Credit card spend for friends purchase and bill payment query

[Patil007]

Hi Guys,

I want to use my credit card to buy friend his mobile of 50K and he will give me money back via UPI (GPay) and I will pay the bill from my bank account.

But, The 50K amount came on my bank account record, will it impact on my Tax liabilities? Will be there any issue while filling ITR?

Can we justify this to Income Tax department these kind of transactions if required.

Please suggest.

 

[Patil007]

@Chaitanya-a @pprakash11 @Batmanbaba @Wealth is my birth right!

 

[VISHESH_BANSAL]

Hi Guys,

I want to use my credit card to buy friend his mobile of 50K and he will give me money back via UPI (GPay) and I will pay the bill from my bank account.

But, The 50K amount came on my bank account record, will it impact on my Tax liabilities? Will be there any issue while filling ITR?

Can we justify this to Income Tax department these kind of transactions if required.

Please suggest.

AFAIK, No Impact.

 

[imdjay]

I personally don't think 50k is going to be under scrutiny.
the case can be different if you are in the 30% bracket and have too many such transactions.

 

[Saipsy]

IT = income tax
do not worry about the cash flows, as they are not your income

 

[Wealth is my birth right!]

Hi Guys,

I want to use my credit card to buy friend his mobile of 50K and he will give me money back via UPI (GPay) and I will pay the bill from my bank account.

But, The 50K amount came on my bank account record, will it impact on my Tax liabilities? Will be there any issue while filling ITR?

Can we justify this to Income Tax department these kind of transactions if required.

Please suggest.

Not a big deal
This will not fall into IT issues
U can get a copy of invoice from ur friend for record purposes

 

[Patil007]

Great to know

 

[Avangerritesh]

And what happens if my friend pays back the same amount in my credit card. Will it create any issue?

 

[pprakash11]

And what happens if my friend pays back the same amount in my credit card. Will it create any issue?

You will loose 1% of HDFC Bill Pay lol

 

[Batmanbaba]

If u use this credit card less.... Best is to take cash and pay the bill physically from bank.... Till 1 lakh per year is not reported to bank if u pay by visiting branch.

 

[Avangerritesh]

If u use this credit card less.... Best is to take cash and pay the bill physically from bank.... Till 1 lakh per year is not reported to bank if u pay by visiting branch.

But i heard that bank charges some fees for paying via cash for credit card.

 

[Batmanbaba]

But i heard that bank charges some fees for paying via cash for credit card.

Not every bank