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Query on Reflection of spends in income tax related to Replaced/upgraded cards

vishalm

TF Buzz
VIP Lounge
Dear All,

As we know that the spends of Rs 10 Lakhs and above on a single credit card with bank are reported to income tax some may get notice for high usage if not filed IT returns or huge mismatch of the spends and returns. I got a doubt, for example ICICI card gives two variants of Master/Visa and Amex with same shared limit, so here in this case usage on each single card is reported on either of one together reported?

Also, in between if I replace the same card in middle of the year and I get new card is it considered as new card and reporting is done based card or all together? How about the upgraded cards in between, for example in icici I upgraded from say rubix to Sapphiro new cards are issued on the same limit & account

how is the replacement handled in the cibil? will old card show as the closed and new account reported or it continuous as it is?

Experts, please clarify
 

Zacobite

TF Ace
VIP Lounge
Is this 10 lacs Limit pertaining to the financial year ending 31 March OR the card anniversary year?
Because some cards have a target spend of 15 lakhs in the card anniversary year.

So can we divide the target spend over 2 financial years to keep it below 10 lakhs in the financial year ending 31 March to avoid any notice?
If there is any doubt on total expense vs income.. IT can pull out expenses on cards even below 10 L.. its all linked to PAN.. its an overall view.. 10 L. limit is the reporting limit for self declaration by bank.. not that anything below is not available as info to IT..
 

Deleted member 9785

TF Ace
VIP Lounge
If there is any doubt on total expense vs income.. IT can pull out expenses on cards even below 10 L.. its all linked to PAN.. its an overall view.. 10 L. limit is the reporting limit for self declaration by bank.. not that anything below is not available as info to IT..
Many money rotaters with low ITR will be in for a rude shock relying on cc influencers for 1-2% cashbacks etc when IT dept comes hounding
 

Zacobite

TF Ace
VIP Lounge
Many money rotaters with low ITR will be in for a rude shock relying on cc influencers for 1-2% cashbacks etc when IT dept comes hounding
yes.. but still can manage if they keep account and prove that it is not additional income.. maximum they will need to pay tax on the profit.. Issue is no one keeps any account.. its random and then it will become an issue if Qs come..
 

drsel

TF Legend
If there is any doubt on total expense vs income.. IT can pull out expenses on cards even below 10 L.. its all linked to PAN.. its an overall view.. 10 L. limit is the reporting limit for self declaration by bank.. not that anything below is not available as info to IT..
Some cards have a target spend of 15 lakhs in the card anniversary year.

So isn't it a good idea to divide the target 15 lacs spend over 2 financial years to keep it below 10 lakhs in each financial year ending 31 March, to avoid any reporting by the bank and subsequent notice?
 

Zacobite

TF Ace
VIP Lounge
Some cards have a target spend of 15 lakhs in the card anniversary year.

So isn't it a good idea to divide the target 15 lacs spend over 2 financial years to keep it below 10 lakhs in each financial year ending 31 March, to avoid any reporting by the bank and subsequent notice?
do it if you can... just don't assume that it will be un-noticed..it may still pop up on IT systems.. Banks share a lot of info
 
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