Income Tax Notice for Debit Card & Credit Card spends more than Income.

[hellobois]

I am presenting a few scenarios for your views. Please let me know which one will attract income tax notice -

Please note that in all the cases, the yearly spend is more than the annual income. There is a mix of Debit card and Credit card spends. Debit card spends include wallet load and bank account load only, credit card bill payment is under genuine spends. CC to Bank includes UPI via CC and wallet load.

@Abhishek012

 

[hellobois]

Scenario 1:				Monthly	Yearly
Previous savings in bank account		500000
Income per month				50000	600000
Genuine spends				25000	300000
Debit card usage (for reward/cashback only)	50000	600000
Credit card to Bank rotation			25000	300000
Total Income + previous savings -		1100000
Total expenses (genuine + fake) -		1200000
Excess spend over income+savings -		100000

 

[hellobois]

Scenario 2:				Monthly	Yearly
Previous savings in bank account		900000
Income per month				50000	600000
Genuine spends				25000	300000
Debit card usage (for reward/cashback only)	100000	1200000
Credit card to Bank rotation			0	0
Total Income + previous savings -		1500000
Total expenses (genuine + fake) -		1500000
Excess spend over income+savings -		Nil

 

[hellobois]

Scenario 3:				Monthly	Yearly
Previous savings in bank account		1200000
Income per month				50000	600000
Genuine spends				25000	300000
Debit card usage (for reward/cashback only)	100000	1200000
Credit card to Bank rotation			25000	300000
Total Income + previous savings -		1800000
Total expenses (genuine + fake) -		1800000
Excess spend over income+savings -		NIL

 

[luciferlucifer is verified member.]

I think for cc as long as it does not goes above 10lac per bank you are good.
for debit card rotation i think 50k is fine per month for any person.

this is my personal opinion only

 

[Tosh]

I would advise stay away from any kind of rotation/fake spends it's seriously not worth the headache that might come your way if spotted. Few thousand points vs mental peace pick is yours.

Just my 2 cents.

So long your AIS don't have spends reported which you cannot justify I don't think you'll be asked for any clarification or come under scrutiny.

 

[Trust Me]

So long your AIS don't have spends reported which you cannot justify I don't think you'll be asked for any clarification or come under scrutiny.

What happens if the AIS shows fantastic figures (e.g. for time deposits) that they (CBDT as well as the reporting Banks) cannot justify?! Is it still the taxpayer who is responsible? .