Is there any income tax issue... if we use more than 10lac rs from credit card in a financial year??

[CA Karan Agarwal]

Will we have have to explain the purchases for crossing 10 Lakh for single bank

In case your file is selected for scrutiny assessment depending on risk parameters of IT department.

 

[amit1972]

To reply...i have to consult a CA...and i believe i have all the necessary documents.

My question is...if bank won't report to IT dept.....how they will the IT dept know that my spends are more than my income?

Simple, Your PAN Card is linked everywhere.

 

[amit1972]

I do regularly file my ITR and a GST Holder also. I generally file NIL RETURN in ITR and my Credit Card transactions in a Financial Year including all different bank's are just around 4/5 Lac's. I also don't do any high transaction's. Is it fair enough, not to serve any IT Notice?

 

[arun4455]

I do regularly file my ITR and a GST Holder also. I generally file NIL RETURN in ITR and my Credit Card transactions in a Financial Year including all different bank's are just around 4/5 Lac's. I also don't do any high transaction's. Is it fair enough, not to serve any IT Notice?

Generally, if you don't have any financial transactions that are reported by financial institutions to income tax. There is negligible chances of getting the notice. There is a long list of such transactions like cash payment of card for more than 1 lacs, bank transfer payment of card of more than 10 lacs, investment in shares, mutual fund, property transfers, spend on foreign travels etc..
For details, you can refer the table:

https://incometaxindia.gov.in/_layouts/15/dit/Pages/viewer.aspx?grp=Rules&cname=CMSID&cval=103120000000007545&searchFilter=&k=&IsDlg=0

 

[Astrella]

I spent about 20L on Amazon Pay Card, and 12 on Bob eterna. no report on AIS from either

 

[Ehtasham_123]

I spent about 20L on Amazon Pay Card, and 12 on Bob eterna. no report on AIS from either

In which Financial Year have you spent?

 

[Astrella]

In which Financial Year have you spent?

FY23-24

 

[Lorddiesel]

To reply...i have to consult a CA...and i believe i have all the necessary documents.

My question is...if bank won't report to IT dept.....how they will the IT dept know that my spends are more than my income?

They will know from PAN card. I believe no bank will issue a credit card to you without PAN card.
Even in Vkyc they request to see PAN only.

 

[Ehtasham_123]

FY23-24

All the financial institutions, property registrars, vehicle registration authorites are bound by Income Tax Act to upload some specified information as defined within the Act and IT Rule. Hence, all those transactions are destined to be uploaded. It is possible that some entities upload the information late, though with defined fine. Hence, it is requested to avoid those high value transactions if income profile doesn't match with your transactions.

 

[Astrella]

All the financial institutions, property registrars, vehicle registration authorites are bound by Income Tax Act to upload some specified information as defined within the Act and IT Rule. Hence, all those transactions are destined to be uploaded. It is possible that some entities upload the information late, though with defined fine. Hence, it is requested to avoid those high value transactions if income profile doesn't match with your transactions.

No problems with getting it reported, but I thought I should be reported before 31st july

 

[violetevergarden]

Please note that they compare with your after tax funds. Like if your ITR is 15Lakhs and you paid 1.5Lakhs in tax, then they would compare it with 13.5L and not 15L