https://www.desidime.com/comments/permalink/9580101
On side note, this is a very good example "how people define the issue from their perspective".
You get replies for non-existing issue.
Got income tax notice for credit card spends
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Income Tax Notice for Credit Card Payment
I have placed various orders from Flipkart with Flipkart Axis Bank credit card and after buying those orders sold them outside at lower prices.I gave the outside shopkeeper a lower price than the prize I bought.But since I got five percent cashback, I got some profit and not loss.
Besides credit card payment showed deposit for which I have already replied with bank statement.And all the deposits were made by myself and no money was sent to anyone.
Can I now tell the income tax department that I used to run a cyber cafe and have customers there and for them I bought these things with my credit card.
Income tax department has asked me for credit card statement and which I will send them.
But income tax asked me about the payment I sent and their details and PAN number but I don't have any details.
And yes I have been filing regular income tax for 3-4 years and I show that my income is less than 5 lacs in the year.
And as a business I saw that I have a shop for electronics.
And since I didn't file income tax on time I also paid 1000 late payment fee.
I got this notice from it dept-
Please refer to the notice under section 133(6) issued from this office and the subsequent reply made by you. Please note that as per
the Trading & Profit and Loss Account furnished by you, the total sales is Rs.18,xx,xxx/- whereas as per information, your total
payment by credit card amounts to Rs.25,xx,xxx/-. So you are requested explain the issue and submit the details of the person
(including PAN and Contact number) for whom the payment has been made. You are also requested to submit the credit card
statement for the F.Y. 2020-21. You are requested to comply within xx/xx/2023.
Response to the letter can be furnished through Compliance Portal only.
I have done a lot of shopping with credit cards for the rest of the years but since I paid the income tax on time I didn't get the notice.
Income tax notice was sent to me because I did not fill the income tax in that year but after sending the income tax notice I paid the income tax with late payment free.
To the first notice I have given the reply in due time and this is the second notice that I have been questioned again.
Now how do I give the reply to the IT department yes I will send the cc statement but how do I tell them can someone explain me so that I can give the reply properly.
Edited-
This is the original notice which I received two to three months ago.At that time I had not filled ITR for that year and I was asked to fill revised ITR and I filled ITR with late payment fee ( 1000 INR ).
And I gave answers to the questions that were put to me and I also sent my trading PL statement statement and bank statement.
But today I got another reply to that notice.
Remaining year ITR-4 is already filed and business name is ABC Trading & Online
Nature of bussiness shown in ITR- Electronic Goods and Accessories
Income Tax Notice for Credit Card Payment
I have placed various orders from Flipkart with Flipkart Axis Bank credit card and after buying those orders sold them outside at lower prices.I gave the outside shopkeeper a lower price than the prize I bought.But since I got five percent cashback, I got some profit and not loss.“But since my card got canceled in the last month, I didn’t get the cashback that I earned in last month, so I didn’t have any money in my pocket.”
“The cash pack of the last month was so much more than the first two months”.So since I didn’t get the last match cashback, ultimately the cashback I earned for the first two months is no longer in my pocket.
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Top Comments
https://www.desidime.com/comments/permalink/9580322
On the side note one thing is more important.
1.People using cc extensively that to in lakhs for just 1 to 2 % rewards ignoring tax implications.
2.Depositing huge cash in sb accounts instead of current account which avoids cash deposit notices.
View 2
more replies
https://www.desidime.com/comments/permalink/9580665
All 25lac spend from 1 card???
https://www.desidime.com/comments/permalink/9581014
Notice ka jawab na doya to kya hoga? Cbi enquiry baithegi? Fir wo log trace karenge.. mera kharch bachega trace karne ka .. 
..
https://www.desidime.com/comments/permalink/9581540
Fine lagega hajaaron kaa with per day increasing penalty, nahi dogey toh court case aur forget about ever getting any loan/cc in future unless win the case in court which may take years.
View 3
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https://www.desidime.com/comments/permalink/9581469
Hi,
Since you have bought goods and sold from credit card and sold you needed to pay gst on the difference of price and sale.there is nothing to worry carry all the invoices to the assessing officer for the goods procured and you say you sold it to the customer you will need to pay 8 percent of your gross profit if not mainiting books of accounts sir
https://www.desidime.com/comments/permalink/9581482
Team , cash deposits in bank account without pan linked are also under income tax surveillance ?
https://www.desidime.com/comments/permalink/9581533
Everything in bank with or without pan is tracked/under surveillance. If you don't want surveillance then keep cash outside of banks.
https://www.desidime.com/comments/permalink/9581494
@palkunal376917 hi bro you paid worth 25lakh cc bills for a single cc or combined with all cc spends ? Also any single cc spend > 10 lakhs ?
https://www.desidime.com/comments/permalink/9581534
It doesn't matter, if all cc spends total crosses 10-15 lakh then it will be checked as all cc are linked to same pan.
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https://www.desidime.com/comments/permalink/9581829
Iska koi simple solution nikalo yaar koi jissa aram sa credit card sa expense kar ska. without any tension.
https://www.desidime.com/comments/permalink/9584242
@palkunal376917
I asked accounts team about this. Did u deposit that cash in current or in savings account? In one or multiple accounts? And at any point did u deposit more than 50k at once?
In the books that you submitted while filing itr.have u mentioned and givem bifurcation about this amount? Were those books written by urself?
https://www.desidime.com/comments/permalink/9584289
I deposited the money in savings account.The money I deposited in the savings account was actually credit card money.
And reply to the first notice that I have already sent the bank statement and said that I have deposited the money to pay the bill.
And the second notice that I was asked more but nothing was asked about the bank deposit only about the credit card payment.
As I have already sent the bank statement and the bank statement shows that I have deposited the money and paid the bill.That's why I think I wasn't asked anything about bank deposits, only credit card transactions.
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https://www.desidime.com/comments/permalink/9587904
Consult CA definitely in your case. But never ever try to pay credit card bill with cash. Ask your shopkeeper to transfer via phonepe or gpay. I am spending 10 times more than my income. My friends using my cards. But they always transfer money online. So i never get IT notice. Since they know source of income
https://www.desidime.com/comments/permalink/9592758
Even phonepe or gpay is risky too ...
https://www.desidime.com/comments/permalink/9603262
Do the IT dept. tracks debit card spends too? Or the deposits and withdrawals in a savings account? Is there any threshold just to be careful, like 10L for CC spends.
https://www.desidime.com/comments/permalink/9619644
If you are filing returns and the CC spends or finance transactions (bank account deposits, real estate buying etc) do not match with your returns then it is an invite to the notice. Now that some type of notices are automatically generated/triggered it is getting difficult to do stunts. Even salaried are getting notices for fy 21-22.
View 7
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https://www.desidime.com/comments/permalink/9618351
Get professional advice
I am a CA finalist in my opinion it is better to get help from qualified CA regarding your future reply and settlement of the case because any mistake can get you in big trouble for example since your turnover already exceed 20L u might need to have GST registration and failing which u may need to pay interest and panelty so showing as sale to other party may also bring trouble but some solutions are there depends on your case
better get good professional help from CA and don't hide anything from them
And in future try to avoid online transactions for few cashback just my opinion
Your case is not severe any CA can easily handle it without any problem so don't worry and good luck
https://www.desidime.com/comments/permalink/9619618
Iska Solution nikalna bhoot jaroori ha nhi ti CC walo ki yo watt lag jayei expenses iitna badh gya ha bina cc ka handle nhi ho sakta or companies salary badhati nhi ha iss liya cc ki transmission ghumani padti haa
https://www.desidime.com/comments/permalink/9619839
Next don't deposit cash in ur account u tell ur customer to pay thru gpay, if possible try to open individual current account n transact thru that u won't get notice next time till 50L, but u consult a good CA before proceeding such huge turnover every year.
https://www.desidime.com/comments/permalink/9621172
ITR process hone k baad mail aaya ya process bhi nhi hua tha?
https://www.desidime.com/comments/permalink/9622000
@palkunal376917 abhi to party suru hui he.. (Game is just started) U also got the notice from GST 😀
https://www.desidime.com/comments/permalink/9622521
He wont get notice from Gst since his sale sis below 40 lakhs , He has to pay income tax at the rate of 8% on sale of goods as he is not required to maintain books of accounts. People will scare visit the assesing officer and explain him in detail
https://www.desidime.com/comments/permalink/9625412
Basically you bought goods in your name and resold them ? Are you registered for gst? You have used personal card to make profits.
https://www.desidime.com/comments/permalink/9625602
In general people book a flight ticket and escape from the country...
But in your case, you need CA to reply. Credit cards are meant for personal usage. As you have spent more than your income, it is questionable...you need to justify the transactions...if you say used for business, gst filing also will come in to picture...so professional help is required.
https://www.desidime.com/comments/permalink/9626107
Ek Idea hum bhi de dete hai...
One solution is,
IT walo ko bol do, Business/personal kaam se managaya tha credit card se udhari me,
But paise nhi the to dosto se thoda thoda udhar le kr bharta rha.
Isi lie 25lakhs ka kharcha hai or 18lakhs jama, Kuch odsto ki to abhi bhi udhari hai...
Fir papa ko dosto ki udhari ka pata chala to papa ne dosto ki udhari chukayi or kuch ki to abhi bhi baaki hai...
😉😄
https://www.desidime.com/comments/permalink/9628838
Guys I am also having 1 doubt... From the past 5 days I have also ordered mobiles, laptops, monitors and other items for my friends and relatives... It's exceeding 4lakhs... Will I also get this type of notice 
... Plz reply...
https://www.desidime.com/comments/permalink/9635121
Hey if you find the solution or the CA who helped you please refer it to me also as i also did the same and my itr is also below 5 lakhs
https://www.desidime.com/comments/permalink/9644468
My Mother got notification for 50K deposit due to savings bank interest! 25L on a 5L ITR is definitely going to attract attention. Get professional help. There are so many IT laws and rules. You don't know in which IT head this is acceptable. Replying on your own might help in very simple cases. Better get a CA file a reply.
https://www.desidime.com/comments/permalink/9644474
I was in similar situation, almost 2 cr plus transaction including some share trading from F&O; actually share trading was in loss..
I remeber geting notices for 19-20 and 20-21 years for not filling returns. Yes, you get different answers from different CAs. Some even said just to ignore the notice. There were other people whom I know got the notice; they ignored and nothing happened but I approached a known, distant-relative tax guy and spent some considerable amount and got out of it.
Send me PM if you need any clarification. Not sure where are you from, I am from AP.
https://www.desidime.com/comments/permalink/9645867
Can you please share how you got out of it?
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https://www.desidime.com/comments/permalink/9752813
Sam I also got notice and I meet two CAs they said no problem and if u got 2nd tim notice we can file itr what I wil do ?
https://www.desidime.com/comments/permalink/9752830
I have one doubt, even if you dont file returns and spend more than your income, is it a problem
https://www.desidime.com/comments/permalink/9787413
Guys Need Help
Got My self similar notice- I got for Misc Expenses 45 L Nothing cash related
My Salaried income 10L
45 L stuff i did-
-60% of these transactions for cc 2 bank, gave card to someone he took 1.5% and gave me in bank deducting this
-Rest 40 % is gave card to someone for fk/az, then got from him via upi/neft same amt + 100-250 Rs profit
CA Suggested we have to write Yes these transactions belong to me and share statement and wait for their response what their response would be is unidentified
In Statement it will be clearly seen that is illegal rotation of money
We appreciate that you have filed your Income Tax Return and contributed towards the progress of Nation. However, the Income Tax Department has received certain information on high value transactions relating to for Financial Year 2022-23. The Income Tax Department has identified following high value information which does not appear to be in line with the Income Tax Return (ITR) filed by you for Assessment Year 2023-24 (relating to FY 2022-23):
https://www.desidime.com/comments/permalink/9789126
There is no direct answer or solution of this problem. Best option is probably going with reputable CA (who charges small amount, which is far better than messing the situation further).
You may have done cc 2 bank out of need, but with 10L ITR, how do people even think of doing 20L purchases on Fk/az thinking it won't backfire?
View 11
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https://www.desidime.com/comments/permalink/9789183
TIDE CARD TO BANK TRANSFER FREE MEIN
https://www.desidime.com/comments/permalink/9789750
Is that notice or feedback/compliance seeking message/email?? @Atlantic
https://www.desidime.com/comments/permalink/9789977
feedback
have to say yes belongs to me , invalid, or No
but he says once we give a response they will send a notice for that we need to send these statements to justify
he is not sure of end result yet
have to say yes belongs to me , invalid, or No
but he says once we give a response they will send a notice for that we need to send these statements to justify
he is not sure of end result yet
https://www.desidime.com/comments/permalink/9790057
So if you delay or not give your feedback at all, it will save you from notice? @Atlantic
https://www.desidime.com/comments/permalink/9790125
thats the prob no one knows this Aaj is new to cas
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May be I'm not paying keen attention. I didn't understand whether you really have electronics store or you just want to say you have the store for the IT department.
As a side hustle I work in insurance, income tax, mutual funds etc. I closely work with a CA in my team and handle notices. When 133 (6) notice is served, returns are revised. I read that you have already done that. Based on my experience handling the notices, the AO keep sending notices despite corrective action. In your case, the notice is for your store not for you, right? So I don't think you filing returns is going to help. If you have a store, can't you just respond saying it was a trade activity? You need to talk to CA. I'm just giving my opinion.
Don't do anything on your own, if you don't want to be in trouble.
Get help from CA and reply in a very sophisticated way, otherwise, you will be in a bigger problem.
Also, do anything within the limits to avoid any issues. Some of the common limits for 1 financial year is as follows:
I heard somewhere that every problem have a solution itself one has to only find the way. don't waste your time and efforts here because now many PPL will come here and make fun of your situation, baaki me itna hi conclude kr paaya hu. isme tumhe Ek Experienced CA ki help cahiye family members friends relatives inki bhi jaroorat padegi although they are so called IT wale not ED baas IT ka chakkar ko jld se jld short out krlo nhi mentally haras hoge.