Income tax notice for credit card spends..

[TheMentalist]

My Credit Card spends crossed 25 lakhs from SBI and kotak
During House construction last year i have rotated money by for 6 months from both cards as i required lot of money for construction purpose as Housing loan took lot of time to get processed and i also availed personal loan on credit card which even that was included on card spends ,This years in AIS report banks reported 26 lakhs received for credit card as payment
I receive some money from my brother who is NRI to clear loans , and i even have own business running with Annual turnover of 35 lakhs and ITR filied is for 7 lakhs

Will i receive notice on 25 lakhs credit card payment and as per above information what can i do if i receive notice

That was meant for business transactions, receipts and expenses in a business are shown in ITR. But here you have a personal expense of house construction which needs to be dealt separately, kindly contact CA for this

 

[VISHESH_BANSAL]

true - that the reason even though i don't do Ek ka do and do ka teen, i'm been using excel from last 2+ yr since using cc daily for businesfor example-

date	Transcation	Amount	Pay by	Dr/Cr
1st	Jio Recharge		SBI Cashback	Dr
1st	xxxxx		Amazon Pay Balance
2nd	xxxxx		Current	Dr
2nd	xxxxx		Cash	Dr
2nd	xxxxx		UPI/Current	Dr
3rd	xxxxx		Cash	Cr
4th	xxxxx		HDFC Tata Neu	Dr
5th	xxxxx		HDFC Tata Neu	Dr
5th	xxxxx		HDFC infinia	Dr
5th	xxxxx		Amazon Pay Balance
6th	xxxxx		HDFC Tata Neu	Dr
6th	xxxxx		Saving	Dr
8th	xxxxx		HDFC Tata Neu	Dr
9th	xxxxx		HDFC Infinia	Dr
10th	xxxxx		HDFC infinia	Dr
7th	xxxxx		Current	Cr
14th	xxxxx		ICICI Plantium	Dr
14th	xxxxx		Amazon Shopping Voucher Balance	Dr
14th	xxxxx		SBI Simplyclick	Dr
15th	xxxxx		ICICI Plantium	Dr
16th	xxxxx		AMEX MRCC	Dr
18th	xxxxx		SBI Cashback	Dr
17th	xxxxx		SBI Cashback	Dr
20th	xxxxx		SBI Cashback	Dr
19th	xxxxx		SBI Cashback	Dr
19th	xxxxx		SBI Cashback	Dr
19th	xxxxx		Current	Cr
19th	xxxxx		Current	Cr
19th	xxxxx		Saving	Cr
19th	xxxxx		Saving	Dr
19th	xxxxx		Saving	Cr
20th	xxxxx		Current	Dr
20th	xxxxx		Current	Dr
20th	xxxxx		Current	Dr
21st	xxxxx		SBI Simplyclick	Dr

Aisa karne ke liye ek peaceful mind ki Requirement.hoti hai.

Jo CC to Bank karne waale in High volume unki toh raato ki neend udi padi hai🤣

Notice aayega ki nhi aayaega
Aayaega toh kya kare kya na kare🤣

Jo dimaag CC to Bank karne m lgaya agar wahi dimaag padhai likahi m lagaya hoto toh CC to Bank ya Rotate karke rozi roti na kamani padti.

Ghar waale gaaliya dete hoge "ghaar ka bhoj" iska mtlab yeh thodi hai CC to Bank karke Ghar ka bhoj halka karoge.

If I am a CA m phle m JUDO KARATE MARTIAL ARTS ki training leta aur phir Practice un rotaters pe karta jo merse help mang ne aate

 

[nitba]

Don't be oversmart did you know why you aren't a CA aur vese bhi CA ke liye padhai karni hoti h hawa bazi nhi 😂😂😂

Aur vese bhi age tumne cc to bank nhi Kiya to konsa teer maar liya vese bhi sabko ghr ki rooti todna pasand nhi h samajh me aai
😂😂😂😂

 

[nitba]

@vaibhav111 i have told my issue to my brother and help of my brother i meet with his friend who is ITO in income tax told everything about my issue he said first of all bhai ye tumhari akele ki problem nhi h ye number bhot high h qki aj kl hr kisi ko bank credit card issue kr deti h aur Jane anjane log benefits k chakkar me ye Sb krte hi h baaki tumne koi crime nhi Kiya but ab ye mat krna dobara aur aese hi koi jail me nhi daal deta hai aur jb bhi tumko notice aye joki nhi Ane wali aur agr aaye to tum Jo sach h vo boldena baaki CC UPI trnx h to don't worry ye abhi new h

 

[Pra]

Does anyone know that the spends made by add-on cardholders are considered for primary or are considered for add-on cardholder (from view point of income tax department )?

 

[4uziaul]

Indeed it is considered.

 

[Pra]

Indeed it is considered.

For whom addon or primary?

 

[4uziaul]

For whom addon or primary?

Obviously Primary, it's your card and it will reflect on your account.

 

[Hoozy]

Let me repost one of my comments from another similar thread...

- You better start looking for a top tier CA who can probably justify your spends and somehow match income and expenses.

Don't want to sound negative but why would you do so much spends when your income is less than your spends (1/5th in your case). Were the rewards really worth it?

As far as the IT notice goes it can take upto 7 years for them to send you one. When it does you better have explanation ready for your numbers else tax penalty can go as high as 60% of expenses and in your case that would be in the ballpark of 25/30 Lakhs.

I have being spending more than 15lac in just 4 months on my dad’s business regalia. All spend are mostly commercial such as income tax , GST payments, etc. Will he receive a income tax notice?
(Ps:- credit limit is only 4L)

 

[COmM4nDer]

I file my ITR every year. Will I be liable to a notice if I spend 10lkhs in a financial year from CC spends from 5-6 different banks CC & those spends are mostly made & paid by a relative who has a buisness.

 

[Deleted member 11974]

thats not how it works
if your ais of cc spends report 40 lakhs of cc bills but you file an income of 4 lakhs questions will be raised.
but as long as you can explain where you got the funds where did the funds go it wont be a problem
because indians dont understand this.
NOT ALL BANK CREDITS ARE TAXABLE
AND NOT ALL BANK DEBITS ARE TAX DEDUCTABLE

 

[COmM4nDer]

thats not how it works
if your ais of cc spends report 40 lakhs of cc bills but you file an income of 4 lakhs questions will be raised.
but as long as you can explain where you got the funds where did the funds go it wont be a problem
because indians dont understand this.
NOT ALL BANK CREDITS ARE TAXABLE
AND NOT ALL BANK DEBITS ARE TAX DEDUCTABLE

So you mean to say as long as CC spends dont show in my AIS everything is fine?

 

[Deleted member 11974]

So you mean to say as long as CC spends dont show in my AIS everything is fine?

no
i mean to say as long as you can account for every single rupee spent and earnt on paper you have nothing to worry about

 

[NShah]

thats not how it works
if your ais of cc spends report 40 lakhs of cc bills but you file an income of 4 lakhs questions will be raised.
but as long as you can explain where you got the funds where did the funds go it wont be a problem
because indians dont understand this.
NOT ALL BANK CREDITS ARE TAXABLE
AND NOT ALL BANK DEBITS ARE TAX DEDUCTABLE

So it's 10l per card in a year?

 

[COmM4nDer]

no
i mean to say as long as you can account for every single rupee spent and earnt on paper you have nothing to worry about

So I can tell the relative to keep all the high value transaction payment copies

 

[Deleted member 11974]

So I can tell the relative to keep all the high value transaction payment copies

yes do that if done in cash
if transferred to bank shouldnt be a problem as IT can track bank transactions

 

[Deleted member 11974]

So it's 10l per card in a year?

10L per bank card if i am not wrong

 

[SSV]

I file my ITR every year. Will I be liable to a notice if I spend 10lkhs in a financial year from CC spends from 5-6 different banks CC & those spends are mostly made & paid by a relative who has a buisness.

1) If CC spends on all the cards held by a particular Bank crosses 10L , then it will be reported by that Bank to ITD and presented in AIS.

2) this doesn't necessarily mean that you get any notice.
3) If you get a notice , then you need to substantiate the transactions..

 

[SSV]

So it's 10l per card in a year?

See above post 👆 👆

 

[SSV]

I file my ITR every year. Will I be liable to a notice if I spend 10lkhs in a financial year from CC spends from 5-6 different banks CC & those spends are mostly made & paid by a relative who has a buisness.

Another case , when it will be reported in AIS is:

If you pay CC bill by cash and it exceeds 2L 1L, in this case also it will be reported in AIS.
This is also ,for all cards held in a particular Bank