Does transferring money from CC to account attract Income Tax

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Last Comment 2023-06-15

2023-06-13

If I transfer, say 1 lakh, from my credit card to my bank account, will I be liable to pay income tax as per my tax slab. Interested in knowing the technicalities and way arounds. Seasoned dimers are requested to tag CA dimers.

Note: Looking to invest the money transferred in Equity or NPS Tier 2.

Thanks in advance.

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https://www.desidime.com/comments/permalink/9337067

John_Wick

2023-06-13

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@third.i.financial.advisors

https://www.desidime.com/comments/permalink/9337068

kukdookoo

2023-06-13

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If you have ur records straight and file itr then below 10 lacs it shouldn't be an issue otherwise Джон они придут за тобой

https://www.desidime.com/comments/permalink/9337070

John_Wick

2023-06-13

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Managing everything in salary account will be a mess. So I have another account, for which I don’t file ITR as no income is directly credited in it. Will it mean Джон они придут за тобой 😁

Also IMO there is no way to keep records straight as you are not allowed to convert your credit line into debit money. Plz enlighten if otherwise.

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https://www.desidime.com/comments/permalink/9337198

JAYM

2023-06-13

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AIS portal has been updated with SFTs for FY 22-23. If you've made the CC payments 10L or more, it must have been reported by respective bank(s). Refer blow:
https://www.desidime.com/discu..

https://www.desidime.com/comments/permalink/9337281

Sadda-Haq-Aithe-Rakh

2023-06-13

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it depends on other factors.

But for a normal person with ~6-7l annual income it won't cause any problem with 1l cc2bank in most cases.

https://www.desidime.com/comments/permalink/9337440

nomansha

2023-06-13

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Yes, if you are transferring your money through rent payment then you should mention in itr as a income from other sources.

https://www.desidime.com/comments/permalink/9337568

BlueFlash

2023-06-13

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https://www.desidime.com/discussions/sft-inform...

https://www.desidime.com/comments/permalink/9338781

John_Wick

2023-06-13

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So, just to do everything lawfully, will I be imposed income tax, or maybe even questioned, in case I transfer money from credit card to bank account?

https://www.desidime.com/comments/permalink/9341548

third.i.financial.advisors

2023-06-15

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No, you can absolutely do it. Keep a file every year for your transactions if your transactions are more. Keep filing all bills into one file. Rules to follow : 1) Maintain records. 2) The probability of risk increases with the number of transactions and amount of transactions. Nothing to worry if done in cash only . 3) With crores of transactions, dept calling you might be less but dont take that chance. 4) If you have gst / business, file returns properly as both gst and IT dept website is linked. 5) Consult a professional before filing. 6) People try to save 1k - 2k now and regret later. Shouldnt do that. 7) My clients who have sold houses think nothing happens. They wont show it to income tax as it worked 10 years back. They forget the power of AI and the internet. Pls dont do that. 8) Paying proper taxes now is better than future headaches.

https://www.desidime.com/comments/permalink/9341531

third.i.financial.advisors

2023-06-15

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You wont have to pay tax as it is not income. But proper maintenance of records is a must. IT department can send a letter even 4 to 8 years from today. So if you dont have proper records / bookkeeping, you are at a disadvantage.