Got income tax notice for credit card spends

[friends2b11]

I have placed various orders from Flipkart with Flipkart Axis Bank credit card and after buying those orders sold them outside at lower prices.I gave the outside shopkeeper a lower price than the prize I bought.But since I got five percent cashback, I got some profit and not loss.

Besides, I have ordered many things for friends & family.(Your annual fee is waived off if you spend a certain amount on your credit card and clear the amount on time. )

Besides credit card payment showed deposit for which I have already replied with bank statement.And all the deposits were made by myself and no money was sent to anyone.

Can I now tell the income tax department that I used to run a cyber cafe and have customers there and for them I bought these things with my credit card.
Income tax department has asked me for credit card statement and which I will send them.
But income tax asked me about the payment I sent and their details and PAN number but I don't have any details.

And yes I have been filing regular income tax for 3-4 years and I show that my income is less than 5 lacs in the year.
And since I didn't file income tax on time I also paid 1000 late payment fee.


I got this notice from it dept-

Please refer to the notice under section 133(6) issued from this office and the subsequent reply made by you. Please note that as per
the Trading & Profit and Loss Account furnished by you, the total sales is Rs.18,xx,xxx/- whereas as per information, your total
payment by credit card amounts to Rs.25,xx,xxx/-. So you are requested explain the issue and submit the details of the person
(including PAN and Contact number) for whom the payment has been made. You are also requested to submit the credit card
statement for the F.Y. 2020-21. You are requested to comply within xx/xx/2023.
Response to the letter can be furnished through Compliance Portal only.

I have done a lot of shopping with credit cards for the rest of the years but since I paid the income tax on time I didn't get the notice.
Income tax notice was sent to me because I did not fill the income tax in that year but after sending the income tax notice I paid the income tax with late payment free.

To the first notice I have given the reply in due time and this is the second notice that I have been questioned again.
Now how do I give the reply to the IT department yes I will send the cc statement but how do I tell them can someone explain me so that I can give the reply properly.




the original notice which I received two to three months ago.At that time I had not filled ITR for that year and I was asked to fill revised ITR and I filled ITR with late payment fee ( 1000 INR ).

And I gave answers to the questions that were put to me and I also sent my trading PL statement statement and bank statement.

But today I got another reply to that notice.


Remaining year ITR-4 is already filed and business name is ABC Trading & Online
Nature of bussiness shown in ITR- Electronic Goods and Accessories

But since my card got canceled in the last month, I didn’t get the cashback that I earned in last month, so I didn’t have any money in my pocket.”

“The cash pack of the last month was so much more than the first two months”.So since I didn’t get the last match cashback, ultimately the cashback I earned for the first two months is no longer in my pocket.

 

[chasni]

forgery and misleading govt agency should be IPC 420 /NAL. others you can find in MITC of every bank's credit card page.

I was referring to manufactured spend and money rotation. It may be prohibited under MITC but not under IT. Unless you have a source that says otherwise.

 

[thanix]

OP have a cash deposit of 16.5L. Credit card expense (repayment) is 25L. How much deposits in bank account through non cash (cheque, wire tansfer, online)? Guess it should be at least 11L to show 3L net profit/income if entire thing is considered business income-expense.

What is the figures ITR filed with?

Edit: Just saw total sales of only 18L. Why then profit/income of 3L shown instead of loss.

 

[Deleted member 11974]

classic whataboutism. you are like the woke uncles and aunties who get caught in trains travelling without tickets, and when asked for paying a fine, ask the TTE to first collect crores in fine from biggies like Mallya then come to them to ask for a fine.

accountability is a must
banks who have burnt their hand in cases like Mallya rip off retail customers by increasing interest rates in the name of repo rates.
whats more absurd is that the govt allows them to do this.
anyone who has a fair bit of financial knowledge knows that if not for rbi banks cant justify selling loans at 12% for which the funding costs them 0.2%

anyways to each his own, you can evade IT dept and revolt against the taxation policies as much as you want, but giving others advise on how to do it on a public platform is criminal. elect better candidates next time and then get the taxes lowers legally rather than stealing from the govt and be a burden on other taxpayers.

coming to this part,
there are many bigger criminals out there who if the govt were competent enough would catch them and bring them to justice.
but I am saddened by the fact that you belive that values like democracy, and justice exist.
in todays world it all has been a facade corruption,vote bank ,appeasement politics
The fact that you beleive that if you vote your voice will be heard and things will become alright is the biggest clown moment
infact the govt thrives on people like you who try to silence other people when asked for accountability of actions

 

[Deleted member 11974]

and if op in his sound mind takes advice from this forum and is held accountable for his actions so be it
he knew what he was doing ahd he shall pay the price for the same

 

[Predator]

cash deposits bellow 50k is not reported to IT right? since it doesnt need pan number to deposit bellow 50k

Here cash is deposited directly to his CC account and he needs to prove that cash is clean and from bondafide sources.
As Credit Card is not a account to park your deposit, so more probability of ppl using black money this way

 

[Predator]

accountability is a must
banks who have burnt their hand in cases like Mallya rip off retail customers by increasing interest rates in the name of repo rates.
whats more absurd is that the govt allows them to do this.
anyone who has a fair bit of financial knowledge knows that if not for rbi banks cant justify selling loans at 12% for which the funding costs them 0.2%

coming to this part,
there are many bigger criminals out there who if the govt were competent enough would catch them and bring them to justice.
but I am saddened by the fact that you belive that values like democracy, and justice exist.
in todays world it all has been a facade corruption,vote bank ,appeasement politics
The fact that you beleive that if you vote your voice will be heard and things will become alright is the biggest clown moment
infact the govt thrives on people like you who try to silence other people when asked for accountability of actions

This man woke up and chose to speak nothing but facts

 

[Arun Pratheep]

Here cash is deposited directly to his CC account and he needs to prove that cash is clean and from bondafide sources.
As Credit Card is not a account to park your deposit, so more probability of ppl using black money this way

What about neft credits to account. Does this get reported to IT?

 

[Deleted member 11974]

accountability is a must
banks who have burnt their hand in cases like Mallya rip off retail customers by increasing interest rates in the name of repo rates.
whats more absurd is that the govt allows them to do this.
anyone who has a fair bit of financial knowledge knows that if not for rbi banks cant justify selling loans at 12% for which the funding costs them 0.2%

coming to this part,
there are many bigger criminals out there who if the govt were competent enough would catch them and bring them to justice.
but I am saddened by the fact that you belive that values like democracy, and justice exist.
in todays world it all has been a facade corruption,vote bank ,appeasement politics
The fact that you beleive that if you vote your voice will be heard and things will become alright is the biggest clown moment
infact the govt thrives on people like you who try to silence other people when asked for accountability of actions

ask any 50 year old person who has worked in the private sector
the amount of tax he has paid in india
had he been in dubai compound the tax money at even 10% he would have been a millionaire by now with access to way better infrastructure,better quality of life
so to even say that oh how will we fund the infrastructure, old political parties ne yeh kiya voh kiya
you can play victim the whole day
but at the end of the day it is the tax paying common man who has suffered

 

[shsinha]

Now IT gets all details. You check the AIS in income tax portal and you will find that all income even small amount of saving interest/dividend/rent etc gets recorded. IT uses lots of means to get information to track abnormal transaction, money laundering etc and it is difficult to justify anything incorrectly. Better to hire CA and tell details correctly to IT. CA can help you present the information in the right way.

 

[ltf4ever]

accountability is a must
banks who have burnt their hand in cases like Mallya rip off retail customers by increasing interest rates in the name of repo rates.
whats more absurd is that the govt allows them to do this.
anyone who has a fair bit of financial knowledge knows that if not for rbi banks cant justify selling loans at 12% for which the funding costs them 0.2%

coming to this part,
there are many bigger criminals out there who if the govt were competent enough would catch them and bring them to justice.
but I am saddened by the fact that you belive that values like democracy, and justice exist.
in todays world it all has been a facade corruption,vote bank ,appeasement politics
The fact that you beleive that if you vote your voice will be heard and things will become alright is the biggest clown moment
infact the govt thrives on people like you who try to silence other people when asked for accountability of actions

you calling the voting process and belief in democracy a clown moment shows your mentality. either go to a country that has low taxes and accountability, or stay in this country and change it either via voting correct people to power or entering the system yourself. but don't give unsolicited gyaan on how stealing from a democratically elected govt is noble and how our country is hopeless.

in your own words, just like banks are forced to increase interest rates for good customers because of the losses on customers like frauds. govt is forced to increase tax rate because of tax stealing enthusiasts like you.

and forget about financial knowledge, anyone with a basic understanding of mathematics will know that loan interest rate depends not just on cost of funds but also is a summation of risk profiles of the market and individuals.

being a keyboard warrior will not bring revolution or eradicate fraud politicians, but casting a vote might.

 

[Predator]

ask any 50 year old person who has worked in the private sector
the amount of tax he has paid in india
had he been in dubai compound the tax money at even 10% he would have been a millionaire by now with access to way better infrastructure,better quality of life
so to even say that oh how will we fund the infrastructure, old political parties ne yeh kiya voh kiya
you can play victim the whole day
but at the end of the day it is the tax paying common man who has suffered

Some people love to live in illusion that politicians work for them, and their vote matters. The government is the biggest thief and caters only to a specific group of ppl which helps them to come to power again.

 

[Predator]

you calling the voting process and belief in democracy a clown moment shows your mentality. either go to a country that has low taxes and accountability, or stay in this country and change it either via voting correct people to power or entering the system yourself. but don't give unsolicited gyaan on how stealing from a democratic is noble and how out country is hopeless.

in your own words, just like banks are forced to increase interest rates for good customers because of the losses on customers like frauds. govt is forced to increase tax rate because of tax stealing enthusiasts like you.

and forget about financial knowledge, anyone with a basic understanding of mathematics will know that loan interest rate depends not just on cos of funds but also is a summation of risk profiles of the market and individuals.

being a keyboard warrior will not bring revolution or eradicate fraud politicians, but casting a vote might.

Full faith in democracy but there must be a democratic process at first.
just look at how democratic governments are giving contracts worth crores to their own people, all funded by taxpayers money.
A bridge made of 1700 crore by democratic process, collapses in a second. Everyone in the Hierarchy pocketed the money.
Too much Democracy here to handle

 

[ltf4ever]

ask any 50 year old person who has worked in the private sector
the amount of tax he has paid in india
had he been in dubai compound the tax money at even 10% he would have been a millionaire by now with access to way better infrastructure,better quality of life
so to even say that oh how will we fund the infrastructure, old political parties ne yeh kiya voh kiya
you can play victim the whole day
but at the end of the day it is the tax paying common man who has suffered

go to Dubai and enjoy your freedom under their perfect govt then. India me rehke deemak ki tarah Desh ko andar se khokhla mat karo.

 

[chasni]

go to Dubai and enjoy your freedom under their perfect govt then. India me rehke deemak ki tarah Desh ko andar se khokhla mat karo.

And it arrived on time.

 

[Predator]

go to Dubai and enjoy your freedom under their perfect govt then. India me rehke deemak ki tarah Desh ko andar se khokhla mat karo.

strong words.
Maybe you belong to that specific privileged group that the government caters to and do not want to lose the benefits.

 

[ltf4ever]

Full faith in democracy but there must be a democratic process at first.
just look at how democratic governments are giving contracts worth crores to their own people, all funded by taxpayers money.
A bridge made of 1700 crore by democratic process, collapses in a second. Everyone in the Hierarchy pocketed the money.
Too much Democracy here to handle

I agree and I am not a happy person when I have to pay my taxes. but who is going to fix the democracy? any outside agency? it's us who will have to do that right? and it will not happen unless we stop giving vote for note, or not giving our share of taxes because 'system kharab hai'.

all the problems that you mentioned, is saving on your contribution to taxes the solution?

 

[Predator]

go to Dubai and enjoy your freedom under their perfect govt then. India me rehke deemak ki tarah Desh ko andar se khokhla mat karo.

Dubai nhi Europe me bhej do bhai, vha chla jauga

 

[Predator]

I agree and I am not a happy person when I have to pay my taxes. but who is going to fix the democracy? any outside agency? it's us who will have to do that right? and it will not happen unless we stop giving vote for note, or not giving our share of taxes because 'system kharab hai'.

all the problems that you mentioned, is saving on your contribution to taxes the solution?

We can fix the country only by asking Right questions to right People at Right time.
This attitude of 'leave the country then' will not fix the country

 

[Predator]

I agree and I am not a happy person when I have to pay my taxes. but who is going to fix the democracy? any outside agency? it's us who will have to do that right? and it will not happen unless we stop giving vote for note, or not giving our share of taxes because 'system kharab hai'.

all the problems that you mentioned, is saving on your contribution to taxes the solution?

And your vote does not matter bro. Because Jitne vote power me aane k liye chahiye vo Daaru+ Chicken see mil jaate hai
(which again is funded by taxpayers money)

 

[ltf4ever]

We can fix the country only by asking Right questions to right People at Right time.
This attitude of 'leave the country then' will not fix the country

then do that, ask the right questions to those responsible - that's what I am asking here. but instead, people are talking about how not to pay taxes.

Dubai nhi Europe me bhej do bhai, vha chla jauga

xywowow se bolo intezaam karne ke liye...saare countries me kab kaise millionaire bante hai pata hai use....aur tax bacha bacha ke itna Paisa toh bana hi liya hoga wo ki tum dono ka Europe immigration fund kar sake.