Ideally no. But Card provider can block your card and ban you from getting card again.
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Can someone get IT notice for Rotating Credit?
- Thread starter Navin192
- Start date
There's nothing illegal about rotating money via CC. But the problem will arise when you get notice. You have to explain each and every entry in the bank account to the ITO. It will be time consuming.
Amit Dhatrak
TF Buzz
That’s good. If I ever figure out a way, I’d be more than happy to give sometime to IT too😂
The question of legality will arise only if the amount itself is large.
India has presumptive income scheme, so if a proprietor makes say 50L in revenue in cash/online transactions in a financial year, they can claim it made 8% profit on that revenue, making their taxable income 4L and hence 0 income tax. Ofcourse this presumptive tax is only available to predefined category of businesses, but unless you are rotating lakhs of rupees a month, you need not worry about the transactions.
ps, I know someone who does exactly that, rotates 60-80k a month since last 1+ year with 0 problem.
