Saw this thread late, can someone explain to me how / why would Income tax care if I spend 20lk on cc and have 10lk income?
Simply put this is all number ek ka paisa(unless you pay ccs with cash or some weird hack) tum 20lakh kharch Karo and pay using your own bank account which has more or less every paisa tracked, why is that illegal or needs explanation?
You could be getting 20lk deposited into your account to pay your cc bills but then you have to show it in your itr anyway, uska notice aa sakta hai par existing paise ka nahi aayega.
So tell me again how are people defrauding the system that the govt needs to step in here? Kya judgaad nikaal li hai logon ne?
Let me grab my tinfoil hat.
The Indian government doing Indian government things. Taxation here is overall more complicated and strict than it should be, the reason behind it?
I've got no idea why they had to reinvent many things and make this tax system so complicated and often unfair.
The tax system here is deeply flawed.
There's a LOT of countries that track these transactions and mostly do it to look for money laundering and similar fraudulent activities. It's never an issue even to the middle or even upper salaried classes. Many don't even know or notice those systems or have never face issues with it, just for perspective.
Here we live on fear of those.
And you can tell how thoughtless the government is when it comes to taking decisions like that. There's plenty of core services and changes to them in the last 10 years that still are a nightmare to deal with or that have lots of technical or bureocratic issues, but they implemented them despite all with some that barely improved. Lots of gray areas on them or with weaknesses/loops, and the ones that don't tend to be a nightmare.
They often try to pass things overnight, from one day to the next they expect or want compliance. This has been happening for the last 10 years.
And every single time either they backtrack on these decisions or delay them because they were poorly thought and lacked consideration in many areas so they can't move forward with it.
I've lost count of the number of times I see the same thing repeat all over again, not just in finance but in many other areas.
It is all about control (which isn't inherently bad but in this case it often is).
What this makes me think is, how do people still accept or support this government? It looks like a circus, they attract a lot of attention but do not achieve anything useful, let alone efficient or even reasonable.
Now the good news: I've yet to run into someone who's gotten a tax notice for credit card payments, I've seen some very old posts in some forums about that. But doesn't seem to be a rampant issue, and to what I read these were mostly cases of people who didn't file ITR.
