Myth Without ITR - Can we transact more than 10lakhs in a single credit card?
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Hello Dimers,
I haven't yet filed ITR till now
but can i transact more than 10lakhs in a credit card WITHIN A FINANCIAL YEAR and still be okay? and still dont file ITR henceforth
WILL THAT BRING SURPRICE IT NOTICE TO HOME (when being alone xDDDDDD -> joke)
so the main thing I would like to know is, is it safe to transact more than 10lakhs without ITR
just wondering, so please do comment and lets see the truth and myths around this
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what happens if i use 2 credit card from the same bank
1 credit card - 9 lakhs
2nd credit card from same bank - 9 lakhs
i mean i have to file ITR to clear that IT notice?
Just filing itr doesn't mean that you can do spends over 10 lacks and nothing will happen
If you have single bank credit cards payments done of min 10 lacks then you should give matching or higher income in itr to make sure you don't face any problems in future.
I have to plan something for this
I am just thinking, is there any legal ways to get past this 10lakhs? ITR notice without filling ITR
have you seen anyone do this?
One known person got two notices due to high cc spends and not filing ITR (first notice was system generated and second was initiated by income tax officer).
In the second notice they asked 15-20 questions and asked lots of documents to be submitted online.
So I will suggest you to file ITR.
so , you already spent 10lakh + ? sbi cb cc?
not yet xD but i will soon:) my total spending might already reached 5 lakhs because of gold purchase 2 months ago and usage of sbi cashback as well
so now I am preparing for the worst using this post
Guys ,another question on same lines .
since its just money rotation and we will have all the transaction history.. for the amount spent.
if we just show those transactions history as proofs and say it's money rotation , will IT accept it ?
There's no MYTHs. All but true.
Huge CC spends without proper filed income needs to be justified.
Long back, missed filing ITR. Got a notice due to cc spends. Took a CA's help to reply back and filed delayed ITRs.
However I am sad to say, in your scenario even by Filing ITR you might get a notice. Because you will probably show half the amount as income of your cc spends. Taxman will just think, you are hiding your income. So CA's help probably will be needed any ways.
hehe got you:) mhm i see
well till now i haven't filled ITR so thinking what to do in this worst case scenario and planning for it for 224-25 ITR filing situation,
so wanting to know what are all the possible loop holes to fix this up in case if i get trapped in a IT notice
mhm so my situation is really bad ah grrrr hoping i can justify it:)
well i mostly work as well as do freelancing on "report analyiss with data" and also i get money from parents account , also varoious platform where i sell evouchers so
so my source is 4
1) income from work
2) freelancer income
3) e voucher exchange income which i rotate using credit card
4) parents rotation money
so trying my best to manage this 4 sources in a efficient way to not get trapped in things
so any suggestion for this?
* Its not 10 LAKH transaction in a year but repayments in a year towards credit card or just 1lakh payment in cash then system will generate notice
* itd can understand your spends of upto 1.5 yr of annual income as credit card spends as savings -accural -spillover -emergencies etc can spill over the Fy schedule but that needs some evidence to back it up
* if youre spending for your 1st line of relationship then it would be considered as normal course But if youre spending for friends & family itd requires written agreement between you & whom you spent for & the transaction would be scrutinized
* if you have any other loan (pay out as cash /acc) or any one time income it can be shown as a source for credit card payments
if youre showing the transactions as rotation openly itd may accept it in rare cases But they inform Rbi -your bank -& credit bureau about the usage of cc for manufactured spends /rotation /cashout & have seen banks barring you from thier ecosystem for any product not limited to credit card--bureau scire certainly drops & rbi may scrutinize your accs under money laundering act
if you have past track of regular itr & have spend exponantially big in a one fy year then they would be lenient
No matter where you spend -transact -repay all data is with bank directly & indirectly via PAN card with Itd & the subsequent movement of money is trackable & can re scrutinize upto 14yrs post transactions
i thought 10 lakhs transaction, so its 10 Lakhs payment to credit card:) mhm good info:)
btw can you elaborate this point ->
if you have any other loan (pay out as cash /acc) or any one time income it can be shown as a source for credit card payments
11 lac payment showing in 26as ..how to justify it in ITR ...I FILED LAST YEAR ITR with 9 lac business receipts...what to do now
There are posts already exists in desidime where people said they got ITD notice for credit card High value payments above 10lakh. Refer them.
If i deposit 10 lakhs of someone cash in my account and transfer them to other ac or withdraw by cash in daily manner do I need to file ITR?
Yes , you would get notice to file.
If its exempt (like a gift) then you can explain that. Not required to file itr in such case.
Also assuming that you deposit in multiple transactions , if you deposit 10 l together there are additional implications
In 26as report showing i did 11 lac payment to icici last Financial year.(does it means IT notice?..it was cc to cc or bank payments....in 2022-23 itr i showed 9 lac turnover and 4.5 lac profit...in latest itr i will mention 10 lac turnover and 5 lac profit....now how to justify this 11 lac payment in itr... payment i didn't from bank account...as it was credit card to credit card payment from bharatnxt
See my above reply. You likely require CA's help to file proper ITR3. ITR4.
It4 with presumption scheme.. turnover 86 lakh total 5.5 lakh profit.. i shown while filing itr.. thats more than 6% of turnover.. should work as i do same since many years.. i am self employed..
Very informative!
So my ITR is of 7 lakhs per annum.
Last FY i spent around 12 lakhs on a single HDFC CC and got ITD notice this time.
My father files his ITR of higher enough amount and he transfers money to my account through which I pay the CC bills mostly.
Please advise how should I reply to the notice.
Thanks!
hmm i think tranfers between family dont attract taxes... (just you need to show their source of income and their PAN)
not sure about how this 50,000 gifting applies as rule or not between father and son
I think this 50,000 dont apply for husband and wife but apply between father and son
hope someone more knowledgeable clarifies this query of yours
anyone here?
I Want to know if this limit is cumulative with all the credit cards we own or single credit card payment limit through the year
Theranos said its payment of 10 lakhs cumulatively toward credit cards for a financial year
but many dimers says its limit per bank for a financial year
(i dont know how it reflects in PAN so i can't guess)
I am not sure -> if possible Theranos can you clarify ,it would greatly help:)
anyone confirm?
Pay tax if you have income, stealing tax is a crime due to people like you many salaried class suffer and bear the tax of whole country
I selected a new regime, but got extra tax of 3200 for my FD interest amount. Is it necessary to pay or can I ignore it? If I ignore will i receive notice?
since ITD maintains back data for 14 years i think
if we purchase mobiles for local market shop for lakhs per month . is there any problem for that too..
Purchasing is not the issue here.
But regularly buying with your cc and not showing proper income to support that spends is the problem.
Say you earn and file 15L a year, cc bill for your mobile purchases even if from a single bank is reported as 10L, won't be any issue.
On the otherhand, you not filing or showing low income of say 6L, will make IT department wonder where are you getting that 10L to pay from.
Not a crime, you can have inheritance / parents paying your expenses off etc.. But higher chances of you needing to take help of a CA to justify and satisfy the ITD.
Basically what you do with your CC is your expense, not that of the local market shopkeeper.
if you are not filing ITR and spending above 10 lakh you will get notice from income tax to file return. If your income is not justified with Card spend be ready to get notice
Guys I am student. I am receiving scholarship. I done rotating of money using credit and got 11l to the bank. If I file itr under 6L. Is that okay and also my family holds the white ration card. It was important for us.
I think, if u file ITR, ur ration card will get cancelled.
I spent 3.5 L in a single transaction
Where from this 18 lakhs coming. It's 10 lakhs right
Pls read what he has written in the above post.
Guys ,another question on same lines .
since its just money rotation and we will have all the transaction history.. for the amount spent.
if we just show those transactions history as proofs and say it's money rotation , will IT accept it ?
Yes , they would. But requires a detailed reconciliation with your bank account to prove it.
Also , if they open this case then they would also like an explanation on all transactions that have gone through your bank account (even other than credit cards).
Its not impossible but wastage of time.
* Its not 10 LAKH transaction in a year but repayments in a year towards credit card or just 1lakh payment in cash then system will generate notice
* itd can understand your spends of upto 1.5 yr of annual income as credit card spends as savings -accural -spillover -emergencies etc can spill over the Fy schedule but that needs some evidence to back it up
* if youre spending for your 1st line of relationship then it would be considered as normal course But if youre spending for friends & family itd requires written agreement between you & whom you spent for & the transaction would be scrutinized
* if you have any other loan (pay out as cash /acc) or any one time income it can be shown as a source for credit card payments
if youre showing the transactions as rotation openly itd may accept it in rare cases But they inform Rbi -your bank -& credit bureau about the usage of cc for manufactured spends /rotation /cashout & have seen banks barring you from thier ecosystem for any product not limited to credit card--bureau scire certainly drops & rbi may scrutinize your accs under money laundering act
if you have past track of regular itr & have spend exponantially big in a one fy year then they would be lenient
No matter where you spend -transact -repay all data is with bank directly & indirectly via PAN card with Itd & the subsequent movement of money is trackable & can re scrutinize upto 14yrs post transactions