Query regarding Yearly 10 lacs spend on card

[vijaypathak077]

Guys, As we know credit card company informs IT dept if we spend over 10 lacs in a year,
What if i take one add-on card on my spouse name ?
Spend done on my spouse card will consider in my 10 lacs limit or her ?
Coz they take pan no to process the addon card request but monthly statement bill is issued on primary card holder name.

 

[Avid_snake]

As the card is in your name, total spends will come under your name only.

But income tax department will question only if your filed income is less than your spends. As long as you income is higher than the reported spends, there is nothing to worry

 

[gurbina]

As the card is in your name, total spends will come under your name only.

But income tax department will question only if your filed income is less than your spends. As long as you income is higher than the reported spends, there is nothing to worry

So you can say for sure that they only question based if your ITR < Reported CC Spends?

Because a lot of people are stating this as a fact, which doesn't feel like substantiated.

 

[Avid_snake]

I've spent greater than 10 lacs both individually and including my wife's addon in different years. There has never been any query from Income Tax. My ITR has always been higher than my spends.

Also as long as the spends are genuine what is the issue. There is no additional tax to be paid just because you spent more than 10 lacs

 

[shubhamosy]

Guys, As we know credit card company informs IT dept if we spend over 10 lacs in a year,
What if i take one add-on card on my spouse name ?
Spend done on my spouse card will consider in my 10 lacs limit or her ?
Coz they take pan no to process the addon card request but monthly statement bill is issued on primary card holder name.

Check these thread's it might help

Search results for query: notice

www.technofino.in

 

[drsel]

I've spent greater than 10 lacs both individually and including my wife's addon in different years. There has never been any query from Income Tax. My ITR has always been higher than my spends.

Also as long as the spends are genuine what is the issue. There is no additional tax to be paid just because you spent more than 10 lacs

Is this 10 lacs Limit pertaining to the financial year ending 31 March OR the card anniversary year?
Because some cards have a target spend of 15 lakhs in the card anniversary year.

So can we divide the target spend over 2 financial years to keep it below 10 lakhs in the financial year ending 31 March to avoid any notice?

 

[Zacobite]

So you can say for sure that they only question based if your ITR < Reported CC Spends?

Because a lot of people are stating this as a fact, which doesn't feel like substantiated.

its not so simple ..it has some algo to understand your income and expense and anything unreasonable MAY be flagged.. eg. If you have sold a house and then there is a huge expense on a car it may not flag it.. even if your base ITR is less.. Keep it clear and clean.. and keep accounts of income and expenses.. then nothing to worry

 

[VISION]

i have 3 cards all with different banks?, so how is it calculated ?, cumulatively spends on all cards or on individual card with 10 lakh spend?

 

[Zacobite]

i have 3 cards all with different banks?, so how is it calculated ?, cumulatively spends on all cards or on individual card with 10 lakh spend?

cumulative per bank

 

[VISION]

cumulative per bank

so if i keep per bank expense less than 10 lakhs they won't report

 

[Zacobite]

so if i keep per bank expense less than 10 lakhs they won't report

yes sir.. thats exactly what should happen.. however IT dept may have multiple sources of info.. so keep accounts