Income Tax Notice on credit card usage!!

[Sachs]

I have heard that if you spend more than 10 L on a credit card in a year, the CC company is required to report it to income tax department.
I have a alot of cards whose maximum benefit I have calculated after watching technofino videos. I have also used yaper recently & I have realized that they have created a safe system (albeit a very hassle filled one for credit card users.)
I was wondering what will happen if I spend 9.5L on all of my 11 cards. Will I be served a notice because I have spent 104L on my cards.
OR
Will I be not served any notice as my spending on any card has not crossed 10 L??

 

[bhushan0101]

If you did receive it how do you even value rewards earnings? They're not monetary.

Even the value depends highly on the redemption.

You can convert rewards value in monetary term as per your normal usage. If you can explain it properly then everything possible.

 

[gurbina]

You can convert rewards value in monetary term as per your normal usage. If you can explain it properly then everything possible.

Yeah... I don't know how this is managed, but guessing it is a bad idea, not sure about how the assessment office will take it without supporting evidence. Anyhow I thought they would ignore these rewards unless they're monetary.

Anyhow found this article related to that, however I can't read it

Loyalty points on credit card, wallet money not to attract TDS

Tax Deducted at Source will apply only on rewards come from business or profession

www.thehindubusinessline.com

 

[Quiksilver27]

this is what its about.. @gurbina

 

[anishdacool]

The chances are very less. However inorder to be extra safe you can avoid spending more than 10 lacs on 1 bank's card to avoid SFT reporting and IT office will not get the data of your spends

Does the 10L limit apply to prepaid cards too?

 

[RAMESH BABU N]

Logically speaking, yes.
Probably, the PPI issuers/managers also must have got suitable instructions to fall in line... Or else....

 

[anujdit]

I have heard that if you spend more than 10 L on a credit card in a year, the CC company is required to report it to income tax department.
I have a alot of cards whose maximum benefit I have calculated after watching technofino videos. I have also used yaper recently & I have realized that they have created a safe system (albeit a very hassle filled one for credit card users.)
I was wondering what will happen if I spend 9.5L on all of my 11 cards. Will I be served a notice because I have spent 104L on my cards.
OR
Will I be not served any notice as my spending on any card has not crossed 10 L??

All credit cards are linked to PAN card and if expenses are more than ITR then notice probability will be higher