AIS & Credit Card Usage Notice

[KLB@96]

as long as you are able to justify the transactions, you don't have to worry about anything even if you get a notice from IT dept., but i am assuming there might be some penalties if you ever come on their radar..
@Vaastav is probably the guy who could answer this query

got it, these spends are usually for friends and family like buying using my card on and i take money and pay the bill

 

[drsel]

got it, these spends are usually for friends and family like buying using my card on and i take money and pay the bill

That is not allowed, your credit card is for your personal use only

 

[kumars_001]

That is not allowed, your credit card is for your personal use only

What about adding in cards?
I can have 3 add on cards for my family. They spend they pay. So in this case the spend appears on my ais.

 

[RAMESH BABU N]

See my two posts (posted today) on a similar issue.

Post in thread 'Got income tax notice for credit card spends'

Oct 8, 2024

Have been using my credit cards more than my itr since past few years have never faced a issue. I think it's due to my current account. I make all the payments from my current account through 3rd party like cred etc. Been spending close to 20-25 lakhs every year.

Even if you have only SB accounts, there's no issue. The triggering points could be :

1. Students/unemployed - with no declared income n ITRs - excessive use of CCs - trxns running into lakhs - per annum.

2. Self Employed - with low ITRs - but CC trxns running into Lakhs every month.

3. Using only one CC for...

• RAMESH BABU N

• 
• 

 

[RAMESH BABU N]

See my post

(https://www.technofino.in/community...tice-for-credit-card-spends.18064/post-818564)

 

[paxauquabriba-4876]

so finally what happened with op ?

 

[Lobogris]

m

my ITR is less than 10lacs , but I spend more that that for my family expenses and all , but not on same credit card spent in diff bank cards. I believe i crossed my spends more than ITR last year but no notice as such, this year also had few expenses on my credit card. is it okay?

Why this fear of crossing 10 lakhs on a card? I cross 10 lakhs on several cards each year. No one ever questions it. All that happens is that the bank files a SFT report. So what? I get dozens of SFTs filed every year for purchase of mutual funds, FDs, credit cards, deposits and purchase and sale of property. SFT by itself isn't anything negative. It's just a report by the bank or institution.

 

[KLB@96]

Why this fear of crossing 10 lakhs on a card? I cross 10 lakhs on several cards each year. No one ever questions it. All that happens is that the bank files a SFT report. So what? I get dozens of SFTs filed every year for purchase of mutual funds, FDs, credit cards, deposits and purchase and sale of property. SFT by itself isn't anything negative. It's just a report by the bank or institution.

got it, I usually spread spends across different cards. hopefully that shouldn't attract any issues. I usually give card to family friends for their purchases and I get cash in return , I know this isn't recommended but spends arent that big , just little over my yearly ITR.

 

[deep@vie]

Why this fear of crossing 10 lakhs on a card? I cross 10 lakhs on several cards each year. No one ever questions it. All that happens is that the bank files a SFT report. So what? I get dozens of SFTs filed every year for purchase of mutual funds, FDs, credit cards, deposits and purchase and sale of property. SFT by itself isn't anything negative. It's just a report by the bank or institution.

Fear for those whose ITR doesn't justify the spends

 

[anishdacool]

Why this fear of crossing 10 lakhs on a card? I cross 10 lakhs on several cards each year. No one ever questions it. All that happens is that the bank files a SFT report. So what? I get dozens of SFTs filed every year for purchase of mutual funds, FDs, credit cards, deposits and purchase and sale of property. SFT by itself isn't anything negative. It's just a report by the bank or institution.

Do prepaid card companies also file SFTs for transaction above 10L?

 

[desiviru]

My father is policeman and he filled itr of 8 lakh. I am using my father pnb rupay credit card for reward purpose,i opened a 1 merchant account in bob bank and by using bob account i do a daily transaction of 1lakh ruppe from my father pnb rupay cc by upi.the amount i recived in my account i returned in the same credit card at same day,by continue doing this i paid nearly 56 lakh of credit card but bill always generated in 1000 or 2000 only,is this reported in ais portal if this reported what should i do,should i save myself? Kyunki papa bahut marengey,and mein itr fill nhi krta mere current account mein 40 lakh amd saving account mein 56 lakh ka transaction hain from april 2023... please help me

Edit/Update:
In this pnb credit card, my statement is in negative but payment and other charge is more than 23 lakh, will it report on ais
View attachment 30760

You should be Lehmann Brother's Bank CEO. 🤣 They were responsible for 2008 Fin Crash. You may crash whole CC industry and Rupay also.

 

[Sobirvs]

Why this fear of crossing 10 lakhs on a card? I cross 10 lakhs on several cards each year. No one ever questions it. All that happens is that the bank files a SFT report. So what? I get dozens of SFTs filed every year for purchase of mutual funds, FDs, credit cards, deposits and purchase and sale of property. SFT by itself isn't anything negative. It's just a report by the bank or institution.

i need to spend 10L on infinia. But I am thinking to do this, I will use card 9L for this FY and then 1L after march ending in april 2026. That shdn't generate SFT right?

Also some users on twitter said some banks even reporte don 5~ L around usage.

 

[RajeshV]

i need to spend 10L on infinia. But I am thinking to do this, I will use card 9L for this FY and then 1L after march ending in april 2026. That shdn't generate SFT right?

Also some users on twitter said some banks even reporte don 5~ L around usage.

For the last time... What is your problem with that?!

Is that money on which you evaded tax? If so, keep in mind that something not appearing in SFT doesn't mean that the department doesn't know about it. For all we know, they might have a record of every single transaction you do.

 

[desiviru]

For the last time... What is your problem with that?!

Is that money on which you evaded tax? If so, keep in mind that something not appearing in SFT doesn't mean that the department doesn't know about it. For all we know, they might have a record of every single transaction you do.

Yes, agree with you here. They (IT Dept) do have record being shared by banks for every txn of 50K and every single CC stmt of 5000 n above and most people live in a world of their own that by keeping things low tax department won't know anything.

An ITR of 5L and a CC spends of 4.5L will attract their attention and then people are paying through DC which makes it 4.5L+4.5L = 9L (for example only). Systems are being prepared to track and alert tax department.

I always keep my CC spends per person in family to 75% only of ITR of current year although they take average of last 3 years and ITR reported.

So people should not worry too much about AIS reporting until unless their funds are illicit.

 

[Sobirvs]

Is that money on which you evaded tax?

is your pea sized brain capable of thinking at this level only? Just coz you are into tax evading doesn't mean everyone is. Do better.

Some do have businesses under family member's name, and but they are the one who handle the business meanwhile the family member is a housewife who is just in papers. So there requires some planning to not raise unnecessary questions. Most expenses are on business.

The only thing one can accuse me of is using personal card for business expense which isn't illegal but unethical at best.

I see you made a thread wanting to know a UPI app focused on privacy. Why? What you have to hide? Are you a thief? Evading tax?

You really need to keep your 999 IQ to yourself. No one asked.

 

[cardio_guycardio_guy is verified member.]

i need to spend 10L on infinia. But I am thinking to do this, I will use card 9L for this FY and then 1L after march ending in april 2026. That shdn't generate SFT right?

Also some users on twitter said some banks even reporte don 5~ L around usage.

No need to split it as 9+1. If they can trigger SFT for 10, they can do it for 9 as well.
ANd nobody knows the cutoff for SFT trigger. I paid 20L+ credit card bills last year, nothing came in SFT for me.

 

[RAMESH BABU N]

No need to split it as 9+1. If they can trigger SFT for 10, they can do it for 9 as well.
ANd nobody knows the cutoff for SFT trigger. I paid 20L+ credit card bills last year, nothing came in SFT for me.

I think it is also linked to your historical data of your income figures declared in ITRs.

I/we too never got any notice since 1984 - the year from which I/we am/are filing my/our IT Returns.

 

[Sobirvs]

No need to split it as 9+1. If they can trigger SFT for 10, they can do it for 9 as well.
ANd nobody knows the cutoff for SFT trigger. I paid 20L+ credit card bills last year, nothing came in SFT for me.

Yep, same for me too. But I noticed few people saying on X that SFT generated for paying 6-7L bills to in one FY.