came across this insta reel, regarding Notice u/s 148 of the Income Tax Act

[Predator]

Notice under Section 148 is sent if the Tax department feels that some significant income is not disclosed and asks you to do the assessment again.
While scrolling I came across this reel where someone received the said notice for excessive use of Credit Card (compared to income) and not declaring it

Sharing it here for the consumption of the community, especially for TF Buzz members who comes once in a while with a post like this "Plzz Help, Notice Received"


View attachment video_2024-04-23_05-27-30.mp4

Link:

 

[Deleted member 9785]

Iske stock market course se kitna loss hoga?

 

[sauravkumar]

Notice under Section 148 is sent if the Tax department feels that some significant income is not disclosed and asks you to do the assessment again.
While scrolling I came across this reel where someone received the said notice for excessive use of Credit Card (compared to income) and not declaring it

Sharing it here for the consumption of the community, especially for TF Buzz members who comes once in a while with a post like this "Plzz Help, Notice Received"


View attachment video_2024-04-23_05-27-30.mp4

Link:

This should be pinned/ highlighted somewhere.👍👍

There are many people here who are doing this and they will see when IT Notice will come. 😑😑

Jab Paytm jaise org nhi bach sakte toh money revolve karke koi soch rha h CA ki help se Bach jae toh woh ye dekh le!!😂😂

 

[Vasuki]

This should be pinned/ highlighted somewhere.👍👍

There are many people here who are doing this and they will see when IT Notice will come. 😑😑

Jab Paytm jaise org nhi bach sakte toh money revolve karke koi soch rha h CA ki help se Bach jae toh woh ye dekh le!!😂😂

Op is sharing what & u r answering another thing

Sharing it here for the consumption of the community, especially for TF Buzz members who comes once in a while with a post like this "Plzz Help, Notice Received

This 18 l , tax notice .
The guy posted here his Flipkart story ..
Looks like stolen story ..
The way he says to improve his cibil score through more spending.
Tells you how uninformed the Reel maker is .

For notice
Everyone knows after 10 l u get it reported in AIS .
Something every heavy spender of cc here knows .

 

[sidp]

Notice under Section 148 is sent if the Tax department feels that some significant income is not disclosed and asks you to do the assessment again.
While scrolling I came across this reel where someone received the said notice for excessive use of Credit Card (compared to income) and not declaring it

Sharing it here for the consumption of the community, especially for TF Buzz members who comes once in a while with a post like this "Plzz Help, Notice Received"



View attachment video_2024-04-23_05-27-30.mp4

Link:

If you spend for family & friends( or even business), there is no legal problem. You would need a affidavit from them stating their pan and accepting the transaction was for them and they have compensated you for the same.

Accepting cash is a bad idea. If you accept the money through any non cash method: upi/neft/imps/cheque then it stays on record and helps your case.

Even personal spending isn't an issue if it becomes once in a while. Its natural if you buy car/long foreign family trip , your expense might be more than income for a particular year. Issue happens when discrepancy is too much I.e. you spend 4/5 x itr. Then you can't justify.

even though it is legal, we also need to consider the unwanted stress of dealing with itd. As they will go through each line in bank statement, there might be something you can't explain. Therefore limiting total expenditure on particular issuer below 9L is good idea. (Keeping it just below 10L is more suspicious. )

 

[gurbina]

If you spend for family & friends( or even business), there is no legal problem. You would need a affidavit from them stating their pan and accepting the transaction was for them and they have compensated you for the same.

Accepting cash is a bad idea. If you accept the money through any non cash method: upi/neft/imps/cheque then it stays on record and helps your case.

Even personal spending isn't an issue if it becomes once in a while. Its natural if you buy car/long foreign family trip , your expense might be more than income for a particular year. Issue happens when discrepancy is too much I.e. you spend 4/5 x itr. Then you can't justify.

even though it is legal, we also need to consider the unwanted stress of dealing with itd. As they will go through each line in bank statement, there might be something you can't explain. Therefore limiting total expenditure on particular issuer below 9L is good idea. (Keeping it just below 10L is more suspicious. )

He nailed everything.

People are more scared of IT department than the police... The kind of headaches they can create it's pure nightmare material.

So while not illegal to do many things such as spending a fortune with credit cards on behalf of friends and family, if IT wants to, they can make your life beyond miserable. I'd not be surprised if there's reported suicides caused by them.

And I'd be okay with them but I have an incredible distrust for people in uniform, specially tax authorities which aren't know for being impartial or fair.

 

[the_dark_knight]

He nailed everything.

People are more scared of IT department than the police... The kind of headaches they can create it's pure nightmare material.

So while not illegal to do many things such as spending a fortune with credit cards on behalf of friends and family, if IT wants to, they can make your life beyond miserable. I'd not be surprised if there's reported suicides caused by them.

And I'd be okay with them but I have an incredible distrust for people in uniform, specially tax authorities which aren't know for being impartial or fair.

And to add to all this, people are scared of IT dept because they follow this ideology - der aye durust aye... meaning they tend to scrutinize you later after 4-5 yrs so that the interest on undeclared income tax sky rockets (similar to what a bank exploits), and by then the consumer would have little idea amd proofs of those spends done many yrs back.

If I am not wrong, they can reopen ITR upto 7 yrs back, this in mu opinion is just a biased rule favouring them. Even for genuine deductions, one would have problems furnishings the proofs those many years later

 

[the_dark_knight]

If you spend for family & friends( or even business), there is no legal problem. You would need a affidavit from them stating their pan and accepting the transaction was for them and they have compensated you for the same.

Accepting cash is a bad idea. If you accept the money through any non cash method: upi/neft/imps/cheque then it stays on record and helps your case.

Even personal spending isn't an issue if it becomes once in a while. Its natural if you buy car/long foreign family trip , your expense might be more than income for a particular year. Issue happens when discrepancy is too much I.e. you spend 4/5 x itr. Then you can't justify.

even though it is legal, we also need to consider the unwanted stress of dealing with itd. As they will go through each line in bank statement, there might be something you can't explain. Therefore limiting total expenditure on particular issuer below 9L is good idea. (Keeping it just below 10L is more suspicious. )

Very good.....
Now we don't need any CA but just a stamp paper.

 

[sidp]

Very good.....
Now we don't need any CA but just a stamp paper.

You'll need ca/lawyer As wording matters. But itd have a method.

Once system flags your profile. They'll ask for cc & bank statement. And justification why expenses is so high.
Then you need to formulate a reply where CA comes into the equation. You might take on the case yourself especially if you are from finance background and know basic corporate laws. But consulting a decent lawyer/ca once is highly advisable.

Here if you say, for example, I went on a foreign trips with my friends, for some reason ( convenience, forex charges, offer) we decide to put all our expenses on my card. But later the money was returned to me. So only x amount is my share. So itd will ask you to share their pan details, and affidavit saying it was their expense on your card and how they paid you back. Then they'll check their itr filing. This is the problem. Many people will back away. This is also where people who use personal cards to but & resell Face trouble.

If they're satisfied they'll close it. Else they ll ask you to appear where you'll have to justify each line in the statement.

 

[gurbina]

Almost sounds like if you get a tax notice it's easier to request for political asylum and move out of the country

 

[sidp]

Almost sounds like if you get a tax notice it's easier to request for political asylum and move out of the country

Most important part here proper planning & maintaining documents. Else you'll end up paying for genuine transactions also.

Like @the_dark_knight mentioned they intentionally wait for few years for you to misplace some doc & forget which transaction is for what. Anyway who maintains invoice of personal spends?

Splitwise is a good tool to keep track. And getting back exact amount(not the nearest round figure) is important to help you differentiate.