What get reported to AIS? Spends or Payments?

[KK001]

A very important question came in my mind.

I want to that in AIS ( reported by banks to income tax) does if includes billed amount of Credit Cards Or it includes all the transactions. In simple words

If One person spend 2 lakh in a month & more than 10 lakhs in a yr & pay the bill before bill generation date every month, Will it be still reported in AIS & is one is liable for IT NOTICE?

 

[SSV]

Yes. Savings Balance. I have many banks like HDFC axis icici.
HDFC is salary account and annual transactions are like 10L and for Axis sb ac 13L and soo on.
I rotated money between accounts for paying credit cards.
Will that be a problem in future?

DOnt worry much as of now..
Your SB accounts transactions wont be reported to AIS even though it crosses 10L or whatever..
but, if you are picked up for Scrutiny then you will have to explain what are those transactions are for..

SO in nutshell, there is no immediate danger because nothing will be flagged, but in future for any other reason you come into IT's notice and if they see your baks account transactions then need to explain them

 

[SSV]

A very important question came in my mind.

I want to that in AIS ( reported by banks to income tax) does if includes billed amount of Credit Cards Or it includes all the transactions. In simple words

If One person spend 2 lakh in a month & more than 10 lakhs in a yr & pay the bill before bill generation date every month, Will it be still reported in AIS & is one is liable for IT NOTICE?

Did you get your answers??

 

[Dharm]

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..

I hope you enjoyed the examples

Considering your example, need to ask below query

For example, If I have 2 Axis card(combined spend 9 lakh), 2 sc card( combined spend 8 lakh), 1 sbi with spend above 10 lakh,

1. Whether only sbi will be reported, as it has above 10 lakhs?
2. or all cards will be reported, as combined spend is (9+8+10=)27 lakh?
3. none of them reported?, as i will make payment from my family members account, and no member will pay more than 9 llakhas payment will be done via 3 or 4 different person, so none of them will spend more than specified limit for ais reporting.

 

[SSV]

Considering your example, need to ask below query

For example, If I have 2 Axis card(combined spend 9 lakh), 2 sc card( combined spend 8 lakh), 1 sbi with spend above 10 lakh,

1. Whether only sbi will be reported, as it has above 10 lakhs?
2. or all cards will be reported, as combined spend is (9+8+10=)27 lakh?
3. none of them reported?, as i will make payment from my family members account, and no member will pay more than 9 llakhas payment will be done via 3 or 4 different person, so none of them will spend more than specified limit for ais reporting.

Answer: pont 1..

 

[350modena]

Considering your example, need to ask below query

For example, If I have 2 Axis card(combined spend 9 lakh), 2 sc card( combined spend 8 lakh), 1 sbi with spend above 10 lakh,

1. Whether only sbi will be reported, as it has above 10 lakhs?
2. or all cards will be reported, as combined spend is (9+8+10=)27 lakh?
3. none of them reported?, as i will make payment from my family members account, and no member will pay more than 9 llakhas payment will be done via 3 or 4 different person, so none of them will spend more than specified limit for ais reporting.

It's 10 lakhs payment to the card at the issuing bank level, so 1..SBI will get reported. I don't think it matters from whose account you pay, but if IT dept matches their ITR status with source of CC payments, then your family member may also receive a scrutiny notice.

See, the IT dept has software to trace anamolies. If your accounts have no anamolies the system will automatically process ITR for refund / no dues.

If there are anomalies only then it's possible to get a notice for scrutiny.

 

[SSV]

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..

I hope you enjoyed the examples

A very important question came in my mind.

I want to that in AIS ( reported by banks to income tax) does if includes billed amount of Credit Cards Or it includes all the transactions. In simple words

If One person spend 2 lakh in a month & more than 10 lakhs in a yr & pay the bill before bill generation date every month, Will it be still reported in AIS & is one is liable for IT NOTICE?

@KK001 ,
If you believe the below post had answered your questions, you may mark the post as "solution " by cliking on the "Check" mark "tick mart just below my post .. It would be helpful for the future readers of this thread to directly access the answer...

thanks

Post in thread 'What get reported to AIS? Spends or Payments?'

Jul 20, 2024

& Yes if I spend more than 10 lakhs this FY i.e; till 31/03/2025 the is there any chances of getting notice in this year in 2024 ?

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...

• SSV

• 
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[SSV]

A very important question came in my mind.

I want to that in AIS ( reported by banks to income tax) does if includes billed amount of Credit Cards Or it includes all the transactions. In simple words

If One person spend 2 lakh in a month & more than 10 lakhs in a yr & pay the bill before bill generation date every month, Will it be still reported in AIS & is one is liable for IT NOTICE?

I know you are new to the TF community..

You need to mark my post which I gave you all the details to your question as a solution ...
i.e. Post no # 7 ...
Not the post I asked you to mark...
so untick the post # 26
and tick the post # 7.

Thanks

 

[theflash]

while using your CCs for non-personal uses.

Means even if I buy for cousins/relatives/friends?
I don't file ITR as of now but going to start so just confirming...

 

[Jatin Kumar]

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..

I hope you enjoyed the examples

If any Transaction got refunded after credit card Bill Generation , then It will be counted as a payment?

Second Question- I am seeing that Axis Bank only is reporting to AIS. I am using other card also for more than 10 lakh per card payment but HDFC or SBI Banks are not reporting to AIS. Why ??

 

[SSV]

If any Transaction got refunded after credit card Bill Generation , then It will be counted as a payment?

Technically it shold be counted.. but in practice some banks do while others don't count as a payment...

Second Question- I am seeing that Axis Bank only is reporting to AIS. I am using other card also for more than 10 lakh per card payment but HDFC or SBI Banks are not reporting to AIS. Why ??

Not usre why? you need to ask HDFC or SBI

 

[Jatin Kumar]

Technically it shold be counted.. but in practice some banks do while others don't count as a payment...

Thanku So much

Not usre why? you need to ask HDFC or SBI

Why I will ask them unnecessary to create problem for me . It's good only if they are not reporting to AIS

 

[SSV]

Why I will ask them unnecessary to create problem for me . It's good only if they are not reporting to AIS

Smart boy !!

 

[navdeep22]

What is this new, is there any tax if we spend more than 10L a year. What will happen if we do?

 

[350modena]

What is this new, is there any tax if we spend more than 10L a year. What will happen if we do?

There is no tax as such. All transactions are required to be reported if payments made to one bank (for credit cards) > 10 lakhs in one financial years. So your AIS should reflect all such transactions. If it's in line with your lifestyle and ITR (genuine spends) you can easily explain it.

 

[navdeep22]

There is no tax as such. All transactions are required to be reported if payments made to one bank (for credit cards) > 10 lakhs in one financial years. So your AIS should reflect all such transactions. If it's in line with your lifestyle and ITR (genuine spends) you can easily explain it.

Yeah. My spends are genuine, most people's would be. What could be the ways or why government did this was my question, what does wrong/illegal usage of credit card mean

 

[RAMESH BABU N]

what does wrong/illegal usage of credit card mean

The two common incorrect/not-legit ways (strictly can't say wrong or illegal) are :

Using personal cards for commercial or business purposes.

Doing manufactured spends.

While the 1st one is minor, the 2nd one is - relatively speaking - is major n should be avoided.

AIS/TIS is a step taken in that direction. While it is not yet fully operational in this year's ITR filings, most probably, by next year (FY 2024-25) it could be fully operational.

So, we ought to be much more careful while using personal cards.

 

[imdjay]

2nd one is - relatively speaking - is major n should be avoided.

Care to explain, sir?

 

[RAMESH BABU N]

Care to explain, sir?

A big NO.

If you do not really know about it, good for you. Stay ignorant. It's better. One need not know about such things.