ITR tracking/filing for DC spends?

[wncjs]

Like there's SFT for tracking spends >10L on CC in a FY, are spends on DC also closely tracked by ITR? I often have to make some txns using my DC as an advance payment when purchasing something from vendors - when I swipe a DC for paying them an advance amount, later I pay everything in cash and they refund the exact same DC payment (that i had paid as advance token amount to them earlier) back. These individual DC payments can be sometimes of high value >3/4L each (depending on total value of products that I intend to purchase from these vendors), but they are refunded as-is by these vendors. So an equal refund would exist for these DC payments. I hope this isn't any issue from ITR perspective? I mean sure they are high value txns, but there are equal refunds to nullify them as well.

Could this be even remotely an issue from ITR perspective? Kindly advise.

 

[Gun17]

I don't think any such transaction gets reported. It's only cash/credit transactions that come under the scanner

 

[wncjs]

Ohh thanks for the reply! Credit txns do you mean refunds to DC would also come in scanner? @Gun17

Or by "credits" you mean inbound fund credits to bank account from other beneficiaries etc - could be salary or other people transferring etc?

 

[SSV]

Ohh thanks for the reply! Credit txns do you mean refunds to DC would also come in scanner? @Gun17

Or by "credits" you mean inbound fund credits to bank account from other beneficiaries etc - could be salary or other people transferring etc?

DC transactions are counted as expenses for your business .. they are part of conducting your business..
don't worry. They are not tracked ..
it's is equivalent to tracking your bank passbook...

 

[wncjs]

DC transactions are counted as expenses for your business .. they are part of conducting your business..
don't worry. They are not tracked ..
it's is equivalent to tracking your bank passbook...

Understood. Thanks. So if DC total txns are > business total ITR value it shouldn't be an issue right from ITR perspective? @s-s-v.14531
Because like i mentioned many times it's needed to pay vendors in advance, and then they refund back post i settle it via cash.

 

[Gun17]

Ohh thanks for the reply! Credit txns do you mean refunds to DC would also come in scanner? @Gun17

Or by "credits" you mean inbound fund credits to bank account from other beneficiaries etc - could be salary or other people transferring etc?

No no, by credit I meant any kind of credit card transaction

 

[wncjs]

No no, by credit I meant any kind of credit card transaction

Ok, thanks for clarifying. Would you have idea about my above query - https://www.technofino.in/community/threads/itr-tracking-filing-for-dc-spends.19996/post-469614 ? @Gun17 No issue right if DC txns >> total ITR filing amount?

 

[Azharuddin]

Offtopic but related
My mother has 15L in her account in BOI. So if I want to open a new account in idfc to get higher returns, what is the best way to transfer the fund? Cheque? Cash transactions may attract IT notice... internet banking not enabled in BOI account.

 

[SSV]

n they refund back post i settle it via cash.

How will they refund?? If they refund to the same bank account - noproblem...

 

[SSV]

Cash transactions may attract IT notice.

whatever you do. never ever do these transactions via cash..

you can do offline neft/RTGS via branch.. from account to account

 

[Azharuddin]

whatever you do. never ever do these transactions via cash..

you can do offline neft/RTGS via branch.. from account to account

Is cheque an option? Banks you know if I insist them to transfer they will ask many questions why transferring, keep in our bank etc ultimately its my money , but there is good relationship also naa .. They always help my mom to fill withdrawal and deposit form, sometime my mother never had to stand in queue, they used to process later and in withdrawal case they even call my mom to collect

 

[SSV]

Is cheque an option? Banks you know if I insist them to transfer they will ask many questions why transferring, keep in our bank etc ultimately its my money , but there is good relationship also naa .. They always help my mom to fill withdrawal and deposit form, sometime my mother never had to stand in queue, they used to process later and in withdrawal case they even call my mom to collect

crossed cheque is also fine.. not bearer cheque ... crossed cheque only

 

[Azharuddin]

crossed cheque is also fine.. not bearer cheque ... crossed cheque only

Thanks bro 🙏😊

 

[wncjs]

How will they refund?? If they refund to the same bank account - noproblem...

They refund to the same debit card from which it was paid initially via their payment gateway. Just like how any online merchant would process a refund to the original payment mode, just like that.

My only concern was because of 2 reasons - a) each of these DC txns are high value <5L but around 4L each. b) cumulative of the DC spend txns is way greater >>> than total itr, but again it gets refunded to original payment mode too as is without any deductions, so the refunds should properly reconcile with each of the payments.

Considering both those in place, should it still be fine? Given even if they are high value payments they are still getting refunded as is to the payment mode right. So net net it should cancel off. But I was just confused because like for CC SFT tracking too they just see total payments to cc regardless of refund or no refund - hence was just confused if their automated system might just check anything similar for dc spends in isolation ( though ideally they should not do this but I'm not sure ) because spends on DC are much higher than ITR in isolation (without seeing refunds) and if that can cause any issues? Hope they won't do that and cause any issues?

 

[SSV]

They refund to the same debit card from which it was paid initially via their payment gateway. Just like how any online merchant would process a refund to the original payment mode, just like that.

My only concern was because of 2 reasons - a) each of these DC txns are high value <5L but around 4L each. b) cumulative of the DC spend txns is way greater >>> than total itr, but again it gets refunded to original payment mode too as is without any deductions, so the refunds should properly reconcile with each of the payments.

Considering both those in place, should it still be fine? Given even if they are high value payments they are still getting refunded as is to the payment mode right. So net net it should cancel off. But I was just confused because like for CC SFT tracking too they just see total payments to cc regardless of refund or no refund - hence was just confused if their automated system might just check anything similar for dc spends in isolation ( though ideally they should not do this but I'm not sure ) because spends on DC are much higher than ITR in isolation (without seeing refunds) and if that can cause any issues? Hope they won't do that and cause any issues?

You are absolutely fine.. they won’t track any DC spends / refunds.. they will never come in sft report.. never … just be at peace…

 

[wncjs]

You are absolutely fine.. they won’t track any DC spends / refunds.. they will never come in sft report.. never … just be at peace…

Thanks man! Appreciate the help. So only thing that is tracked by ITR are cash txns and credit card txns - correct, or anything else too? No mentioned of DC too looks like here - https://cleartax.in/s/sft .

 

[SSV]

Thanks man! Appreciate the help. So only thing that is tracked by ITR are cash txns and credit card txns - correct, or anything else too? No mentioned of DC too looks like here - https://cleartax.in/s/sft .

Correct..
There 13 types of transactions that are tracked in SFT that are discussed in that link
DC is not one of them

 

[wncjs]

Correct..
There 13 types of transactions that are tracked in SFT that are discussed in that link
DC is not one of them

Thank you for the revert! Sometimes IT dept sends questions/notices for high value txns post filing the ITR - any idea if that can be an issue here coz my txns are about 4-4.5L each (<5L each txn though). Somewhere I remember reading, anything >2l inr per DC txn is considered as high value by IT dept (which is why online portals generally ask for PAN), but I'm not completely sure. Are you aware of the same by chance if that can cause any issues for high value txns? And if you know of the threshold amount which ITD uses to qualify as high value or not?