment and other charge is more than 23 lakh, will it report on ais

And PNB has not detected this behaviour? Wow.

 

[Deleted member 11974]

And PNB has not detected this behaviour? Wow.

completely expected from a bank like PNB
pathetic tech infra
lack of transaction monitoring
no wonder nirav modi was able to do what he did with pnb

 

[Harshal4]

Dont know about rewards, but pure cashback or credit against statement redemption is considered under income from other sources. If it exceeds 50K, then the total income is subject to tax.

Why not business income? The volume of transaction is such that it becomes business activity along with that his intention was to earn profit, that makes it Business Income. Also credit card rewards (cash or otherwise) received on genuine spends are considered a discount on purchase and is not income, so they're not taxable anywhere

 

[aceventura]

Why not business income? The volume of transaction is such that it becomes business activity along with that his intention was to earn profit, that makes it Business Income. Also credit card rewards (cash or otherwise) received on genuine spends are considered a discount on purchase and is not income, so they're not taxable anywhere

I am not a CA. But if declares this as business income, then should he not state what business he is conducting, and accordingly file for GST if applicable?

Also, they are two entities in his case, the merchant account is in his name but the CC belongs to his father, thus the cashback is also his father's, no?

Also credit card rewards (cash or otherwise) received on genuine spends are considered a discount on purchase and is not income, so they're not taxable anywhere

When I search for tax implications on cashbacks, I see several articles differentiating between instant cashbacks or discounts and deferred cashbacks. While the former is not taxable, they claim to consider the latter as gifts and if aggregate is greater than 50K including any other gifts in that FY, they imply that the whole amount is taxable

Reference: https://tax2win.in/guide/taxation-of-cashback

 

[Deleted member 11974]

I am not a CA. But if declares this as business income, then should he not state what business he is conducting, and accordingly file for GST if applicable?

not for revenue below 20L

Also, they are two entities in his case, the merchant account is in his name but the CC belongs to his father, thus the cashback is also his father's, no?

yes