Income Tax Notice On Credit Card Usage

[Imanojchoudhari]

I have a question, people take 10 credit cards from ICICI bank, so don't they get the notice? On spending 10l+ in one financial year

how do these people manage?

Even if we are filling ITR and our credit card spend cross to 10 lakhs, can we still get the notice?

And if our spending becomes 20-30 lakhs, then how much ITR should be filed?

And even if we file ITR after credit card spend is reported in IT, notice can also come.

My spending is 20 lakh + in one bank only and I am not file ITR

 

[RaviAglRaviAgl is verified member.]

I have a question, people take 10 credit cards from ICICI bank, so don't they get the notice? On spending 10l+ in one financial year

how do these people manage?

Even if we are filling ITR and our credit card spend cross to 10 lakhs, can we still get the notice?

And if our spending becomes 20-30 lakhs, then how much ITR should be filed?

And even if we file ITR after credit card spend is reported in IT, notice can also come.

My spending is 20 lakh + in one bank only and I am not file ITR

The government has recently introduced annual information statement (AIS) which provides a report of your income and expenses. Any spends greater than 10 lacs on a credit card are reported in this AIS by the bank. You can view and download this from the income tax website.

Disparity in income and expenses will attract a notice from the income tax department.

It is just a tool to help the government catch tax evaders.

If you have done nothing wrong, no need to worry.

But rethink why you should not file your ITR if you are spending more than 20 lacs per year.

Even if you are selling parental property, it is subject to capital gains tax.

Thanks!!

 

[Imanojchoudhari]

The government has recently introduced annual information statement (AIS) which provides a report of your income and expenses. Any spends greater than 10 lacs on a credit card are reported in this AIS by the bank. You can view and download this from the income tax website.

Disparity in income and expenses will attract a notice from the income tax department.

It is just a tool to help the government catch tax evaders.

If you have done nothing wrong, no need to worry.

But rethink why you should not file your ITR if you are spending more than 20 lacs per year.

Even if you are selling parental property, it is subject to capital gains tax.

Thanks!!

So notice will not come if I start filling ITR

 

[RaviAglRaviAgl is verified member.]

So notice will not come if I start filling ITR

If there is disparity in income and expense, you can expect a notice. If you file your ITR, then too.

But if you don't file your ITR and then receive a notice from the income tax department, then it will become very difficult if you cannot justify your expenses and source of income. And the consequences are fatal.

 

[Imanojchoudhari]

If there is disparity in income and expense, you can expect a notice. If you file your ITR, then too.

But if you don't file your ITR and then receive a notice from the income tax department, then it will become very difficult if you cannot justify your expenses and source of income. And the consequences are fatal.

Any solution my spending is High but I don't want any notice

 

[RaviAglRaviAgl is verified member.]

Any solution my spending is High but I don't want any notice

Pretty obvious man,

Manage your taxes and file your ITR in an honest manner. That's all.

Even if you get a notice and when you are not hiding anything, then you cannot be harmed.

Thanks!!

 

[4uziaul]

This thread is meant for you

Income tax notice for credit card spends..

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...

www.technofino.in

 

[RaviAglRaviAgl is verified member.]

This thread is meant for you

Income tax notice for credit card spends..

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...

www.technofino.in

Thanks
@4uziaul

This thread is a gem in itself. Was not aware of it as I had just joined here in March.

I have marked your post as a Solution to the OPs question. Will help you get some TF points.

Thanks and keep contributing to the community.

 

[RAMESH BABU N]

Income Tax: Income Tax keeps an eye on these 5 transactions of yours and then sends notice. - Business League

Income Tax: If you also do cash transactions then this news is for you. Actually, let us tell you that the Income Tax Department keeps an eye on these five cash transactions of yours and then sends you a notice. Even though now is the era of digital payment, but even today many people find

www.businessleague.in

 

[arunkd386]

Can i make additional payment in last month before statement generation if total spends are just above 10L?

 

[SpaceBar]

The government has recently introduced annual information statement (AIS) which provides a report of your income and expenses. Any spends greater than 10 lacs on a credit card are reported in this AIS by the bank. You can view and download this from the income tax website.

Disparity in income and expenses will attract a notice from the income tax department.

It is just a tool to help the government catch tax evaders.

If you have done nothing wrong, no need to worry.

But rethink why you should not file your ITR if you are spending more than 20 lacs per year.

Even if you are selling parental property, it is subject to capital gains tax.

Thanks!!

Any spends means a single spends greater than 10 Lacs or cards per year per bank spends 10 Lacs or total cards spends in all the banks is 10 Lacs.

 

[arunkd386]

Any spends means a single spends greater than 10 Lacs or cards per year per bank spends 10 Lacs or total cards spends in all the banks is 10 Lacs.

Per bank 10 lakh limit of bill payments in a FY

 

[RaviAglRaviAgl is verified member.]

Any spends means a single spends greater than 10 Lacs or cards per year per bank spends 10 Lacs or total cards spends in all the banks is 10 Lacs.

In my knowledge, it is total spends per card per year.

But I maybe wrong.

 

[arunkd386]

In my knowledge, it is total spends per card per year.

But I maybe wrong.

Not spends but payment. Slight difference

 

[SpaceBar]

Not spends but payment. Slight difference

Anyone can pay 90% of the bill before the statement generation date and then pay the rest 10% after getting the statement. Does this work?

 

[arunkd386]

Anyone can pay 90% of the bill before the statement generation date and then pay the rest 10% after getting the statement. Does this work?

There is no significance of statement amount. 10L ceiling is for total payment including amount paid before bill generation.