ramskypitti
TF Buzz
Lets say if i pay up my bills before the statement generation date and make my bills look less and match up with my ITR does that work or they caluclate overall spends and match up with ITR
-
Hey there! Welcome to TFC! View fewer ads on the website just by signing up on TF Community.
Query regarding IT NOTICES On credit card spends
- Thread starter ramskypitti
- Start date
HumorSimpson
TF Prestige
Last edited:
Why are you so worried about matching your spends with your itr? My spends definitely don't.
Shoxie
TF Ace
Well, Banks and financial institutions are required to send information about people who've deposited/spent more than 10 Lakhs in a FY to IT department. So let's say you transact 9 Lakhs on HDFC and 9 Lakhs on SBI while your income is just 5 Lakhs. There's no need for you to worry about the transactions in SBI and HDFC being sent to IT Dept.
However, if your ITR gets picked for Assessment, then the AO can also scrutinze your bank transactions. Then this 9+9 will also come into picture. The possibility of second case happening is very less.
The rule:
The total amount of payments made into one’s CC account across all the CCs you have in a Bank exceeds 10L during a FY..
It is not :
1) total of transactions
2) total of outstanding amount shown after bill statement…
It is the total you paid into a CC account///
See rule below:
ramskypitti
TF Buzz
Thanks for the info 👍
Rdspam
TF Premier
So in this second case, can you explain your way out of it? Since rotation isn’t technically income
Shoxie
TF Ace
The only way out would be to prove that those are not income. When you incur expenses which is not commensurate with your income, IT only cares about you proving that it was not your income and nothing else. You'll have to maintain transaction records. That will save you.
ramskypitti
TF Buzz
I've Changed bro
hema220
TF Select
As of now, 2nd case is not happening, but banks has our details and ITD can ask those details anytime. Atleast now onwards, we have to match our spends and income.
hema220
TF Select
It
it's not about bills generated. Banks notify to ITD about how much you paid towards your credit card. So simple.
hema220
TF Select
ITD can change it at anytime. They are continuesly updating their software, once they feel that can process the data then possibility is their that they can ask every rupee of our spends.
Note: ITD already tracking our foreign currency spends.
Say, my annual income is 1L and in a FY I have spent 3L combining all of my credit cards (many of the transactions are for others). I don't have any income proof. And say, none of the payment towards the credit card is done by cash. In this case, as the total amount is still much less than 10L, is there a chance to get IT notice?
Last edited:
RAMESH BABU N
TF Legend
Generally speaking NO. But, you can never ever be risking taking chances with the ITD. ITD rules n their filtering processes are extremely dynamic. So, can't take things for granted while dealing with them. So, be on the safer side always.
Just dont worry .. nothing happens... Enjoy life..
You are nothing in the eyes of ITD as far as the above spend profile is concerned ..
6ix9ine
TF Legend
You are safe till 10L, this line is perfect answer for all your queries.
"You are nothing in the eyes of ITD as far as the above spend profile is concerned"
HumorSimpson
TF Prestige
@gopal sharma suggest this guy
shashankrt
TF Ace
It doesnt work like that. For some reason if your IT returns is picked up for audit or if you receive notice on your IT returns (even of not related to CC spends) then your entire tax filing, payments etc are reviewed in which case you will end up with questions related your CC spends if those are not in line with your income.
Also as long as you can justify CC spends / payments even if above your filed income, its OK. Classic case is those with Agricultural income.
Similar threads
- Question
