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(Caution) Check your AIS. Banks have reported high value Credit Card spends for FY22-23.
- Thread starter moriarty
- Start date
yes even i have done this last year, amount isn't the same but the value is, the thing that person who used your card would show that transaction as an expense. and you won't take that expense cause only debit would show not credit in your bank a/c cause you didn't pay the bill. now let your notified your CA he would come up with something.
ok ....do keep up posted
CARDBITRAGE
TF Legend
Thanks. It worked after I did this.
rushaboswal
TF Buzz
I have a bit different query. I have two CC's and the total spends on both of them was around 6 lakhs + my investment was around 3 . My salary is only 35000 (I do have a good chunk of money in recieables from a single party). Now out of the 6 most spends are for shop purposes (Hosting, shipping, themes plugins , and card offers) , which is reimbursed by my dad (Also shown the same in ITR). around 1 is electricity bill i pay of the society of live in (Again shown in ITR). Will this be a problem going forward. None of my bills are paid in Cash.
Since your declaring most of your expenses and reimbursements in your ITR and your card payments are not exceeding 10 lakhs, you should be in the clear. Even if you get an enquiry (which most likely you wont) your CA will file a reply on your behalf explaining the situation and the matter should be resolved there itself.
I am no CA but from my understanding here how it works and you probably don’t need to worry if you are being reported even when you have done credit card rotation to earn points what credit card rotation is essentially taking a loan to pay off another loan(note loan is not a income) people do this all the time i am not saying it a good thing to do but rather the opposite but people do it all the time
Here is another example lets say you are an unemployed person and have no money at all(nalla) but still in order to survive you need food clothing and shelter so you take loans from your friends and family and spend it all for partying because you are that stupid still when you file the itr you still have no income just a loan and some friends and family you need to hide from for eternity
Important
the only thing you need to do is file an ITR and let them know that the thing you have bought trough the card is not from the income but by taking a loan
If you have more income than you have spent then simply no worries sit back and relax as long as you have paid taxes on that income
The only thing you need to worry about is in case due to some mishap in your life you are not able to rotate the money and can’t immediately pay off the credit card bill then its not the it department that will be after you but rather the bank and court that will be breaking your ass
Here is another example lets say you are an unemployed person and have no money at all(nalla) but still in order to survive you need food clothing and shelter so you take loans from your friends and family and spend it all for partying because you are that stupid still when you file the itr you still have no income just a loan and some friends and family you need to hide from for eternity
Important
the only thing you need to do is file an ITR and let them know that the thing you have bought trough the card is not from the income but by taking a loan
If you have more income than you have spent then simply no worries sit back and relax as long as you have paid taxes on that income
The only thing you need to worry about is in case due to some mishap in your life you are not able to rotate the money and can’t immediately pay off the credit card bill then its not the it department that will be after you but rather the bank and court that will be breaking your ass
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have always done that
Yes its justifiable but I suggest not coming in the income tax department eye as when the put in an inquiry they won’t just ask for this one thing but rather scrutinise every thing and will even point out the petty mistakes you may have done unknowingly it will be a hassle so rather avoid it
Not sure if this was intended sarcastically but this isn't correct..
Income tax department tracks PAYMENTS made into the card in a financial year and that is what is reported in the AIS by the banks. Even if a third person directly clears the bills directly into his card, the notice will still be received by the card holder (linked with PAN number) if the total amount crosses 10 lakhs and the income is not matching to that.
Paying bills by others directly into the card is not a loophole that will escape the attention of the Income Tax Department!
True. It seems people think IT dept is a joke. Wait till your file is opened. They will make you cry.
Thanks for this thread. Just checked and i have three reports from cc spends of axis magnus, hdfc infinia and rbl totalling 47 lakhs which never used to happen until now. Good feature by income tax, now all manufactured spends by people who pay less taxes will come down.
For me, only the axis reported around 12.5 L.
According to my spending, it was around 11.5. I guess they included refunds as well.
Hdfc and ICICI cards are not reported yet(both have 12L+)
My income after taxes would cover 70–75% of the total amount (including HDFC and ICICI).
I had taken a loan in the last FY, which is way more than (4x) the balance 30%.
There have been no notices so far.
My CA said he would handle that, but the paperwork would be a bit difficult.
They have to explain each month's card statement in layman's terms to the IT department.
Also, keep all statements and invoices for the next 3–4 years, even if they don't issue a notice this year.
All of these spends were genuine, but I guess I could have divided them among other bank cards a bit more to avoid the 10L threshold.
Magnus and 1% flat cashback of Amazon ICICI(offline gold purchases) was too tempting 😅
According to my spending, it was around 11.5. I guess they included refunds as well.
Hdfc and ICICI cards are not reported yet(both have 12L+)
My income after taxes would cover 70–75% of the total amount (including HDFC and ICICI).
I had taken a loan in the last FY, which is way more than (4x) the balance 30%.
There have been no notices so far.
My CA said he would handle that, but the paperwork would be a bit difficult.
They have to explain each month's card statement in layman's terms to the IT department.
Also, keep all statements and invoices for the next 3–4 years, even if they don't issue a notice this year.
All of these spends were genuine, but I guess I could have divided them among other bank cards a bit more to avoid the 10L threshold.
Magnus and 1% flat cashback of Amazon ICICI(offline gold purchases) was too tempting 😅
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Lol last line amazed me. How can u compare magnus with Amazon icici😅. A 68% return card (on 1L Myntra vouchers) with 1% return card🤣.
After Magnus and SBI Cashback Card, I don't even look at 2-3% returns.