Does money Rotation between credit card and bank add up as income in ITR ?

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Deal Cadet
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I used to rotate cc money via paytm and mobikwik in my bank account so will that amount be added in my income and if so will i have to pay tax on it also ?

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No, ideally if you file bussiness ITR such transaction can be mentioned as working capital for short term and paid back! smile

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hardikgala77908 wrote:

No, ideally if you file bussiness ITR such transaction can be mentioned as working capital for short term and paid back! smile

What about non business/ salaried itr?

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Chikky wrote:

What about non business/ salaried itr?

Untill the amount of full years txn total sums up to your yearly salary.. Max 25-40% more than yearly income is justified

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vishal_ag wrote:

Untill the amount of full years txn total sums up to your yearly salary.. Max 25-40% more than yearly income is justified

If its more than that then does it mean it will get included in itr ?

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Chikky wrote:

What about non business/ salaried itr?

Show that transaction as other income tab stating you earned 0.5% from that transaction, simple and pay tax according to your tax slab of that extra income!

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Income earned is taxable. As such just rotation does not attract tax but they can ask you to explain so have txn history.

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If u making commission or interest u need to report it, file itr 3 if dealing in big amounts like 1cr+ a year
else you can add it to other income in other ITRs

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Right now, IT people are taking baby steps to record the card payments above certain amount under STF in 26AS. Very soon, they may derive some data points in the direction you are asking.

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Any spend of 10L+ in a year on any CC gets tracked by ITR in 26AS rolleyes

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BlueFlash wrote:

Any spend of 10L+ in a year on any CC gets tracked by ITR in 26AS rolleyes

I’m sure they are tracking each and every transaction size. It is only a matter of time that we may see this 10L+ number reduced.

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rotation of money is not income so why would you have to pay tax on it just chill 😜

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Bob_The_Builder wrote:

rotation of money is not income so why would you have to pay tax on it just chill 😜

Money rotation is also used in money laundering.

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guest_999 wrote:

Money rotation is also used in money laundering.

but than you dont pay off your credit card dues within few days you’ll have the transaction records its transparent easy to prove …

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Bob_The_Builder wrote:

but than you dont pay off your credit card dues within few days you’ll have the transaction records its transparent easy to prove …

Easy for you to say but imagine the system/officer looking at lakhs of entries with suspicious nature. You think they will cross check all the entries with the associated pan numbers & credits cards issued under those pan along with their card bill payment history. Much easier would be to simply send a notice to explain yourself. Now if you think all the mental tension/time wasted responding to such notice is not an issue then that is a different matter altogether.

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guest_999 wrote:

Easy for you to say but imagine the system/officer looking at lakhs of entries with suspicious nature. You think they will cross check all the entries with the associated pan numbers & credits cards issued under those pan along with their card bill payment history. Much easier would be to simply send a notice to explain yourself. Now if you think all the mental tension/time wasted responding to such notice is not an issue then that is a different matter altogether.

then dont do lacs of transactions who is asking you to do lol..

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Bob_The_Builder wrote:

then dont do lacs of transactions who is asking you to do lol..

You missed the point, I was talking about the total no. of such entries for all persons in any area/jurisdiction of system/officer.

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