26AS in SFT - Credit Card

Income Tax Income Tax Notices
1

Hi Everyone,

SFT006 transaction reporting in 26AS for all credit Cards worth of rs. 54 lacs, most of the transactions are online rent payment and money transfer which is credited into my family members account just to earn rewards points and cashback on credit card nothing else. Also, I again used the same amount which was credited to my family members (Asked to transfer in my account first) to pay the rest of the credit card bills (Round and Round).

My annual salary is rs. 17-18 lacs.

Request to please suggest, I want to file ITR 1, what precautions to take while filing ITR !!!

Regards,
Manoj

1 Like
2

Hello @Manoj_Kumar,

This seems like reimbursement of expense i.e. you pay for expenses of your friends/ family using a credit card and they pay that money to you. It don’t have to be reported in the ITR.

But since all information is now reflected in Form 26AS and AIS you should avoid getting into such transactions because if AO asks for clarification you will have to provide all the information.

Hope this helps!

3

Hi ,

I see that SFT006 transaction got reported for the credit card usage of about 11 lakhs.

I use about 170000 of credit card every month in the form of card swipe for the business.

And again i repay it back with in the time frame.

And my annual salary is rs. 9.5 Lakh per Annum

Can any one suggest me will it lead anything related to Income tax or any other issue.

Regards,
Sahir

4

Hi @Sahir25

The SFT information is for disclosure purposes. Your credit card payments are not a part of your income, so it does not affect your income tax return.

5

What if the credit card usage even though high is not reflecting in Form 26AS or SFT Or AIS at the time of filing for returns , then What should be done ? Assuming that income generated is less than credit card payments…

6

Hii,
You don’t have to do anything because any transactions are reflecting in SFT are reported by the bank and if any transaction is not reflecting in SFT then the reason is your bank have didn’t reporting in SFT of those transactions.
Credit card is for expenses not for earning and if your expenses are more than your income then there is no problem in it.