my question is - is there any limitations/ regulations on using credit card as per IT act? or what is the maximum usage limit for credit cards as per IT act.. For Example:
im having credit card limit of Rs. 1 lac. since past 7 months my company using my card for office online payments an average of 1.5 lacs per month (so total nearly 10 lacs for 7 months) and all payments were directly made by company to my credit card A/c. with out affecting my savings/salary account.
Now my question is am i liable to pay any tax on usage of my card for this period. if yes how should i save my tax as all the transactions/ payments was made on behalf of company..
However, note that if the total payments on credit exceeds Rs. 2 lacs a year, the details of the same is given to Income Tax Department under Annual Information Return by the bank.
Higher the spend, higher chances of notices/scrutiny.
It is advisable to take Corporate Card on company's name for all office related payments.
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