Income tax notice for credit card spends..

[Alex292929]

If not, how can anyone arrive at the total income based on 80K advance tax paid ?

where did that come from?

 

[RAMESH BABU N]

where did that come from?

Read ALL the previpus posts. We are now in page 13.

 

[Vasuki]

Thread title should be - bashing of credit card rotator.
But everyone used axis loophole be it me or majority of tf PPL who are aware of the founder himself

 

[kushhh]

Thread title should be - bashing of credit card rotator.
But everyone used axis loophole be it me or majority of tf PPL who are aware of the founder himself

Pehle loota tha axis ko 1.5% ke liye ... Ab toh level up karliya , sbi cb se niche vale card ko chhoota bhi nahi 🤣

 

[Pradumya]

I pay 3L for ulip yearly which is tax exempted

First thing is under 80C one individual can only get 1.5L exemption.
The premium you pay should be less than 10% of your sum assured if you have purchased ULIP after 1st April 2012.

returns on above 2.5 L premium ulip is not tax exempt

This change was in section 10(10D) which was the maturity amount taxation. That too has conditions. The premium payment can be.tax exempt u/s 80C if opting old regime.

And your ulip is taxable as it is >2.5L.

The limit of Rs 2.5 lakhs applies to the combined premium of all the plans bought on or after 1st Feb, 2021.

 

[Gownandha]

folks, i think i am in trouble. I had a few questions and tried searching through the site and this thread but none really answered so please forgive if something is getting duplicated by me:

i thought i was on top of it but a few spends later i realized I have ended up spending more than 10lakhs on my Axis Bank Credit Cards. (Since axis owns citi cards now, I am guessing citibank card spends will get added to axis bank card spends and get totalled together for the 10lakh limit?).

Me and my wife are self-employed as partners in a partnership that runs a non-gst (since we have <40l turnover) registered trading business. Both of us take salaries out of it. My personal salary and only source of income is between 4-5 lakhs per annum for which ITR is filed.

In the 10+ lakh spends on axis credit cards, 90% spends were for my business. The business from its current account used to pay directly into the personal credit card every month all the dues for the spends that were made on behalf of the business. I have all the records for every transaction done on behalf of the business and the payment dates.

I have stopped using both my axis and citibank credit cards till end of this financial year. Unfortunately there are a few emi spends on the axis card which will keep showing up every month till march.

Now, Financial Year 2023-2024 has not yet ended but eventually this will definitely get reported in AIS. The few questions I had:

Q1) I don't know if I will get a notice, but if I do I just want to know how can I explain the discrepancy between my personal income and the card spend. One of the replies in this thread talked about business paying personal credit card should be declared as personal income? Didn't understand it exactly.

Q2) Has anyone got a notice here? If one receives it and now they would want to know everything, does it ask one to disclose all other bank cards held and payments done on them as well? Then my total spends across all banks will cross even 20 lakhs.

Q3) Is there any accounting practice I can implement immediately to provide a better explanation when the return is filed for this financial year?

Q4) Should i continue my business spends on other non-axis non-citi credit cards to continue earning the rewards/points, or stop altogether for this financial year or permanently?

Thank you to everyone who reads this post for your valuable time. I really appreciate it and even more grateful to those who will reply.

Spending 10L+ doesn't mean you earned 10L+. So just be prepared to provide explanation if they probe into it. Usually they won't as long as you disclose the high value transactions or SFT. Last year I rotated over 40L with Amazon pay ICICI card and got a message for high value transaction. I replied saying that I took money from my credit card for personal use and was unable to repay it. So I did it again till I could repay it to avoid charges and missing the payment date. Never heard back from them in the last 1 year. My income was around 3.5LPA at that time. So even if you get one just consult with a auditor and provide a definite response. You need to pay tax on what you got as profit from those. That's all

 

[prc1990]

Spending 10L+ doesn't mean you earned 10L+. So just be prepared to provide explanation if they probe into it. Usually they won't as long as you disclose the high value transactions or SFT. Last year I rotated over 40L with Amazon pay ICICI card and got a message for high value transaction. I replied saying that I took money from my credit card for personal use and was unable to repay it. So I did it again till I could repay it to avoid charges and missing the payment date. Never heard back from them in the last 1 year. My income was around 3.5LPA at that time. So even if you get one just consult with a auditor and provide a definite response. You need to pay tax on what you got as profit from those. That's all

So basically in a way you told them that you did some back and forth transaction i.e. rotated due to some personal exigency?

 

[ccdc]

Spending 10L+ doesn't mean you earned 10L+. So just be prepared to provide explanation if they probe into it. Usually they won't as long as you disclose the high value transactions or SFT. Last year I rotated over 40L with Amazon pay ICICI card and got a message for high value transaction. I replied saying that I took money from my credit card for personal use and was unable to repay it. So I did it again till I could repay it to avoid charges and missing the payment date. Never heard back from them in the last 1 year. My income was around 3.5LPA at that time. So even if you get one just consult with a auditor and provide a definite response. You need to pay tax on what you got as profit from those. That's all

how did you rotate 40L via apay card?

 

[Gownandha]

So basically in a way you told them that you did some back and forth transaction i.e. rotated due to some personal exigency?

Yes

how did you rotate 40L via apay card?

Education fees option on cred, cheq, no broker and some orders for friends. Not only on Amazon pay icici card. I also spent around 12L on HDFC Millennia as well around that time and got notice for both.

 

[S9100]

Canara setu 'Retail CC' x Hdfc Platinum will fetch points?

No. No. No.

 

[2025]

Thread:

Thread 'Income tax notice for credit card spends..'

Mar 6, 2023

Hello everyone .

It's Rule that Bank will report transactions above 10 lacs in a year by any person to income tax authorities..

i have seen many people rotating money by rent, bills payment or selling credit cards.. well infact, I am too a part of it....

Has anyone recieved notice from ITR anytime ? i believe rotating money, card sharing for reward points/cashback is not legal?

What should be the course of action or anyone has any experience out of it..

P.S :- In last Year ITR, my AIS shows 13 lacs credit card bills payment to axis.. My annual salaried income is 10 lacs... i...

• sanju8486
• Replies: 254
• Forum: Tax

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• 
• 

Post:

Canara setu 'Retail CC' x Hdfc Platinum will fetch points?

Context?

No offense. @Daunt

 

[Daunt]

Thread:

Thread 'Income tax notice for credit card spends..'

Mar 6, 2023

Hello everyone .

It's Rule that Bank will report transactions above 10 lacs in a year by any person to income tax authorities..

i have seen many people rotating money by rent, bills payment or selling credit cards.. well infact, I am too a part of it....

Has anyone recieved notice from ITR anytime ? i believe rotating money, card sharing for reward points/cashback is not legal?

What should be the course of action or anyone has any experience out of it..

P.S :- In last Year ITR, my AIS shows 13 lacs credit card bills payment to axis.. My annual salaried income is 10 lacs... i...

• sanju8486
• Replies: 254
• Forum: Tax

• 
• 
• 

Post:

Context?

No offense. @Daunt

Oh!! My bad. I thought I was on different thread. Wasn't intentional.
Thanks @S9100 for reply. I will delete the post for relevance.

 

[S9100]

Oh!! My bad. I thought I was on different thread. Wasn't intentional.
Thanks @S9100 for reply. I will delete the post for relevance.

No need for thanks. Just give me some positive rating. Lol

 

[CardTox]

I have spent almost twice of my annual income! This is the trend for last two years, no problem so far. Note: I am a government employee and each month TDS i deducted from my salary! and I file my ITR to take refund.

 

[S9100]

I have spent almost twice of my annual income! This is the trend for last two years, no problem so far. Note: I am a government employee and each month TDS i deducted from my salary! and I file my ITR to take refund.

What was the cc payment amount reflecting is AIS?