I have one query regarding credit card transaction. One of my friend in insurance business and he paid insurance premium via his own credit card and insurer are pay him or credited in credit card account.
How to treat this type of transaction, if income tax department demanded clarification about these transaction? It is valid transaction or not? Is insurance premium receipt is valid documents as a proof to income tax dept.??
01 January 2024
No issues if paid through credit card. No more clarification required to income tax dept against paid through credit card. Collect payment receipt for the Due payment.
14 January 2024
Hello Keyur, You can clarify the said transactions in E-Campaign Portal and this should not cause any issues. The dept just wants to know the nature of the transaction and any tax implications thereto. Just keep all supporting and details of each and every tranasactions
CAclubindia
