Credit Card utilisation above 10 lakhs

[cassius]

How spends are calculated?
Sum of all credit card spends should not exceed 10L or Individual credit cards ?
For suppose i have icici credit card and hdfc. If i spend
Icici - 5L
Hdfc -5L
Do i need to pay tax ?

It's not that direct. If your annual credit card bills are above 10 lakhs and you are not filing any ITR then there is a good chance of getting a notice. Spending through CC however big isn't a crime, hiding the income is. You pay tax for your income not for your spends

 

[SSV]

Sum of all credit card spends should not exceed 10L or Individual credit cards ?

It is sum of all credit cards issued by ONE bank ..

And then you MAY get a notice.. and you have to explain where this money has come from.( if you don’t file itr and you exceeded this 10L , you are most likely to get notice..

 

[SSV]

For suppose i have icici credit card and hdfc. If i spend
Icici - 5L
Hdfc -5L

In this case you won’t get any notice

 

[Pankhuri]

I agree.



Unfortunately, I disagree.

What @Pankhuri meaned to say (that you may not have taken in) is...



IT dept person he talked to, may have exaggerated when mentioning 1cr, but Pankhuri is just a messenger when sharing his knowledge.

No he is right about this case, if u have got a notice then u are already in the eyes of IT dept, you can no longer hide by not filing. But if you are someone who earns a substantial amount of money and are not reported to IT dept(if you are salaried at a big company, IT dept already knows almost everything about you), then the best thing you can do is not file. As filing would make you enter the system and then you would have to deal with all the compliance and fines and what not.

 

[Pankhuri]

It is sum of all credit cards issued by ONE bank ..

And then you MAY get a notice.. and you have to explain where this money has come from.( if you don’t file itr and you exceeded this 10L , you are most likely to get notice..

Can someone get a notice in the middle of financial year? Or is this guy is getting a notice for last financial year? Considering that tata neu cards were launched in December last year and this guy supposedly used 10L in money rotation in just 4 months if this notice is for last financial year.

 

[SSV]

No he is right about this case, if u have got a notice then u are already in the eyes of IT dept, you can no longer hide by not filing. But if you are someone who earns a substantial amount of money and are not reported to IT dept(if you are salaried at a big company, IT dept already knows almost everything about you), then the best thing you can do is not file. As filing would make you enter the system and then you would have to deal with all the compliance and fines and what not.

I don't know what you are referring to here...
But one thing is for sure.

Whether you got notice or not, or in their watch list or not
If you earn more than the exempted amount you MUST file ITR..
You think you have escaped now, the systems are getting sophisticated and you will get caught one day by these systems amd then they serve the notice and if applicable, you will have to pay everything with interest and penalties which may be 2 to 5 times than original or even more and legal things depending upon circumstances

 

[SSV]

Can someone get a notice in the middle of financial year? Or is this guy is getting a notice for last financial year? Considering that tata neu cards were launched in December last year and this guy supposedly used 10L in money rotation in just 4 months if this notice is for last financial year.

Generally at the end of financial year..
But nothing stops ITD to serve notice at any point of time..if they have some evidence

 

[Pankhuri]

Generally at the end of financial year..
But nothing stops ITD to serve notice at any point of time..if they have some evidence

Don't the banks report at the end of financial year? I don't think they report as soon as you hit 10L spends on a card.

 

[SSV]

Don't the banks report at the end of financial year? I don't think they report as soon as you hit 10L spends on a card.

I am not talking about just this case..
I am talking about any other case

 

[cassius]

Can someone get a notice in the middle of financial year? Or is this guy is getting a notice for last financial year? Considering that tata neu cards were launched in December last year and this guy supposedly used 10L in money rotation in just 4 months if this notice is for last financial year.

Depends what notice are you talking about. If it's some old years, he may receive it anytime of the year. This guy hasn't revealed the year for which he got the message. There is a difference between receiving message on phone from IT and getting a legal notice from the department. Department persuades and reminds people in case they have missed filing through messages and emails and it is not a notice. Let him post the exact message and only then we can conclude

 

[shashankrt]

Hi guys I am a student and I have HDFC rupay credit card. During the introduction of credit based upi I found a hack which allowed me to transfer from credit card to bank account without any fees. Since I earned reward points on that I mistakenly made transaction above 10 lakhs. Today i received a message from it department for filing itr. What to do?

1. Please find a good CA and get this sorted asap.
2. Your are a student and will soon start your professional / entrepreneur life. The last thing you need is a flag by IT dept against your PAN number.
3. Take this as a lesson learnt. You will probably spend more in CA fees / penalties than the 10K tata neu points. Not sure what was the thought process for revolving 10L for gains of 10K (no one will do this unless gains are above 10%)
4. Also above will help in case HDFC also sends notice to justify your spends.

 

[ksen13]

How spends are calculated?
Sum of all credit card spends should not exceed 10L or Individual credit cards ?
For suppose i have icici credit card and hdfc. If i spend
Icici - 5L
Hdfc -5L
Do i need to pay tax ?

10 lacs bill payments in A PARTICULAR CREDIT CARD WILL CATCH IT DEPARTMENT
You have two credit cards one is icici & another one is HDFC..
LIKE agar tumne icici credit card main 5 lacs ka bill payment kar diya to tumhare pass or remaining 5 lacs bill payments ka limit hain till March 2024..
And same goes for hdfc

If you have settle credit card bills of 10,00,000 in a financial year for a particular bank then it will get reported in your AIS and if you don't file itr for that financial year IT DEPARTMENT will send you a notice in this case


Also keep in mind spend seye koi farak nahi padta ...BILL PAYMENTS SEYE FARAK PADTA HAIN

 

[prashu]

10 lacs bill payments in A PARTICULAR CREDIT CARD WILL CATCH IT DEPARTMENT
You have two credit cards one is icici & another one is HDFC..
LIKE agar tumne icici credit card main 5 lacs ka bill payment kar diya to tumhare pass or remaining 5 lacs bill payments ka limit hain till March 2024..
And same goes for hdfc

If you have settle credit card bills of 10,00,000 in a financial year for a particular bank then it will get reported in your AIS and if you don't file itr for that financial year IT DEPARTMENT will send you a notice in this case


Also keep in mind spend seye koi farak nahi padta ...BILL PAYMENTS SEYE FARAK PADTA HAIN

Understand. now i have to calculate my bill payments in icici. I have been rotating 70to 80k every month in icici credit card. I have to be carefull

 

[raghu.rokda]

Also keep in mind spend seye koi farak nahi padta ...BILL PAYMENTS SEYE FARAK PADTA HAIN

I don’t understand this statement…
For example If you spent 10k….then you have to pay cc bill payments of 10k..
Then what is the difference?

 

[SSV]

I don’t understand this statement…
For example If you spent 10k….then you have to pay cc bill payments of 10k..
Then what is the difference?

Payments made between 1 April to 31 March …
Statements can be generated at anytime and spends also can be anytime…
But the payments only count as per the wording of the law

 

[aayusharyan]

I don’t understand this statement…
For example If you spent 10k….then you have to pay cc bill payments of 10k..
Then what is the difference?

If I spend 15 Lacs in Mar 2023. I pay 7.5 Lacs in Mar 2023 itself and remaining 7.5 Lacs in Apr 2023. Then technically the payments have been made on separate FY, so SFT won't be reported I think.

 

[aayusharyan]

Also, getting an SFT report on Income is not a big thing. I mean, you have a certain Lifestyle, you earn, you spend. As simple as that. It's just a mechanism where banks want to keep tabs that whether this money that you are making is tax paid or not and they decided that anything above 10L in CC Bill payments should be a good trigger point.

 

[prashu]

Understand. now i have to calculate my bill payments in icici. I have been rotating 70to 80k every month in icici credit card. I have to be carefull

I spent 5.6L in ICICI in 5months 🫢

 

[SSV]

Payments made between 1 April to 31 March …
Statements can be generated at anytime and also spends also can be anytime…
But the payments only count as per the wording of the law

. . .

 

[raghu.rokda]

If I spend 15 Lacs in Mar 2023. I pay 7.5 Lacs in Mar 2023 itself and remaining 7.5 Lacs in Apr 2023. Then technically the payments have been made on separate FY, so SFT won't be reported I think.

If I generate statement of 100 only..
And in between..daalna and nikalna also counted?

And if i pay cc payment from payzap wallet not bank account/dc, then it is also counted..