Income tax notice for credit card spends..

[BMR]

As long as ur filed ITR for that FY is more than 10l then nothing to think of

Do you know when is this information populated in the AiS ?

I think I’ve spent close to 9.95 lac on axis cards , or maybe beyond 10 lac , so I have stopped using them since a month. So I am curious to know if I get reported by axis.

 

[CA Karan Agarwal]

Do you know when is this information populated in the AiS ?

I think I’ve spent close to 9.95 lac on axis cards , or maybe beyond 10 lac , so I have stopped using them since a month. So I am curious to know if I get reported by axis.

Due date for filing SFT returns by bank is 30th June of every year. So you will get the info in AIS when bank files that return with the income tax department.

You can add up total payments of your card from April to till date and check your annual spends by yourself.

 

[gulatideepti6]

Loan on credit card is not considered as spend right as i have taken loan from Cc to pay off the open balance of cc. Is IT not check how much loan is open against the PAN card as i have to take many loans to pay off cc bills

 

[Wealth is my birth right!]

Loan on credit card is not considered as spend right as i have taken loan from Cc to pay off the open balance of cc. Is IT not check how much loan is open against the PAN card as i have to take many loans to pay off cc bills

Yes IT dept concerns with assets only not liabilities

 

[gulatideepti6]

Yes IT dept concerns with assets only not liabilities

If any notice comes up than its my job to tell them i have loans on me right ?

 

[Wealth is my birth right!]

If any notice comes up than its my job to tell them i have loans on me right ?

If ur account shows a PL credit of 10lakhs then dept ignores it from their scrutiny they not even take this 10l for scrutiny
Just an example

 

[gulatideepti6]

If ur account shows a PL credit of 10lakhs then dept ignores it from their scrutiny they not even take this 10l for scrutiny
Just an example

PL stands for ??

 

[Wealth is my birth right!]

PL stands for ??

Personal loan and loan on cc
Banks will have a credit code for those which IT dept knows

 

[kushhh]

Due date for filing SFT returns by bank is 30th June of every year. So you will get the info in AIS when bank files that return with the income tax department.

You can add up total payments of your card from April to till date and check your annual spends by yourself.

Do i have to worry about if i have done high value education transactions in a year

 

[jack333]

Due date for filing SFT returns by bank is 30th June of every year. So you will get the info in AIS when bank files that return with the income tax department.

You can add up total payments of your card from April to till date and check your annual spends by yourself.

Bro this 10 lakh is per financial year or till June?

 

[Wealth is my birth right!]

Bro this 10 lakh is per financial year or till June?

FY bro not till June

 

[CA Karan Agarwal]

Do i have to worry about if i have done high value education transactions in a year

can you pls elaborate the nature and amount of transactions? school college fees over 1L is getting reported now a days. there is TCS on amount transferred for foreign education etc etc

 

[Vaastav]

FY bro not till June

Is the limit of 10L/Year per Card If We have Multiple cards of Same Bank?? Like If We have 3 Cards It's 10L For Each Card??

 

[Wealth is my birth right!]

Is the limit of 10L/Year per Card If We have Multiple cards of Same Bank?? Like If We have 3 Cards It's 10L For Each Card??

No it’s 10l for one bank
No of cards no matter if multiple they will add together with cust id

 

[Vaastav]

Rent is just a small portion of my 1-2 lacs ...
Basically spends are buying in Amazon gift cards of approx 20-25 lacs per year, e bills 6-8 lacs and then miscellaneous cb sharing deals...

I read Somewhere That You Can Show These Transactions Under Section 44AD Of Income Tax :- https://learn.quicko.com/section-44ad-income-tax

Say You Bought 10k Amazon Gift Card at 5% And Sold Them at 2% Your Profit is 3% i.e 300. But Under Section 44AD, Digital Transactions are deemed at 6% and Cash Transaction are Deemed at 8% And You don't Need to Maintain any Account Books. Now For Above Example :- 6% Of 10k i.e 600 will be your Deemed Income and You'll be taxed at 600 Even Though Your Profit was 300. Transaction Upto 2 Cr Come Under 44AD and After that Audit is necessary.

Now If You Want to Show 3% i.e 300 (Your Real Profit) as income then You Would have no option but to opt for Audit. So it's upto you whether you want to take hassle of Auditing or Just show it as 6% without maintaining any books.

Other Members Can Tell If The above Thing is Valid or not.

 

[kushhh]

can you pls elaborate the nature and amount of transactions? school college fees over 1L is getting reported now a days. there is TCS on amount transferred for foreign education etc etc

It's about 4-5 lakhs , all are domestic i did it monthly for about 1 lakh each month

 

[Strange]

No it’s 10l for one bank
No of cards no matter if multiple they will add together with cust id

Some people were saying that combined limit is 10L. For example if I spent 5L from Axis, 3L from ICICI and 2L from HDFC then it will get reported to AIS or not?
Banks report in AIS till 30th June for the financial year i.e. 1st Apr to 31st Mar or Apr-June?

@CA Karan Agarwal can you clarify this?

 

[CA Karan Agarwal]

It's about 4-5 lakhs , all are domestic i did it monthly for about 1 lakh each month

If the payments are supported by your ITR then you need not worry. I can say for sure that It authorities have limited staff and can't scrutinize all the ITRs manually but major expenses which are disproportionate to the income offered to tax can trigger an enquiry with the risk management system. In any case with justifiable response, AO can drop the case without any tax liability. So don't worry

 

[akshayhs]

Personal loan and loan on cc
Banks will have a credit code for those which IT dept knows

Most banks will also have a prefix to indicate it's a personal loan. For example, HDFC adds PL to the transaction message and the same reflects in the account statement as well.

 

[CA Karan Agarwal]

Some people were saying that combined limit is 10L. For example if I spent 5L from Axis, 3L from ICICI and 2L from HDFC then it will get reported to AIS or not?
Banks report in AIS till 30th June for the financial year i.e. 1st Apr to 31st Mar or Apr-June?

@CA Karan Agarwal can you clarify this?

Its always per bank limit of 10L because income tax authorities do not get info unless bank reports it in SFT returns which is filed for 1 PAN if transactions cross 10L per bank. So different bank card payment will not be clubbed don't worry.


AIS data is reported April to March but the last date to complete this reporting by bank is 30th June.