Financial Knowledge(If you don't want income tax notice)
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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.)
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That’s 2 crore , typo mistake??
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
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!
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).
guys no need to make personal comments like that, lets have some healthy discussion rather.
Cumulative cash deposits above 10 lakh in savings account: reported
CC Payment above 10 lakh reported
Cumulative Mutual fund spends above 10 lakhs reported
Cumulative Purchase of shares above 10 lakh reported
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Purchase / redemption of Mutual funds worth 10 lakh
Why income cannot be only 5,000
If a person is using cc for business transactions
Why income cannot be only 25000-50000 out of 10 lakh
Or if a person is using cash deposit and transfer for business (in current account deposit limit upto 50 lakh ) why income cannot be just 10,000
Why income cannot be only 5000-10000 when purchased and sold shares more than 10 lakh
Just file ITR-3 with actual business income and not on entire 10 lakh
Or stop doing above transactions because they are reported
In simple words income tax is to be paid on income & not on money rotation. So keep noting points in your cc statement hard copy so that if n when required you can convey the officer. As notice can come upto 8 years back transactions. Jus keep calm and keep earning cashback 
Yup. You are right.
But look at the replies form the proclaimed CAs here in DD, how they infuse fear!!!
is it ok of i transfer money to mom dad account and withdraw from their account if required
If they don’t file itr, Yes you can.
Keep it below 10L per person.
SFT
Cumulative cash deposits above 10 lakh in savings account: reported
CC Payment above 10 lakh reported
Cumulative Mutual fund spends above 10 lakhs reported
Cumulative Purchase of shares above 10 lakh reported
-———
As suggested by self proclaimed free seva experts on DD 😁
1.Stop doing above transactions because you may get IT notice
2. You must have 10 lakh rupees income to do above transactions
3.If can’t earn above 10 lakh don’t do these transactions
4. Don’t earn you may get notice
Conclusion : Deal in cash only as it is most safest way of doing transaction ✨
Say bye bye to savings account, Current Account, CC, Share market, and mutual fund
any income tax officer in DD 
Even if there is one, he or she won’t reveal because of their service rules. 
Wow nice one
Good set of information…
A small but very important correction:
File Income Tax Return (ITR) if your income is above Rs. 2.5 Lakh. (and not Rs. 5 Lac)
Because basic exemption limit is still kept as Rs. 2.5 Lakh only.
Feel free to ask / revert any query regarding this.
Warm Regards,
CA. Aniruddha Suresh Rathi 
Yeah my mistake.
But we get tax rebate under 87A if our income is upto 5L and we don’t have to pay any tax.
So I wrote 5L and above.
Thanks for correction 
OP suspended @bumblefoot @MJ911 ?
Bhalai ka to zamana hi nahi hai aajkal
Guys make personal remarks.
And keep this discussion unhealthy.
Maja aa rha he🤩🤩🤩
Soch raha Hun apna DD name ke age main bhi laga lun cahlo chhoro Kya karna hai 🤣🤣
@ramadesidime If you consider yourself most qualified than most of us here then please you suggest what should others do. Just don’t give a cross of every comment others make only to satisfy your self-esteem and that you are the best and saying nothing wrong.
It all stared when you commented No income- no Tax but spend as much as you can. Then I said If you are spending above limit then you have to show source of money, no one can just spend money out of the blue. If you are not earning you must have got it from somewhere just show the proof.
You argued there is no rule that you have to. I brought up IT laws which says declare the source of money.
You again crossed argued come to laymans term don’t give me blah blah and started accusing/challenging CA’s. Calling them frauds and responsible for all.
I don’t understand what is your problem. A discussion should be based on facts then only it will come to conclusion if you just keep yelling with no proof who’s going to believe.
Like I said If a person spending 20L and he declared he earn only 8L the IT will ask the source of remaining 12L and if he satisfies them then there will be no case.
And in this case the guy says he is spending 2crs with no income and also he confirmed his spending was reported to his pan.
I assume you know how CC works – Banks treets your spending this way, You use cc for your transactions and payback the money when you earn it or convert it to emis and pay monthly.
Now some people started doing cc to bank for earning interest/rewards/cashbacks. This not what cc’s was invented for. Banks doesn’t like to give you interest for their own money. That’s why they started charging/blocking on all possible methods of doing cc to bank. People still find ways and do it but the question is Is this legal?
For IT department you are spending money more than the limit and but for people they are not getting so much income out of this that they should give tax.
If you know better give the solution and don’t give the cross argument again lets keep the discussion polite and respectful.
Sir I am withdrawing entire limit of my cc to my own bank account and again sending that same money to cc.
Now if I get notice (most probably they won’t notice I am doing same level transaction for 3yrs now).
If I explain them that it is the same money say 1lakh per day which is going from cc—→bank—→again to cc .
At the end I don’t even get any income close to 2.5L to declare as source of income.
I have done all transactions genuinely and everything is in statement with some 2.6% tds cut by PG
If I get notice I plan to say
1.paying for food of my friends family and entire college
2. Room rent for many people and getting money from them later
3.Buying gift cards to gift to friends and taking some commission (doesn’t even come close to 1%)
4.groceries to entire village
5.anyany more things which I think won’t require bills etc
Now businesses should stop spending money to buy stuff again and again to sell throughout the year else ITD will ask them for entire spent amount, because you need to show entire cumulative spent amount as income 🥰
Only way left is to shut the business 😂
Or deal in black cash only
Long live exfarts
On top of that credit card to account transfer is illegal now ha ha ha 🤭🤭😂😂
I understood what you want to say. Many businesses uses business credits for there transactions but according to law they have to keep a books of record for each transaction of >25rs and get it audit when asked/required.
If don’t want to keep the record and don’t want the audit then they can use Section 44AD – Presumptive Scheme. Where they will have to pay tax on income which is 6/8 % of there annual turnover.
Like if some does 80lakh business cash transactions and opts for 44AD then he will have to pay tax on 8% of 80L i.e. 640000(this will be taken as his income and pay tax according to income tax slabs).
If the person does all these transactions digitally then his income will be 6% of 80L i.e 480000 and pay income tax on this.
I have a query, I have two bank accounts HDFC (Physical) and DBS (Online account) both registered under my Aadhar Card & PAN Card. I keep transferring money between these two accounts for cashback (Amazon/PayTM type of cashback) {Never kept track of how much money I exchange between them}. Since, both the account are registered under same Aadhar Card & PAN Card i.e; mine. Will that attract any notice from IT or CIBIL effect?
P. S. :- I am newbie to the Financial stuff, sorry for the noob question.
As long as it doesn’t involve credit cards/merchant accounts setup by yourself then no issues. Also if money involved is less than 10 lakh in a year then also no issues.
Sir agar main credit card se online mobile buy krke offline me 200rs extra commission pr bechta hua to kya mujhe commission tax dena hoga? kyuki mere case me TDS katne k liye koi nhi hai, customer toh bas 200 comission deta hai. Mai comission+mobile amount cash leke bank account me deposit krke wapas pay krdeta hu credit card ko to kya mujhe ispar bhi notice aayega agar pr year transaction 10L k upar chala jaye toh?
Mera income iss method k through itna income nhi hua ki tax slab k hisab se pay krna pade.
Ye business mai bas un logo k liye krta hu jo online se phone mngana chate hain par unko online transaction krna nhi aata/krna nhi chate/fraud hone se darte hain kahin dabba khali na aajye.
Main phone mnga k de deta hu hand to hand cash. Phir cash → bank → bank → cc → cc se new phone → cash (repeat)
@GoogleCA @CaShBaCkUnLiMiTeD @aniruddha.rathi @guest_999
In your case the cash you deposit in your account can give you trouble. Cash deposit above 10L in Savings Account are also reported to ITD. Do you file ITR? There are few questions. Ping me, i will guide you.
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0 income
Spends on credit card is 2,24,65,821 any problem??