Is 10 lakhs limit slab for income tax is for individual Credit cards?

[Deleted member 30411]

If I have 3 credit cards

1) Axis - with 1lakhs limit
2) SBI- 3.5 L
3) RBL- 80k

If I spend

1) Axis - upto 9 L
2) Sbi- upto 8 L
3) RBl- upto 5L

All in One financial year

Will usage limit be counted seperately or as a sum? & Is there any chances of income tax notice.

Furthermore I am self-employed but my business is small so I don't file ITR.

PLS HELP WITH ADVICE.

 

[pinki]

Separate reporting it is .

 

[SSV]

If I have 3 credit cards

1) Axis - with 1lakhs limit
2) SBI- 3.5 L
3) RBL- 80k

If I spend

1) Axis - upto 9 L
2) Sbi- upto 8 L
3) RBl- upto 5L

All in One financial year

Will usage limit be counted seperately or as a sum? & Is there any chances of income tax notice.

Furthermore I am self-employed but my business is small so I don't file ITR.

PLS HELP WITH ADVICE.

The rule is :
If All the payments made to a single Bank ( all CC of that bank) for the CC usage during a financial year exceeds 10L, then it will be reported in Annual information Statement ( AIS). This doesn’t necessarily mean you automatically get notice..but if there is no ITR filed there are chances thenperson gets notice...

Okay now. we will come to your case..

Assuming you have only one CC for each of your banks
1) Axis - 9L
2) Sbi - 8L
3) RBL -5 L
As each bank's spend not exceeding 10L , and hence your payments also do not exceed 10L your CC payment won't be reported in AIS and hence no chance of any notice because of CC spending....
However make sure you pay to Bank for your CC bills only by online payment methods only .. not by cash.. you are all good..

 

[Zacobite]

The rule is :
If All the payments made to a single Bank ( all CC of that bank) for the CC usage during a financial year exceeds 10L, then it will be reported in Annual information Statement ( AIS). This doesn’t necessarily mean you automatically get notice..but if there is no ITR filed there are chances thenperson gets notice...

Okay now. we will come to your case..

Assuming you have only one CC for each of your banks
1) Axis - 9L
2) Sbi - 8L
3) RBL -5 L
As each bank's spend not exceeding 10L , and hence your payments also do not exceed 10L your CC payment won't be reported in AIS and hence no chance of any notice because of CC spending....
However make sure you pay to Bank for your CC bills only by online payment methods only .. not by cash.. you are all good..

10 L.. it is PAYMENT at bank level.. not on spends, not on individual card

 

[nits123]

10 L.. it is PAYMENT at bank level.. not on spends, not on individual card

Yes...It is not on spend but payments made during FY....For example, if you spend 5 Lakh in Mar'24 but payment is made in April'24 then this amount will be counted in FY 2024-25

 

[aayusharyan]

Also, this is not like a limit slab. This is just a milestone to get SFT. Nothing big IMO. I have had them on my ITRs since 2018. But then those were genuine expenses. Not like rotation stuff.

 

[nits123]

Also, this is not like a limit slab. This is just a milestone to get SFT. Nothing big IMO. I have had them on my ITRs since 2018. But then those were genuine expenses. Not like rotation stuff.

I agree but why to get into unnecessary trouble if you can avoid it. In India, Income tax laws are so complex that even if you have paid 100% income tax honestly then also IT department will find out some loophole/tax liability which you missed out.

'it's better to be safe than sorry'

 

[aayusharyan]

I agree but why to get into unnecessary trouble if you can avoid it. In India, Income tax laws are so complex that even if you have paid 100% income tax honestly then also IT department will find out some loophole/tax liability which you missed out.

'it's better to be safe than sorry'

I mean, yeah, if it's simple to avoid it, then ofcourse, also I guess everyone has their threshold for how much they are willing to do for what. I just put all my expensses in a single card (even though I have like 20 credit cards). But I don't want to take hassle of each's bills and all.

 

[SSV]

10 L.. it is PAYMENT at bank level.. not on spends, not on individual card

Are you trying to correct me or reiterating what I said ??

 

[SSV]

Also, this is not like a limit slab. This is just a milestone to get SFT. Nothing big IMO. I have had them on my ITRs since 2018. But then those were genuine expenses. Not like rotation stuff.

If you have an ITR which justifies your CC spends then you can have even 100 crore CC spends / payments ...
OP does not file ITR..
This is exactly what ITD looking for..to catch the people who are spending big without declaring any income..

 

[aayusharyan]

If you have an ITR which justifies your CC spends then you can 100 crore CC spends / payments ...
OP does not file ITR..
This is exactly what ITD looking for..to catch the people who are spending big without declaring any income..

Exactly, I don't understand why people would risk all that just to make a small profit by rotating.

 

[SSV]

Exactly, I don't understand why people would risk all that just to make a small profit by rotating.

That is the nature of this society and the Govt here in India ..
If the Govt and people think and act like you said just now, then Inida would have been Super Super Super Power in the world.. but the reality is , it is not ..
We have to work with what we got...

 

[aayusharyan]

That is the nature of this society and the Govt here in India ..
If the Govt and people think and act like you said just now, then Inida would have been Super Super Super Powerthe world.. but the reality is , it is not ..
We have to work with what we got...

Yeaaaa, it's the sad reality of our society.