AIS & Credit Card Usage Notice

[Sobirvs]

In a single bank?

I don't think it matters what savings acc was used to pay the card.

It depends if the payment was on single card 10L+

 

[cardio_guycardio_guy is verified member.]

In a single bank?

Different credit cards, paid from single bank account.

 

[Strange]

Different credit cards

That's why it didn't get reported.

 

[2025]

Not ITD but reporting is done by banks and it is a standard process these days. If PAN is there it gets auto-reported. People open account using eKYC where PAN and Aadhaar gets linked at first step. Without PAN or Form 60, it is not reported anywhere. Like my father post office savings account didn't had PAN for 25 years and only last year he updated in reKYC as having PLI insurance maturity amount coming. This year same Postal savings acocunt interest is updated. I wasn't even aware of this account. So kind of missed addition of meagre interest reporting in ITR for so many years.

Just like banks reports TD interest in 26AS if tax is deducted, same way systems are connected to AIS and every bank send whole file to ITD with PAN data.

Sir, don't just take the Rs.2 case. Because of this reporting they are getting lakhs to crores in tax also which people used to hide before. Even I started reporting savings account interest after Arun Jaitely made it compulsory before that, I many times missed to report. But as it used to be less than 10K, so deduction was there in 80TTA which would have not affected tax liability.

There is also a benefit of AIS. Some people forget their accounts and PAN/Account reporting made them get to know that they have so and so account running since AIS started in 2020. Usually these people used account once a year and then forgot. Even if it becomes dormant one can easily get old ais data to know.

Bhai I was charged a tax of around 100 Rupees just because in 2015 or 2016 (can't remember the year) I forgot reporting the interest component of the itr refund (~Rs. 400) from previous year, which they themselves have not reported in the respective column of 26AS.

It was the only lakuna they found in my whole ITR assessment spanning over 3+ years involving Rs Crore+ txns due to my active involvement in stock market.

They initiated a penalty proceeding for that too. That was ongoing for a solid 6+ years. Later they dropped that proceeding.

That time I was perhaps the only person in my circle reporting all interests from everywhere, almost all others were not reporting that knowingly or unknowingly.

Av ye sab notice fotice se darr nehi lagta. Handled everything on my own. Only printing / Xerox expenses were about Rs. 4000/-+, now imagine the logistical cost of it.

When the tax officer said, get everything audited. I said I have no money to pay auditor. I did everything on my own. Now it's your job to scrutinise and find error in these thousands+ transactions. Then he found that easy find mistake.

That year itself I paid about 5 lakh tax, yet they initiated that penalty proceeding for Rs 100.

 

[SSV]

Different credit cards, paid from single bank account.

Here is the rule that i explained multiple times..


Post in thread 'What get reported to AIS? Spends or Payments?' https://www.technofino.in/community...d-to-ais-spends-or-payments.29222/post-720195

 

[desiviru]

Bhai I was charged a tax of around 100 Rupees just because in 2015 or 2016 (can't remember the year) I forgot reporting the interest component of the itr refund (~Rs. 400) from previous year, which they themselves have not reported in the respective column of 26AS.

It was the only lakuna they found in my whole ITR assessment spanning over 3+ years involving Rs Crore+ txns due to my active involvement in stock market.

They initiated a penalty proceeding for that too. That was ongoing for a solid 6+ years. Later they dropped that proceeding.

That time I was perhaps the only person in my circle reporting all interests from everywhere, almost all others were not reporting that knowingly or unknowingly.

Av ye sab notice fotice se darr nehi lagta. Handled everything on my own. Only printing / Xerox expenses were about Rs. 4000/-+, now imagine the logistical cost of it.

When the tax officer said, get everything audited. I said I have no money to pay auditor. I did everything on my own. Now it's your job to scrutinise and find error in these thousands+ transactions. Then he found that easy find mistake.

That year itself I paid about 5 lakh tax, yet they initiated that penalty proceeding for Rs 100.

Numerous cases of such things. My known was issued notice for Rs.700. I myself got a meagre amount in past but handled things on my own which we all should.

Since then I keep record of everything and ask others to do the same. By rules any amount more than 100 can invite notice. Although now some relief has been provided.

It all depends on AO of the Ward. Sometimes a new AO arrives and their work is to dig graveyards and they like doing it especially if it is a women. Twice I received notice when current AO was a women for my ward/jurisdiction. But again they are just doing their duty. Not everybody will receive notices but with embedding of AI, people will be served notices automatically and AO will only take care of whether correct data is provided or not after that or explanation provided is good to go.

Here I know people whose refunds are stucked since 2011 and in between 5 AOs have changed.

The inefficiency of some people make common people suffer always. But this is life and we have to fight for anything and everything almost every day.

 

[Pravin1156]

Numerous cases of such things. My known was issued notice for Rs.700. I myself got a meagre amount in past but handled things on my own which we all should.

Since then I keep record of everything and ask others to do the same. By rules any amount more than 100 can invite notice. Although now some relief has been provided.

It all depends on AO of the Ward. Sometimes a new AO arrives and their work is to dig graveyards and they like doing it especially if it is a women. Twice I received notice when current AO was a women for my ward/jurisdiction. But again they are just doing their duty. Not everybody will receive notices but with embedding of AI, people will be served notices automatically and AO will only take care of whether correct data is provided or not after that or explanation provided is good to go.

Here I know people whose refunds are stucked since 2011 and in between 5 AOs have changed.

The inefficiency of some people make common people suffer always. But this is life and we have to fight for anything and everything almost every day.

@desiviru @2025 Did you hear anything for Credit Card high value transactions anyone receive income tax notice.

 

[desiviru]

@desiviru @2025 Did you hear anything for Credit Card high value transactions anyone receive income tax notice.

Yes, my friend did received and even I am expecting notice this year. 🙂

All he did was visited AO with txn statements and it was all fine. Notice came only because CC txns were more than last 3 years average income. As he used his CC for family txns and funds were provided from father's account, he was not given much hassles.

As I said before there is no need to worry on receiving notices if you have data with you. They give you time to prepare it also. Not everyone with txn above 10L will get notice.

If say you have 35L average last 3 years income and spend 20L this year with CC then don't expect notice. It may or may not come.

Credit card is just an unsecured loan from bank and people take loans of 1-10 crore also. It doesn't mean IT dept serve them notice. Notices are given only when there is misappropriation of funds.

 

[Pravin1156]

My friend showing his ITR 7lakhs yearly, but his SFT was shown as 1.79crores in 2023-2024 and 1.8crores in 2024-2025. No tax notice came till now, auditor says if we correctly filled the income tax and compliance in SFT. if not tax filled notice may come. but SFT in 2022-2023 45lakhs feedback he given for High value spends.

Anyone receive income tax notice for High value Credit card spend in AIS

@desiviru Brother in this case notice will get or not. Whats your opinion. He filled income tax regularly all year and accept the Hight value credit card transactions. Auditor told if you properly filled ITR and will be compliance in SFT. No notice will received. If in case not filled ITR yearly means SFT will be non compliance so may be notice will be sent to him.

 

[desiviru]

@desiviru Brother in this case notice will get or not. Whats your opinion. He filled income tax regularly all year and accept the Hight value credit card transactions. Auditor told if you properly filled ITR and will be compliance in SFT. No notice will received. If in case not filled ITR yearly means SFT will be non compliance so may be notice will be sent to him.

He won't get it only because AIS has SFT with high value. If ever get he should produce data of rotation of money.

I give you an example: My cousin (far away relation) had got money from his grandfather after his death as he was nominee which was nearly 3.1 crores. He made FDs of those money. His income was ~8.3L that time. SFT shown these txns. But why would income tax issue him notice. Till now 5 years on and no notice. He is genuinely paying tax on interest income being earned from these 3.1 crores which may have swell to 4.3-4.5 crore right now after 5 years.

People inherit money and that is reported to AIS when they claim it as nominee and reinvest with bank. My aunt died in 2022 and left her only daughter a sum of around 1.3-1.5 crores. The day it was transferred, next year bank reported it in AIS under SFT.

Notice will be issued if department fails to track money. Online transfer and inherited money from other account are known to them as they can backtrack the source themselves.

Issuing Tax notices is a hige tax for taxman and if they do it without through investigation, they face wrath of court and they know it.

Toh tax department sirf txn ke base pe notice nahi issue karta. Pehle full scrutinize kartey hai uske baad hi notice diya jata hai. Kai baar woh 2-3 saal tak ek bande ki txn note kartey hai.

 

[hender]

He won't get it only because AIS has SFT with high value. If ever get he should produce data of rotation of money.

I give you an example: My cousin (far away relation) had got money from his grandfather after his death as he was nominee which was nearly 3.1 crores. He made FDs of those money. His income was ~8.3L that time. SFT shown these txns. But why would income tax issue him notice. Till now 5 years on and no notice. He is genuinely paying tax on interest income being earned from these 3.1 crores which may have swell to 4.3-4.5 crore right now after 5 years.

People inherit money and that is reported to AIS when they claim it as nominee and reinvest with bank. My aunt died in 2022 and left her only daughter a sum of around 1.3-1.5 crores. The day it was transferred, next year bank reported it in AIS under SFT.

Notice will be issued if department fails to track money. Online transfer and inherited money from other account are known to them as they can backtrack the source themselves.

Issuing Tax notices is a hige tax for taxman and if they do it without through investigation, they face wrath of court and they know it.

Toh tax department sirf txn ke base pe notice nahi issue karta. Pehle full scrutinize kartey hai uske baad hi notice diya jata hai. Kai baar woh 2-3 saal tak ek bande ki txn note kartey hai.

But for those 3 CR or 1.5 CR are not those Funds are lying with Bank and ONLY Interest is getting generated.
And on that Int Income is being reported in individual ITR.

Whereas 1.8 or 1.79 are being spend or Rotation of money 💰 and that itself is not a easy thing to ignore in the lenses of Taxman 🤔

 

[Pravin1156]

He won't get it only because AIS has SFT with high value. If ever get he should produce data of rotation of money.

I give you an example: My cousin (far away relation) had got money from his grandfather after his death as he was nominee which was nearly 3.1 crores. He made FDs of those money. His income was ~8.3L that time. SFT shown these txns. But why would income tax issue him notice. Till now 5 years on and no notice. He is genuinely paying tax on interest income being earned from these 3.1 crores which may have swell to 4.3-4.5 crore right now after 5 years.

People inherit money and that is reported to AIS when they claim it as nominee and reinvest with bank. My aunt died in 2022 and left her only daughter a sum of around 1.3-1.5 crores. The day it was transferred, next year bank reported it in AIS under SFT.

Notice will be issued if department fails to track money. Online transfer and inherited money from other account are known to them as they can backtrack the source themselves.

Issuing Tax notices is a hige tax for taxman and if they do it without through investigation, they face wrath of court and they know it.

Toh tax department sirf txn ke base pe notice nahi issue karta. Pehle full scrutinize kartey hai uske baad hi notice diya jata hai. Kai baar woh 2-3 saal tak ek bande ki txn note kartey hai.

Thanks for the information. Hope we filled ITR every year and hope he didn't get notice. If notice comes he must ready with all the transaction statements for credit cards reported in SFT and justify the transaction with income tax officer right.

 

[2025]

@desiviru Brother in this case notice will get or not. Whats your opinion. He filled income tax regularly all year and accept the Hight value credit card transactions. Auditor told if you properly filled ITR and will be compliance in SFT. No notice will received. If in case not filled ITR yearly means SFT will be non compliance so may be notice will be sent to him.

IT notice can come on various reasons.

These days mostly system driven. Manual check for notices are very rare. After notices sent, then AO assigned and they manually get involved.

System flag a few txn or input (in ITR, or in AIS if not clarified in itr) based on the taxpayers profile, then either system itself or with minimum manual intervention IT notices are sent.

The criteria for flagging is set by the higher tax officials.

If about 10000 people have been identified (by the system) for disproportionate payment of cc bill then about 400-500 will get notice solely for that reason, that's too mostly from top, and, in that order.
----
Specific to your case he might get notice for 2023-24 immediately (few days) after he file itr of 2024-25. So expect that by September- October, 2025. Else you may think that his case probably skipped from the rader.