Income tax notice on more spend on credit card than income

[CHOCOPANDA]

sir i have credit card which i use and also use for my friends. but will income tax give me notice if i spend more than my annual income.
i take money from my friend online and will show to income tax that i have recived from my friends for there spends on my credit card.
pls give detail explanation can i keep on giving credit card use for my friends or i should stop it.
Does any bank will make fine on me if they know.
i pay all dues before due date

 

[rp0703]

sir i have credit card which i use and also use for my friends. but will income tax give me notice if i spend more than my annual income.
i take money from my friend online and will show to income tax that i have recived from my friends for there spends on my credit card.
pls give detail explanation can i keep on giving credit card use for my friends or i should stop it.
Does any bank will make fine on me if they know.
i pay all dues before due date

What's your total annual credit card usage?

 

[CHOCOPANDA]

for example income 6lac usage 8lac

 

[CHOCOPANDA]

income 6lac usage 8lac

 

[Sudarshan61]

income 6lac usage 8lac

Don't do it...you won't be able to explain IT folks..

 

[schatterjee18]

Please refrain from doing this. This will raise alert and proving all transactions were for friends from a Personal Credit card will also not be that much viable. One or two transaction for friends or family in a year is fine. Again the amount should be within range. For 1lak salary 40-50k can be used from credit card anything above this is a red flag.

 

[sharad007]

i heard of some app is there where you can share your card and get some margin also, people who want to use for some offer can do that .. but i don't remember the site name as of now.. i am aware it will be red flag for your IT but if that kind of app is there to achieve such spend target for make your paid card free than what would be the issue , and we have the proof of the site or app which is doing on behalf... @TechnoFino or any other can give some input would be great ..

 

[jack333]

I think its yaper

 

[avishekubi]

Use my card/ yaper

 

[Proffesor]

Out of yaper and use my cards . usemycards is better

 

[anirban.choudhury]

Out of yaper and use my cards . usemycards is better

Bro is use my cards safe ??
I have been using Yaper and I get my payments on time , I have not used UMC till now

 

[Proffesor]

I didn't use it but I saw good reviews for it. Since it is backed my buyhatke. It's safe

Bro is use my cards safe ??
I have been using Yaper and I get my payments on time , I have not used UMC till now

 

[rp0703]

I didn't use it but I saw good reviews for it. Since it is backed my buyhatke. It's safe

How does UMC works? Is it same as Yaper?

 

[Proffesor]

How does UMC works? Is it same as Yaper?

Yeah you will order on behalf of user and u will get the money once it's delivered

 

[avishekubi]

Bro is use my cards safe ??
I have been using Yaper and I get my payments on time , I have not used UMC till now

Umc is quite risky, delay of payment is common problem there.

 

[usernameofutkarsh]

I have few doubts regarding this exact scenario:
1. Firstly, how can I check my total yearly txn of all the cards (I have 10+). Any better or simpler way? For now, I'm manually calling customer care of each and asking them, but they are telling the total txn amount which were done using cards, which is different if I just calculate the bills of the card.
For eg. the sum of all the bills of all my cards in this FY is ~9 lacs whereas my income is 10 lacs. But according to customer care, I have done around 11 lacs txn (so ~2 lacs txn I had paid before bill generation). Now, which case will be considered?? 9 lacs or 11 lacs?
2. If my total annual income is 10 lacs, taxable income is around 9 lacs and after declarations, taxable income is now 7 lacs. Which one will be compared to credit card spends?
3. I haven't received any notice yet nor the credit card or any such txn is yet showing on income tax portal under AIS. But, if that is the case that I've overspent it, what's the solution? Can I pay more tax to increase the taxable income to justify those credit card txn?
Too much confusion. I'm trying to reach out to a CA about my case, let's see how it goes. Will update here. But if someone can clarify any of my doubts about, will be much appreciated.

 

[jack333]

I think it will be 11 and 7 respectively. Net income in your pocket is available for credit card spends and not gross income. Pre payments before bill generation are considered as spends only also in milestone calculation. Don't do it in future. Hire a ca in case you get notice. They know evasion tactics and replies

 

[gurbina]

I agree with the sentiment of the thread but people are guessing and making random statements in what is a fairly sensitive matter.

I'm not a moderator but please do not make statements without due knowledge.

I'm pretty sure there's ways to make money with your credit card which are fine, also to be able to use however you want with proper justification and supporting documentation.
IT notices aren't final or judgements, but they can be troublesome, annoying, time consuming and even expensive if requires the involvement of CA or if your are missing documents and have to pay any dues/fines on whatever claims that were rejected.

 

[deep@vie]

I have few doubts regarding this exact scenario:
1. Firstly, how can I check my total yearly txn of all the cards (I have 10+). Any better or simpler way? For now, I'm manually calling customer care of each and asking them, but they are telling the total txn amount which were done using cards, which is different if I just calculate the bills of the card.
For eg. the sum of all the bills of all my cards in this FY is ~9 lacs whereas my income is 10 lacs. But according to customer care, I have done around 11 lacs txn (so ~2 lacs txn I had paid before bill generation). Now, which case will be considered?? 9 lacs or 11 lacs?
2. If my total annual income is 10 lacs, taxable income is around 9 lacs and after declarations, taxable income is now 7 lacs. Which one will be compared to credit card spends?
3. I haven't received any notice yet nor the credit card or any such txn is yet showing on income tax portal under AIS. But, if that is the case that I've overspent it, what's the solution? Can I pay more tax to increase the taxable income to justify those credit card txn?
Too much confusion. I'm trying to reach out to a CA about my case, let's see how it goes. Will update here. But if someone can clarify any of my doubts about, will be much appreciated.

what happens generally a credit card issuer reports it to ITD if annual bill paid is >10lacs in case of ITR filed under 10l or if annual bill paid>ITR filed,then it'll show under AIS/TIS.
so,don't use a single card for more than 10l if your ITR is less than 10l. or more than your ITR.Chances of report of combined use of cards are very rare.

 

[usernameofutkarsh]

what happens generally a credit card issuer reports it to ITD if annual bill paid is >10lacs in case of ITR filed under 10l or if annual bill paid>ITR filed,then it'll show under AIS/TIS.
so,don't use a single card for more than 10l if your ITR is less than 10l. or more than your ITR.Chances of report of combined use of cards are very rare.

only problem is, the AIS is not updated and i don't know the exact cc txn amount. Your answer makes sense btw..so thanks.

I'll just avoid using any of my card these 3 months then.