26 July 2022
While filing IT return, my 26 AS has been reported an SFT of 17 lakh regarding usage of credit card. Actually this spending was not fully pertaining to me. My family and friends using my card for their purchase and i collect money aginst the same on my card due date. Is there any problem in this?. Is this require any further clarification?
29 July 2022
You allowed your card to be used by relatives and friends and collected money from them for payment. Per se there does not appear any prohibition against such transactions. However, if credit card transactions are of 17 lacs and let’s say your income is of 10 lacs, there may be queries pertaining to this and you should be able to explain things properly. You may need to provide confirmation from relatives/ friends about transactions having been done on their account. Additionally, if you accepted money from them for payment of card bills, whether you could accept more than INR 20K in cash (assuming you did so) may also be a question which may need to be properly addressed.
Author: Advocate Ravish Bhatt Gmail: ravishdbhatt@gmail.com Link to Linkedln Profile: https://bit.ly/3IDGfsU
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