Hey bro! I shopped for my home+ myself+ friends. So technically it reached 14L and just filled my itr today
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(Caution) Check your AIS. Banks have reported high value Credit Card spends for FY22-23.
- Thread starter moriarty
- Start date
As a thumb rule, one needs to understand that the Income-tax Dept wants to make sure that all the income is accounted for and the tax has been paid on it. In your given scenario, the IT dept May issue you notice. But, at the end when you will give the PAN card details of your friends along with the entry of their accounts showing they paid for you, and the bill for it, etc. Then in that scenario, the IT officer will know that he might need to pull out your friend's data and check whether they had sufficient income to justify that kind of Spending.
So worst come to worst IT dept may give your advice not to do it in the future but practically they can't stop you from doing it and you can continue to do it.
Golden Rule: Have proper accounting done for all the expenses.
Even for my expenses like clothing and stuff whenever I swiped my card, I made sure that my friends used to pay that and I gave cash to them.
And, What's your ITR return is?
CA filed approximately of 4.3L
If you mind can I dm you?
All my bills are paid through my friends account mostly so does jt count in proper accounting?
Hey! I would recommend you write it in the forum only. The reason is so that everyone would know about the taxation part and how that can affect the CC consumer's life.
We talk about card reviews points to airline miles and what not? But we forget to talk about the compliance part where govt(IT dept) comes into the picture. I wanted to talk about it and I want to know if any member of this community has received any notice so far for the explantation of the expenses on the Credit card.
In fact, I would request the Moderators to create a thread for the IT implication and how one could save themselves with proper accounting. Why should one stop themselves from spending 20 or 30 or 50 lacs on their cards? They want to earn points and that is totally fine with the bank, too. Banks make money on your every transaction. So govt should not play the spoil sport and be like that you can't do it.
I believe the only thing that would give more clarity on this topic will be the people who have been served notice and how did they manage to have proper replies for it.
So briefly, My CA filed the itr today and he said don't worry much nothing's gonna happen, want you to throw some light on his words. Should I really not worry?
All I would say is to keep your accounting proper. In that way you are safe.
IT Dept issues notice to ask you to explain the things which don't seems to add up. If you can explain then don't worry. If you can't then no matter which CA says not to worry, you have to worry.
But in the end, you are getting worried about something which may or may not happen. So the best bet is to have an explanation ready for major transactions.
So Let's say if your spending on you CC is 25 lacs and you filed and ITR of 4.3. You should be ready to explain the difference amount of these two( 25-4.3= 21.7 Lac) So as long as you have the explanation( Bills, Account transaction number, Friends and Family pan card details) No need to worrry.
I'm having explanation as all my friends used and paid the amounts.
Then just keep a record of it on an excel sheet. Of the payments made, payment received, Their account statement, your account statement, Their Pan Card details etc.
Ummm I'll try collecting.
When it comes down to the IT dept there is no trying. You Either have the trial and explanations for your expenses or else pay the taxes along with fines and penalties. SO their calculation should be clear to the T. What can't be proved is considered your income and you will be charged accordingly.
Yeah I'll definitely call up all the guys who paid my bills and will ask for transaction numbers and their pans and stuff.
What if the money was transfered by wife and it was spend on family expenditure
See, as long as there is an explanation and no tax has been evaded there is no issue.
What do I mean by explanation?
Paper trail/ Digital trial of where money was spent and where did it come from.
Those who want to see their AIS without hassle of password remembering and url forgetting pls install app
I provide ss of app and once u login by pin the next screen FY wise where to navigate.
Now keep cool if you’re having paid card bills less than ITR filed not even required to spend time on checking AIS lol
Real pain for categories who took card by C2c method with lesser income (even though magnus need 18lac pa) and did monthly 1lac myntra and bought gold then sell it and pay Magnus card bill and close friend/sibling took ur credit card for a foreign trip spent 3 to 5lac then after return gave money to u.
Pro tip:
If u get notice then create the spent income as inheritance from blood relatives with help of a CA Or trusted third party sources to show up for IT dept
Last line about my experience
I used to play with cards for successive 17 years so far not even an year I didn’t spend more than the income and no notices so far
I provide ss of app and once u login by pin the next screen FY wise where to navigate.
Now keep cool if you’re having paid card bills less than ITR filed not even required to spend time on checking AIS lol
Real pain for categories who took card by C2c method with lesser income (even though magnus need 18lac pa) and did monthly 1lac myntra and bought gold then sell it and pay Magnus card bill and close friend/sibling took ur credit card for a foreign trip spent 3 to 5lac then after return gave money to u.
Pro tip:
If u get notice then create the spent income as inheritance from blood relatives with help of a CA Or trusted third party sources to show up for IT dept
Last line about my experience
I used to play with cards for successive 17 years so far not even an year I didn’t spend more than the income and no notices so far
I am not saying he did cc rotation but basically a lot of people here have used there credit card to load there wallets (paytm wallet , airtel money, payzapp ,amazon pay etc) then transferred it to their bank accounts and when the cc bill is generated they pay it back using there bank account and do it all over again to get points and milestones
Soo even when one does not have a lot of income they can just rotate the money and its shown as they have used a lot of cc which they paid of using there bank account now every one is worried that income tax dep will come after them
A lot of people here don’t understand how accounting for it works soo they are afraid
brother you need to understand most people here don’t understand how accounting work that include admins and moderators even myself comming from a commerce background it’s difficult to wrap my head around these things especially tax laws