Clarification regarding cc spend on non personal use

[sam4]

Is there any guideline laid by itdept to not use cc for non personal use? If we use cc to pay for business use or electricity bill of company and exact same amount credit in to savings account of card holder or directly in to cc from company or business account then any problem in respect to itdept. I know from bank perspective they can cancel the credit card but what about tax liability? Any insight is appreciated.

 

[basant]

can business regalia card be used for business expenses officially?

 

[VISHESH_BANSAL]

https://www.axisbank.com/docs/default-source/default-document-library/card-member-agreement.pdf

have a look at section 7.2

This is for Axis, for other Banks find yourself.

 

[sam4]

https://www.axisbank.com/docs/default-source/default-document-library/card-member-agreement.pdf

have a look at section 7.2

This is for Axis, for other Banks find yourself.

I know about credit card issuer, but what about tax implications?

 

[VISHESH_BANSAL]

I know about credit card issuer, but what about tax implications?

Tax implications are simple.
You have to pay tax on what you earned.

Suppose you purchased a Mobile Phone for a friend for 20k , then ask your friend to do online transfer from his Account to your account and then pay CC Bill.
Upon any Scrutiny you can proof easily, that 20k was not spent out your income instead you received a Online transfer from a friend.

Same is applicable for other spends.

You just need to keep proper records of sources from where you are doing repayments to Credit Card.

For salaried, it is quite easy but for a self employed It is quite a big task

 

[bhavik886151]

Is there any guideline laid by itdept to not use cc for non personal use? If we use cc to pay for business use or electricity bill of company and exact same amount credit in to savings account of card holder or directly in to cc from company or business account then any problem in respect to itdept. I know from bank perspective they can cancel the credit card but what about tax liability? Any insight is appreciated.

I confirmed with my CA and i am using these method that if the business is proprietorship or partnership firm and you are one of the partner then you can use your cc for the business transaction and transfer same amount from business bank account to cc.

 

[Mr. Aman]

can business regalia card be used for business expenses officially?

yes the are

 

[basant]

yes the are

there are lot of business expenses. if we pay thru business regalia , why hdfc will not block card?
clarity regarding these not mentioned anywhere.

 

[Mr. Aman]

there are lot of business expenses. if we pay thru business regalia , why hdfc will not block card?
clarity regarding these not mentioned anywhere.

look at this u can do business expenses through business credit card