Hot Deal Financial Knowledge(If you don't want income tax notice)

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Financial Knowledge(If you don't want income tax notice)

Points to remember credit card-

1. Dont over spend than your income declared else be ready to receive income tax notice.
2. Dont Spend for others like family and friends.
3. Dont pay bill via cash if paid >1L via cash then file ITR  because all cash deposit of 1L and above are reported to incometax.
4. Dont spend more than 10L using card in 1yr. (Card company have to report to income tax if you have made transaction above 10L in 1yr).

Points to remember Account –
6. No limit on no. of saving accounts you can open (ITR is filed via PAN, not on acct).
7. Up to 10Lakh Deposit and 10 lakh Withdrawal is allowed in form of cash per yr.  If Transaction above 2Lakh per day via any form then file ITR.
8. Current acct limit is 40Lakh deposit/withdrawal pr year and 5Lakh per day.
9. UPI or online transaction are less hostile compared to cash transactions.
10. No limit on money you can keep on your savings account.
11. File ITR if earning above 5Lakh
12. Use current bank account if you do more transactions.
13. 60% penalty will be imposed on undisclosed money. (Income tax sent you notice for your transactions you can’t show proof then be ready to pay 60% charge of undisclosed money.)

126 Comments  |  
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0 income
Spends on credit card is 2,24,65,821 any problem??

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kirandr221996 wrote:

0 income
Spends on credit card is 2,24,65,821 any problem??

That’s 2 crore , typo mistake??

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kirandr221996 wrote:

0 income
Spends on credit card is 2,24,65,821 any problem??

flushedI had to recount that number again to make sure that it’s actually in crore.
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kirandr221996 wrote:

0 income
Spends on credit card is 2,24,65,821 any problem??

Bhaii..Kha se laate ho itna paisa.. with No income.#Nachoo wink

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kirandr221996 wrote:

0 income
Spends on credit card is 2,24,65,821 any problem??

Compared No. of Income tax officer to 1.5 billion people in India they are very little but the technology is advancing they’re updating their ways of working.

Keep on doing this surely you will end up somewhere you don’t wanna go. wink

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Apun-hi-bhagwan-hai wrote:

Compared No. of Income tax officer to 1.5 billion people in India they are very little but the technology is advancing they’re updating their ways of working.

Keep on doing this surely you will end up somewhere you don’t wanna go. wink

What on earth can stop you from spending 2cr per year with zero income ?

PS: If you do not reply to this, I would consider this reply from ‘’newbie in financials’’.

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ramadesidime wrote:

What on earth can stop you from spending 2cr per year with zero income ?

PS: If you do not reply to this, I would consider this reply from ‘’newbie in financials’’.

dear mr legendary financial services pro
First read what he said
2 cr transaction on cc – which means he would have deposited money back to cc via accounts.
First the card company will report to income tax about the large transactions.
Then the bank account company will report for these high transactions.

At last income tax will see his pan how much income he declared and how much he is spending.

In his case income is 0. Which is sureshot income tax notice ✌🏻

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kirandr221996 wrote:

0 income
Spends on credit card is 2,24,65,821 any problem??

This is a troll reply I think without income proof they will not even issue a credit card

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Apun-hi-bhagwan-hai wrote:

dear mr legendary financial services pro
First read what he said
2 cr transaction on cc – which means he would have deposited money back to cc via accounts.
First the card company will report to income tax about the large transactions.
Then the bank account company will report for these high transactions.

At last income tax will see his pan how much income he declared and how much he is spending.

In his case income is 0. Which is sureshot income tax notice ✌🏻

Most probably a troll reply

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Bro I have a doubt in my family only my dad earns and income in income certificate is close to 3.3 lakhs and I had invested in mutual funds in all my four members account by first investing and then redeeeming and then again investing the same money in other members account to get cashback in apps like goalwise and groww so the question is it necessary to file income tax compulsorily for all family members.all the other 3 members don’t earn

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jeff_bezos_amazon_owner wrote:

Bro I have a doubt in my family only my dad earns and income in income certificate is close to 3.3 lakhs and I had invested in mutual funds in all my four members account by first investing and then redeeeming and then again investing the same money in other members account to get cashback in apps like goalwise and groww so the question is it necessary to file income tax compulsorily for all family members.all the other 3 members don’t earn

Will I get a income tax notice if I don’t file a return? I did all these transactions this month only so if I have to file income tax return in which financial yaer I have to file returns? I am a newbie never filed any returns

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if my parent send me money in bank a/c and i spend it , will it be wrong ?

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ramadesidime wrote:

What on earth can stop you from spending 2cr per year with zero income ?

PS: If you do not reply to this, I would consider this reply from ‘’newbie in financials’’.

I am doing just rotation
Daily 50k buy and then pay dues same day.
Card limit is also just over 2L currently.

Based on bank a/c got SBI simply click cc and don’t have any income proof.
But shocked yesterday to see that sbi had reported these in my pan portal against my pan no.

Anyway if I give explanation like I use to withdraw the amount and again settle the amount by end of day it will be satistory

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kirandr221996 wrote:

I am doing just rotation
Daily 50k buy and then pay dues same day.
Card limit is also just over 2L currently.

Based on bank a/c got SBI simply click cc and don’t have any income proof.
But shocked yesterday to see that sbi had reported these in my pan portal against my pan no.

Anyway if I give explanation like I use to withdraw the amount and again settle the amount by end of day it will be satistory

where had sbi reported ? which site? how to view if such has been reported against my pan no?

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demerius2020 wrote:

if my parent send me money in bank a/c and i spend it , will it be wrong ?

Not wrong. Hope they are not depositing cash in ur account!

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Nachoo_NK wrote:

Bhaii..Kha se laate ho itna paisa.. with No income.#Nachoo wink

He is in weed business. It’s not a joke.

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what is wrong in spending above 10L through card in a year ??

Dont spend more than 10L using card in 1yr. (Card company have to report to income tax if you have made transaction above 10L in 1yr).

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Apun-hi-bhagwan-hai wrote:

dear mr legendary financial services pro
First read what he said
2 cr transaction on cc – which means he would have deposited money back to cc via accounts.
First the card company will report to income tax about the large transactions.
Then the bank account company will report for these high transactions.

At last income tax will see his pan how much income he declared and how much he is spending.

In his case income is 0. Which is sureshot income tax notice ✌🏻

>>>
First the card company will report to income tax about the large transactions.
Then the bank account company will report for these high transactions.
>>>
So what!

>>>
At last income tax will see his pan how much income he declared and how much he is spending.
>>>
Zero income would be declared. Is there any rule that, first earn and then spend?
Will there be any issue for any govt?

Hint: Income is different from wealth. You need to pay tax on your yearly income NOT on wealth. (BTW, wealth tax is different subject)

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kirandr221996 wrote:

I am doing just rotation
Daily 50k buy and then pay dues same day.
Card limit is also just over 2L currently.

Based on bank a/c got SBI simply click cc and don’t have any income proof.
But shocked yesterday to see that sbi had reported these in my pan portal against my pan no.

Anyway if I give explanation like I use to withdraw the amount and again settle the amount by end of day it will be satistory

Did CC spends cross 10L per year per bank?

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ramadesidime wrote:

Did CC spends cross 10L per year per bank?

the 10L limit is all about reporting to tax department or spending 10L on card is not allowed ? grinning

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ZitOO wrote:

the 10L limit is all about reporting to tax department or spending 10L on card is not allowed ? grinning

It’s all about reporting, bank won’t stop you from spending but IT may ask where did you spend and justify source of such spending. It’s not as easy as it may sound.

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Apun-hi-bhagwan-hai wrote:

dear mr legendary financial services pro
First read what he said
2 cr transaction on cc – which means he would have deposited money back to cc via accounts.
First the card company will report to income tax about the large transactions.
Then the bank account company will report for these high transactions.

At last income tax will see his pan how much income he declared and how much he is spending.

In his case income is 0. Which is sureshot income tax notice ✌🏻

Top Notch reply but no point explaining to this guy. Sitting on a social media platform he can easily fool people to believe that nothing will happen and it’s easy to explain.

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jeff_bezos_amazon_owner wrote:

Will I get a income tax notice if I don’t file a return? I did all these transactions this month only so if I have to file income tax return in which financial yaer I have to file returns? I am a newbie never filed any returns

Until you go above limit they won’t bother.
And also your are just transferring money here and there, if they send any notice you can show all these accounts are used by my family members and show you were just investing money.

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kirandr221996 wrote:

I am doing just rotation
Daily 50k buy and then pay dues same day.
Card limit is also just over 2L currently.

Based on bank a/c got SBI simply click cc and don’t have any income proof.
But shocked yesterday to see that sbi had reported these in my pan portal against my pan no.

Anyway if I give explanation like I use to withdraw the amount and again settle the amount by end of day it will be satistory

No problem as long as you can show the transactions in black and white.
The only issue could be that once you get the notice, it could be quite painful to close your case as most of the assessing officers are only trying to make a buck.
They may ask you for different documents every week and they never want everything at a go.
This is one of their tactics to trouble so that you give in to some token demand.

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ramadesidime wrote:

>>>
First the card company will report to income tax about the large transactions.
Then the bank account company will report for these high transactions.
>>>
So what!

>>>
At last income tax will see his pan how much income he declared and how much he is spending.
>>>
Zero income would be declared. Is there any rule that, first earn and then spend?
Will there be any issue for any govt?

Hint: Income is different from wealth. You need to pay tax on your yearly income NOT on wealth. (BTW, wealth tax is different subject)

I won’t be able to convince you but I don’t want someone to read your post and make the same mistake.
As you said "Is there any rule? " – Yes there are. Read the IT Act 1961
Cash Credits [Section 68]
Unexplained money [Section 69A]
Unexplained expenditure [Section 69C]

Until and Unless you are printing money yourself, you have to show the source of acquisition of such money.
There are 5 sources stipulated under the Income Tax Act, 1961, like salary, business or profession, house property, capital gains and other sources.

Earning / Spending more than declared in IT return will get you a notice.
And let me tell you the penalty —
Unexplained money, investment, expenditure, etc. would be taxed at the rate of 60% plus surcharge @ 25% of tax. Thus, the effective rate of tax (including [email protected]% of tax and [email protected]% of tax and surcharge) is 77.25%.

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GoogleCA wrote:

Top Notch reply but no point explaining to this guy. Sitting on a social media platform he can easily fool people to believe that nothing will happen and it’s easy to explain.

CAs should show the people ways to avoid tax (this is avoid, this is not evade, note the difference between avoid and evade). Do not infuse fear and loot the money from innocent people.

Edit: Few years ago, there was no online income tax filing free of cost. People and govt fed up with the CAs and govt introduces free filing of returns.
Do you know, why govt took daring step of providing free filing service?

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GoogleCA wrote:

Top Notch reply but no point explaining to this guy. Sitting on a social media platform he can easily fool people to believe that nothing will happen and it’s easy to explain.

+21 natural

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