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SFT-006 Credit Card Payment

26 December 2022

I have received a sms from IT department that I didn't file ITR for AY 2022-23. Basically I hold NRE status but due to some reasons I couldn't maintain NRE status as n 2021-22. Also I checked my form 26AS and found out SFT-006 credit card payment of more than 20 lakhs. I never filed ITR before as I was maintaining NRE status. Kindly assist how to proceed in this case and how to sort sft-006 thing ?

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20 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177896 Points)
Replied 26 December 2022

Your status being resident, having credit card SFT 006 transaction, you are required to file ITR immediately.

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GAGAN UGRA (9 Points)
Replied 26 December 2022

Thanks Sir for your response. Sir could you kindly advice on how to proceed about sft thing ? Do I need to file itr only on my income or have to provide any details regarding sft also? How to provide a feedback for sft with explanation ?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177896 Points)
Replied 26 December 2022

File ITR 2 or 3 with all your global income details.

& respond to the SFT transaction, that ITR filed.

1 Like

GAGAN UGRA (9 Points)
Replied 26 December 2022

Noted your response sir.

I earn in US dollars which are coming into my NRE account in India. But for FY 2021-22, I couldn’t maintain NRE criteria. So in this case I am being considered a resident of India for FY 2021-22.
So I have to file tax as per Form 1 as I am resident in that particular year or still have to go with Form 2 as I earned income from a global source ?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177896 Points)
Replied 26 December 2022

Depends upon your Global income criteria. If no income from PGBP, file ITR 2.

You can not use ITR 1 if you have any income from outside India.

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GAGAN UGRA (9 Points)
Replied 26 December 2022

I have no income from PGBP. Only normal salary which is getting credited in NRE account based in India.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177896 Points)
Replied 26 December 2022

OK. File ITR 2 ...

GAGAN UGRA (9 Points)
Replied 26 December 2022

Thank you sir for your kind guidance in this matter. And for sft transaction, I only have to make a reply in e-compliance portal ? What all I can write in my reply regarding sft006

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177896 Points)
Replied 26 December 2022

Just..... Return filed, as per acknowledgement no....

1 Like

Rajesh Kumar (15 Points)
Replied 06 January 2023

I got a e campaign email from income tax department through an email to verify high value transactions. I had around 60 lakhs in credit card transactions reported due to money rotation between credit cards. I am worried that I might be in trouble for this. Can someone please help with advise on this? Will I get a income tax notice and penalties for this

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177896 Points)
Replied 06 January 2023

@ Rajesh..

If return filed, and income declared justifying the transactions, no need to worry..

Rajesh Kumar (15 Points)
Replied 06 January 2023

Originally posted by : Dhirajlal Rambhia
	@ Rajesh.. If return filed, and income declared justifying the transactions, no need to worry..

Yea. ITR has been filed with income around 20 lakhs but SFT of credit card is reported as 60 lakhs. Is there any issue ? I am worried about consequence

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177896 Points)
Replied 06 January 2023

Keep the records of credit cards rotations with statments issued by banks. In case of any further query you can justify the amount roteted for earning some monetary gains.

Rajesh Kumar (15 Points)
Replied 06 January 2023

Thanks sir for the response

1. The money rotation areas done using rent pay using credit card to my own account ? Does this lead to any complications in terms of TDS, income , etc

2. what should my response be now to the campaign sent by income tax? Should I accept transactions are correct