I kind of messed up with this but I have credit card spend which is 3 times my income. Income is around 38lakhs and CC spend of about 1.1 Cr. This was mostly as I had to clear lot of debts and had to rotate the credit card payment every month out of desperation. I have received message from IT dept for verifying high value transactions. What should be my best course of action hereon, very likely there may be a notice soon to explain the CC transactions.
i also have similar type situation but not received any notice yet…3-4 credit cards…there are wallets which allow adding money using credit card…u keep withdrawing and adding to card then whole bill i clear like this…but overall transactions increased a lot…individual transaction small 10k to 30k…but to clear bill of 1.5 lakh many credit debit need to do almost double 3 lakh… how they will counted ? they will count all debits across all cards of whole year…that value going very very high as doing this almost every month…then my account will be red flagged end of year ? please guide
You can respond to the e-campaign in the following manner:
- Log in to your income tax e-filing account.
- On the home page, go to Pending Actions > Compliance Portal > e-Campaign.
- Select the relevant e-campaign > Select the Transaction.
- Submit Response
By responding to the e-campaign you can justify your transactions.
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Hope this helps!
As credit card payments are a specified financial transaction (SFT), they are reported in your AIS. This reflects that those credit card transactions were made, but does not necessarily mean that the expense was incurred multiple times.
Hope this helps!
@Surbhi_Pal thanks for giving time…
just want to understand this in simplest terms from you :
december month say i have 1.5 lakh credit bill due…
i have 30k in saving account
so what i do, i will deposite 30k to credit card
then withdraw 30k from card using wallet apps then
add back those 30k to credit card…
keep doing until 1.5 lakh bill clear
so in this process in same day i have
5 x 30k transactions of credit in my card = 1.5 lakh
5 x 30k transactions of debit in my card = 1.5 lakh
for my card total transactions(credit_debit) worth 3 lakh per month
income tax track cards who do spend of more than 10lakh in financial year
so in above case 3 lakh per month will be counted or only debits of 1.5 lakh per month?
please guide with precise reply around this data
@Surbhi_Pal awaiting your reply on last post ?
In my opinion, if the credit card spends crosses ₹10L in the financial year, which means that if you have paid credit card bills worth more than ₹10L, in that case, the same will be reported in your AIS and you must report the transactions to the ITD.
@Surbhi_Pal thanks for answering…AIS not showing till now…may be end of year will show these…where exactly we show these transactions in ITR form ?
Do not use wallet apps to transfer money from credit card to bank accounts/wallets.
How will you explain those transactions to ITD ? If you check your bank statements all the credits from this wallet have company name and all these credits will consider as your income.
so please stop transferring money from CC to Bank Accounts.
@Private thanks for sharing risks around it… @Surbhi_Pal please comment on this