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(Caution) Check your AIS. Banks have reported high value Credit Card spends for FY22-23.

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CREDITDATA said:
Is there proof to show that they transferred money online to you ?

As cash transactions above 200k

Please note that as per the present provisions of tax laws in case a person accepts any gift beyond Rs. two lakhs in cash, he may become liable to a penalty equal to the amount of gift accepted in cash. So avoid accepting gifts beyond two lakhs in cash.

Be very careful about all this as to cover one mistake you may incur more and get into a trap
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Don't have proof , which shows money coming from relatives account or parents account....
But can't i say that i have used my previous year savings to pay the bills ?
 
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Shivashankar said:
Will the payment made on add on card also be reported in our PAN card ?
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Depends on the reporting bank if bank marked all add on cards under your PAN Card , its reported in your PAN Card alone or they updated add on persons pan card also , then they reported both individual PAN Cards under both AIS but you can mark this payment on different PAN Card on AIS response tab.
 
Indian said:
Depends on the reporting bank if bank marked all add on cards under your PAN Card , its reported in your PAN Card alone or they updated add on persons pan card also , then they reported both individual PAN Cards under both AIS but you can mark this payment on different PAN Card on AIS response tab
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I have kotak card and while applying for add on card they have taken my father's Pan card and aadhar card copy so in that case the payment made for Add on cards will be counted towards his PAN card right?
 
Shivashankar said:
I have kotak card and while applying for add on card they have taken my father's Pan card and aadhar card copy so in that case the payment made for Add on cards will be counted towards his PAN card right?
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Add on card is also called SUPPLEMENTARY , so you shared your ownership with your father, which means tax liability , repayment and other norms are you both responsible! Your father credit card spending are reported on both of the PAN in AIS or reported on only your PAN Card it depends on the reporting bank , however you can mark your add on cards transaction not yours under AIS Preliminary response tab. So I hope you can understand you cannot hide your card transactions ( above 10lakhs) even though you shared your card limit as add on cards.
 
Does only cc payment is considered not cc spends. Consider if convert my cc spends to emi. Also sometimes merchant will refund the amount for cancelled order. We need to consider that too while calculating the threshold
 
gowmara said:
Does only cc payment is considered not cc spends. Consider if convert my cc spends to emi. Also sometimes merchant will refund the amount for cancelled order. We need to consider that too while calculating the threshold
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No specific instructions as such mentioned by the ITD.

This is the bare text form section 285BA section read with rule 114E.

"
Payments made by any person of an amount aggregating to—
(i) one lakh rupees or more in cash; or
(ii) ten lakh rupees or more by any other mode,
against bills raised in respect of one or more credit cards issued to that person, in a financial year."
"

From a plain reading, it can be interpreted that they are referring to payments made against the credit card bill. However, a bank can adopt a different approach and consider the total purchases made in a financial year in its calculation. We don't have any case law yet to get a proper analysis of the text.

As a safe approach I will suggest that one should make sure that
1) Their Debit transactions are under 10L, ignoring any reversal of that debit transaction.
2) Total Amount of Bills raised during the year is less than 10L
3) Total Credits(Payments) are under 10L.

It's worth noting that your income should ideally match your expenses. If you can justify your expenses and have a legitimate source of income to cover them, you should not have to worry about such reporting.
 
simplewarrior said:
No specific instructions as such mentioned by the ITD.

This is the bare text form section 285BA section read with rule 114E.

"
Payments made by any person of an amount aggregating to—
(i) one lakh rupees or more in cash; or
(ii) ten lakh rupees or more by any other mode,
against bills raised in respect of one or more credit cards issued to that person, in a financial year."
"

From a plain reading, it can be interpreted that they are referring to payments made against the credit card bill. However, a bank can adopt a different approach and consider the total purchases made in a financial year in its calculation. We don't have any case law yet to get a proper analysis of the text.

As a safe approach I will suggest that one should make sure that
1) Their Debit transactions are under 10L, ignoring any reversal of that debit transaction.
2) Total Amount of Bills raised during the year is less than 10L
3) Total Credits(Payments) are under 10L.

It's worth noting that your income should ideally match your expenses. If you can justify your expenses and have a legitimate source of income to cover them, you should not have to worry about such reporting.
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Financial year is 1st April-31st March. So payments/debits will be as per that only, right? Statement date won't matter.

And if there are items like free lounge accesses and fee reversals, we should count them also to be safe side?
 
Harry1 said:
Financial year is 1st April-31st March. So payments/debits will be as per that only, right? Statement date won't matter.

And if there are items like free lounge accesses and fee reversals, we should count them also to be safe side?
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As per my knowledge, you can open your monthly statement from Apr till March and see total monthly credits. It should be less than 10l to be on safer side. Free Lounge access doesn't have impact
 
Harry1 said:
Financial year is 1st April-31st March. So payments/debits will be as per that only, right? Statement date won't matter.

And if there are items like free lounge accesses and fee reversals, we should count them also to be safe side?
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Yes, Apr-Mar will be considered, but then again it will be upto each bank for to decide whether they will include payments against Mar 23 bill into FY 23-24 since payment for Mar 23 bill made in FY 23-24 only.

There is simply not enough data to come for a conclusion.

One who has received such reporting in his AIS can calculate what transaction,reporting dates etc the bank has taken into account while calculating the amount. But then that will reveal the calculation method of that bank only.

As I said, to be on safer side I would not count any reversal of any debit transaction.
 
Just because something has been reported in AIS doesn't necessarily mean tax notice. Often entries are double counted in AIS.

Guess only those PPL who mindlessly rotated money between cc and bank account will have to worry especially if the AIS report is significantly higher than ITR.

For others it's ok and relax. Even if Bank reports say 14 lakh in AIS and the ITR is 30 lakh it's fine
 
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