24 December 2015
I have a credit card and my credit card is used by my friends, relatives and colleagues to do purchases which makes my spending for more then 2 lakhs and I don't have that much income. They return me the money in cash. Will this attract me for paying income tax as maximum things are ordered on my name?
24 December 2015
No but do proper accounting of this things. If you do accounting of your business etc... otherwise keep record so no problem arise, otherwise not a big deal for 2 lac only.
24 December 2015
Can you please explain the accounting thing Sir. And there is no business involved here. It's just that they use my credit card for payment and they return me as cash. And which records should I keep?
25 December 2015
As the transactions have been done through your card, you must be in a position to explain the real situation by maintaining the bills and by whom the purchases were made. . If you can not explain and satisfy the inquiring officer you may be made liable to pay income tax on your un-explained spendings. .
30 December 2015
Dear Prateek Check your 26AS part D AIR transactions. If in part D any tansaction is there then you need to worry as credit card transactions exceeding 2lakhs are reported to income tax deptt. If part d of 26AS contains no transactions then no need to worry. But Pls take care of this in future.
Part D shows Details of paid refund. And I don't see any entries there in all my 26AS forms till date. And should I not spend more then 2 lakhs on CC as maximum transactions are for other persons?
31 December 2015
Also pls stop such practice and if you want to continue then you should have good income to show in ITR. Dear if you file ITR with around income amounting to Rs.600000/- or more then the amount of 2lakhs is not a big ddeal but otherwise it may create unwanted problems.
31 December 2015
Dear Sir checked that part too but no entries there. Can you please tell should I not spend 2 lakhs or more or should I spend less on my CC? My maximum transactions are for my friends and relatives.
CAclubindia
