Query regarding IT NOTICES On credit card spends

[ramsanjayy]

Lets say if i pay up my bills before the statement generation date and make my bills look less and match up with my ITR does that work or they caluclate overall spends and match up with ITR

 

[techt]

Still counted towards spends. It's not the bills, transactions that count.

 

[Riya Sharma]

Why are you so worried about matching your spends with your itr? My spends definitely don't.

 

[Shoxie]

Lets say if i pay up my bills before the statement generation date and make my bills look less and match up with my ITR does that work or they caluclate overall spends and match up with ITR

Well, Banks and financial institutions are required to send information about people who've deposited/spent more than 10 Lakhs in a FY to IT department. So let's say you transact 9 Lakhs on HDFC and 9 Lakhs on SBI while your income is just 5 Lakhs. There's no need for you to worry about the transactions in SBI and HDFC being sent to IT Dept.

However, if your ITR gets picked for Assessment, then the AO can also scrutinze your bank transactions. Then this 9+9 will also come into picture. The possibility of second case happening is very less.

 

[SSV]

Lets say if i pay up my bills before the statement generation date and make my bills look less and match up with my ITR does that work or they caluclate overall spends and match up with ITR

The rule:
The total amount of payments made into one’s CC account across all the CCs you have in a Bank exceeds 10L during a FY..
It is not :
1) total of transactions
2) total of outstanding amount shown after bill statement…

It is the total you paid into a CC account///

See rule below:

 

[ramsanjayy]

Thanks for the info 👍

 

[Rdspam]

Well, Banks and financial institutions are required to send information about people who've deposited/spent more than 10 Lakhs in a FY to IT department. So let's say you transact 9 Lakhs on HDFC and 9 Lakhs on SBI while your income is just 5 Lakhs. There's no need for you to worry about the transactions in SBI and HDFC being sent to IT Dept.

However, if your ITR gets picked for Assessment, then the AO can also scrutinze your bank transactions. Then this 9+9 will also come into picture. The possibility of second case happening is very less.

So in this second case, can you explain your way out of it? Since rotation isn’t technically income

 

[Shoxie]

So in this second case, can you explain your way out of it? Since rotation isn’t technically income

The only way out would be to prove that those are not income. When you incur expenses which is not commensurate with your income, IT only cares about you proving that it was not your income and nothing else. You'll have to maintain transaction records. That will save you.

 

[mj01]

Bhai change the title to look like a question 🤣

 

[ramsanjayy]

I've Changed bro

 

[hema220]

Well, Banks and financial institutions are required to send information about people who've deposited/spent more than 10 Lakhs in a FY to IT department. So let's say you transact 9 Lakhs on HDFC and 9 Lakhs on SBI while your income is just 5 Lakhs. There's no need for you to worry about the transactions in SBI and HDFC being sent to IT Dept.

However, if your ITR gets picked for Assessment, then the AO can also scrutinze your bank transactions. Then this 9+9 will also come into picture. The possibility of second case happening is very less.

As of now, 2nd case is not happening, but banks has our details and ITD can ask those details anytime. Atleast now onwards, we have to match our spends and income.

 

[hema220]

It

Lets say if i pay up my bills before the statement generation date and make my bills look less and match up with my ITR does that work or they caluclate overall spends and match up with ITR

Lets say if i pay up my bills before the statement generation date and make my bills look less and match up with my ITR does that work or they caluclate overall spends and match up with ITR

it's not about bills generated. Banks notify to ITD about how much you paid towards your credit card. So simple.

 

[hema220]

The rule:
The total amount of payments made into one’s CC account across all the CCs you have in a Bank exceeds 10L during a FY..
It is not :
1) total of transactions
2) total of outstanding amount shown after bill statement…

It is the total you paid into a CC account///

See rule below:

ITD can change it at anytime. They are continuesly updating their software, once they feel that can process the data then possibility is their that they can ask every rupee of our spends.
Note: ITD already tracking our foreign currency spends.