Managing High Credit Card Transactions and Income Tax Notices

[Samarth343]

Don't stress too much about it.. If it is less than 10L, there are less chances of receiving a notice. Even if you receive a notice, basically you have made a payment to a vendor, say Rs. 8,00,000/- in total which infact is a loan.

You have received the loan back (preferably through online channels in your bank account). I think some CA might be able to help you out. If a notice is actually received, you can just show your as well as your friend's bank statement as proof that you have received the money back. I don't think IT department would be concerned with the mode of payment (CC / UPI / Cheque / NEFT / IMPS / RTGS) all are one and the same for them. IT Department is not losing any revenue in terms of tax evasion. CC companies on the other hand might be losing due to RPs.

But this thing should be avoided for sure..

 

[Ekavya]

Don't stress too much about it.. If it is less than 10L, there are less chances of receiving a notice. Even if you receive a notice, basically you have made a payment to a vendor, say Rs. 8,00,000/- in total which infact is a loan.

You have received the loan back (preferably through online channels in your bank account). I think some CA might be able to help you out. If a notice is actually received, you can just show your as well as your friend's bank statement as proof that you have received the money back. I don't think IT department would be concerned with the mode of payment (CC / UPI / Cheque / NEFT / IMPS / RTGS) all are one and the same for them. IT Department is not losing any revenue in terms of tax evasion. CC companies on the other hand might be losing due to RPs.

But this thing should be avoided for sure..

Thanks man! 👍

 

[Quiksilver27]

Man! Do I have to see it in "Annual Statements" -> " Other Informations"? It's empty for all financial years

After logging in income tax website you have to click on AIS -

 

[Ekavya]

After logging in income tax website you have to click on AIS -

View attachment 63734

It seems I am clean This time. Nothing related to CC spend is reported there only interest earned and dividends are reported .

 

[PrinceHeart]

 

[Ekavya]

View attachment 63755

 

[PrinceHeart]

View attachment 63757

I mean ye IT wale log..kaun hai aur kaha se aa jate hai lol

 

[anishdacool]

Basically , it is 10L payments into Credit card duirng a financial year that matters in this case. If it exceeds 10L then it will be reported in AIS.
Then depending upon your itr you may or may not get IT notice..
If your ITR justifies you won't get IT notice.
If you didn't file ITR, then you need to explain the purposes of these transactions and source money and then file an ITR If required. At this time you may need help of a CA.
Don't get worried and at the same time don't do these kind of things..it unnecessarily complicates things and involvement of a CA may be required..

Here is the detailed post I posted for similar query in another thread.
It has all details required..
Mark my post as solution If you feel it answered your query..

Enjoy but be careful ..

--‐---------------

The definition is:
If your Total Payments into all of the Credit cards held in a Bank crosses more than 10L during a financial year ( 01 April to 31 March) then this will be reported in AIS...

Spends and payments are two different terms.

Spends - the transactions that were settled and billed..
Payments: the bill payments made into a credit card account after the bill is generated (typically) or before the bill is generated if you have habit of paying before bill generation...

Hope you understood the difference here..


Example:
1) You have two cards in 🪓 ..
1. NEO
2. My ZOne:

On NEO - you spent 5 lakhs during FY 23-24 , but paid only 4.5L unitl 31 /03 ( deferring 50K to be paid in April 2024).
On My ZOne: you speent 5.5 lakhs , but paid 5.4 L .. ( deferring 10K to be paid in April 2024)..

Here
Total spends on both the cards: 10.5L ( 5+5.5L)
Total payments made into these two cards: 9.9L ( 4.5L + 5.4L)

In this case nothing will be reported by 🪓 to ITD for AIS purposes, even though your total spends are more than 10L i.e 10.5 L , as your total payments are still under 10L ie. 9.9L..

Enjoy..

--------------


Post in thread 'What get reported to AIS? Spends or Payments?' https://www.technofino.in/community...d-to-ais-spends-or-payments.29222/post-720195

Are there any such rules for prepaid cards?

 

[SSV]

Are there any such rules for prepaid cards?

no .... afaik

 

[KK001]

U should not exceed 10L / annum from one bank

@SSV bro can you explain is it from one card or from all(combined), becoz some people tells something some tells other...even in the reply below this post u hv mentioned on all card 10 l but then again in the same reply u are saying split it b/w multiple cards...

 

[KK001]

check your AIS statement by logging in to the income tax website.. even if u dont file returns if bank has reported you, you shud be able to see it.. the 10 lakhs limit is the reporting limit per bank.. for eg if u have 3 axis cards then only if the total payments made to these 3 cards exceeds 10 lakhs then only Axis bank will report you to the income tax dept.. but if u have spent 5 lakhs in all hdfc cards and 5 lakhs in all axis cards then neither of them will report you. If not reported in AIS then ur safe..

Feels so good after reading this 🤓

 

[SSV]

@SSV bro can you explain is it from one card or from all(combined), becoz some people tells something some tells other...even in the reply below this post u hv mentioned on all card 10 l but then again in the same reply u are saying split it b/w multiple cards...

I don't know which posts you were referring to.
The rule is:
If Total payments made towards one or more Credit cards for a given financial organization (ie Bank) during a financial year exceed 10L, then the Bank will report it in AIS.

 

[kangedeverything]

Basically , it is 10L payments into Credit card duirng a financial year that matters in this case. If it exceeds 10L then it will be reported in AIS.
Then depending upon your itr you may or may not get IT notice..
If your ITR justifies you won't get IT notice.
If you didn't file ITR, then you need to explain the purposes of these transactions and source money and then file an ITR If required. At this time you may need help of a CA.
Don't get worried and at the same time don't do these kind of things..it unnecessarily complicates things and involvement of a CA may be required..

Here is the detailed post I posted for similar query in another thread.
It has all details required..
Mark my post as solution If you feel it answered your query..

Enjoy but be careful ..

--‐---------------

The definition is:
If your Total Payments into all of the Credit cards held in a Bank crosses more than 10L during a financial year ( 01 April to 31 March) then this will be reported in AIS...

Spends and payments are two different terms.

Spends - the transactions that were settled and billed..
Payments: the bill payments made into a credit card account after the bill is generated (typically) or before the bill is generated if you have habit of paying before bill generation...

Hope you understood the difference here..


Example:
1) You have two cards in 🪓 ..
1. NEO
2. My ZOne:

On NEO - you spent 5 lakhs during FY 23-24 , but paid only 4.5L unitl 31 /03 ( deferring 50K to be paid in April 2024).
On My ZOne: you speent 5.5 lakhs , but paid 5.4 L .. ( deferring 10K to be paid in April 2024)..

Here
Total spends on both the cards: 10.5L ( 5+5.5L)
Total payments made into these two cards: 9.9L ( 4.5L + 5.4L)

In this case nothing will be reported by 🪓 to ITD for AIS purposes, even though your total spends are more than 10L i.e 10.5 L , as your total payments are still under 10L ie. 9.9L..

Enjoy..

--------------


Post in thread 'What get reported to AIS? Spends or Payments?' https://www.technofino.in/community...d-to-ais-spends-or-payments.29222/post-720195

Hi all,

My cumulative credit card spends and purchases via ICICI is approximately 10.05 lacs as of November.

I have completely stopped using this card and will resume using it only from 1Apr onwards.

However, some of these spends were converted into EMI. They have blocked my credit card limit but will be spread across several months. After factoring in EMI payments till March, the total credit card payments will be 9.4 lacs till March.

My question is will my credit card spends reflect in SFT or AIS? Do they consider gross spends or only payments done to credit card?

Can someone clarify?

 

[SSV]

Hi all,

My cumulative credit card spends and purchases via ICICI is approximately 10.05 lacs as of November.

I have completely stopped using this card and will resume using it only from 1Apr onwards.

However, some of these spends were converted into EMI. They have blocked my credit card limit but will be spread across several months. After factoring in EMI payments till March, the total credit card payments will be 9.4 lacs till March.

My question is will my credit card spends reflect in SFT or AIS? Do they consider gross spends or only payments done to credit card?

Can someone clarify?

They will consider only Payments made ( not total spends) during a financial year for reporting to AIS.. so, if your total of all payments doesn't exceed 10L then you will be okay,, they wont appear in AIS ..