🤣. My magnus didn't had that much limit ☹️.
Disclaimer - my spends are about 50-60% of my income.
Yes, but there should be proper justification or a legitimate source of funds. And I'm guessing that the people on this forum are typically not the kind that spend 2x their income and pay only the minimum amount due. 😅
🙂 If wishes were horses
isi swarnim mauke pe ek line yad aata he;
Wishful thinking: the art of sprinkling glitter on your dreams and pretending they'll magically come true, because reality is just too boring
Sahi galat ki baat kaun kar raha hai shriman, yaha to IT notice ki baat ho rahi on credit card spends upto a certain level. Confuse ho gaye kya?
In General, there are no issues with all of the above but if anything is being done to evade taxes and not show your income that could be an issue. MY suggestion is to always keep your accounts ready for the big transactions. It will help you to reply in case you get a notice from IT to show the source of the particular transaction and how is that not your income and so shouldn't be taxed.
Well in common Paralace if the sum total of all your transactions is more than 10 Lac with a particular bank( Axis/ Hdfc/ other) It will be reported to the IT department. But, one doesn't need to worry if their income is higher than their expenses or if they have proper accounts to show whether the extra expense is not part of their income. For Eg, one did an expense of 4 Lac on behalf of their company and later on, got reimbursed. Now, you might have an annual income of Rs 3 Lac only, but you can simply show that the expense is done on behalf of the company and the company paid it back to you. So it's not part of income.
Yes this is true.
Yes, that is true. If the income can match up or is more than the expense there is never a problem. In the other scenario where income<expense on CC then one needs to just do the proper accounting. In the event of notice one just needs to explain the source.
1 Lac applies to cash transactions. So a payment of CC which is done by the mean of using Cash to settle the bill will be reported in your AIS under the relevant sections.
One has to only worry to keep an accounting or if they couldn't explain their income or they have unaccounted income which they didn't file return for and is relfecting in their Bank account/ investment or in any other form.
Well, that could usually happen because the bank ends up including 1 month before April and 1 month after April. So to make it easy for you to understand: let's say your billing cycle is from the 18th of each month. So for the month of April 2022 cycle, they will include the bill of another 12 days( 18th March to 31st March also) and the same goes for the end of the financial year( 1st of April to 18th of April).
Hey Yogesh! Could you please explain how the expenses mounted to 10-12 lakh and what are the source of your income? Or is it that you are buying stuff for other people?
No, How does that matter? If you even stop spending on it. IT may get in touch with you for what you have done. They don't care whether you have stopped doing that in the future. As I said in the other post also keep a proper accounting of big Expenses. And their source, you will always have an answer to the show Cause notice given by the Income Tax to explain everything.
A sole prop. Is owned by an individual so the Pan Card number is the same only. You wouldn't be having another credit card on the name of business.
That is true to an extent. But, if one wants to keep a record of it they need to get a gift deed signed along with the amount mentioned and the Same is reported in the ITR filing.
Even if you don't have an income you should ideally file a Zero income return or the return which doesn't lead to tax.