Personal drawings on card payments


This query is : Resolved 

Quick Summary
You can make personal drawings using debit and credit cards without specific income tax limits. However, the Income Tax Department monitors credit card spending, especially for non-ITR filers. If your total card payments exceed £2 lakhs in a financial year, it's advisable to file an Income Tax Return (ITR). These drawings will be recorded in your books, reducing your capital.

03 August 2020 Assess personal drawings withdraw rs.4,50,000/- through on using debit and credit cards payments one finicial year .
Question:
Total withdrawals on card payments allowed under i.t.act.

03 August 2020 There is no allowability or non allowability on such payment under income tax.
Income tax is monitoring non filers of ITR when they spend such amount on credit card.

04 August 2020 IT Dept keeps track of only credit card payments. There is no limit as to the value of personal drawings. But if payments are more than 2 lakhs, then advisable to file ITR

09 August 2020 Yes...it is allowed and will be treated as Drawings in the books of accounts which will reduce the capital


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