Paying Education fees visa Magnus

[jchandra49]

I have a magus credit card and I would like to pay the tuition fee of my cousin of around 15 Lakh(MS in US) through my credit card through Flywire portal. He will be transferring the same amount to my account.

• Will i have issue with ITR or anything else by paying that much money by using my credit card. (I am paying it bcoz of points)
• Do we have restrictions for paying via Flywire portal

Could someone please suggest whether it's a sensible decision or not

 

[nrj1007]

• Will i have issue with ITR or anything else by paying that much money by using my credit card. (I am paying it bcoz of points)

Yes, you may get a notice from Income tax department as your spends on Credit card might cross your income in ITR and 15 lakhs transferred to your account.

• Do we have restrictions for paying via Flywire portal

I don't think so.

 

[jchandra49]

Yes, you may get a notice from Income tax department as your spends on Credit card might cross your income in ITR and 15 lakhs transferred to your account.


I don't think so.

Thanks for the response.

• If I give the explanation to the income tax department by saying I helped my cousin in paying the fee and he deposited the amount into my account, is it fine or do they make it more complicated
• Also, would i face any issue with Axis bank, since I am spending it on my cousin and not on me.

 

[shashankrt]

I have a magus credit card and I would like to pay the tuition fee of my cousin of around 15 Lakh(MS in US) through my credit card through Flywire portal. He will be transferring the same amount to my account.

• Will i have issue with ITR or anything else by paying that much money by using my credit card. (I am paying it bcoz of points)
• Do we have restrictions for paying via Flywire portal

Could someone please suggest whether it's a sensible decision or not

Depends on your current ITR. If your ITR is above 40 lakhs then this will not matter else you may have to mention this in your ITR filing for next year especially if your cousin deposits money in your account. Check with your CA if possible.

 

[nrj1007]

Thanks for the response.

• If I give the explanation to the income tax department by saying I helped my cousin in paying the fee and he deposited the amount into my account, is it fine or do they make it more complicated
• Also, would i face any issue with Axis bank, since I am spending it on my cousin and not on me.

no issue from bank. Regarding notice, CA can answer better.