10 Lakhs IT notice justification - a hypothesis - for credit card users
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Hello Dimers,
Lets consider the following situation:
1) 10 Lakhs crossed: Suppose we paid credit card for a particular bank for a financial year (say for eg FY 24-25) we crossed 10 Lakhs in payment to credit card to a particular bank
2) NO ITR: ITR is not filed till date even once till FY 23-24
3) Auto generated IT NOTICE: IT notice is "computer auto generated" because we crossed 10 Lakhs payment to a "single bank credit card"
4) Genuine Purchases by family money: All the purchases in credit card that is actually done is because of family (i.e buying things for all family members using 1 credit card and because of that IT notice came)
so with the situation of above with the described 4 condition, we receive IT notice and now how to respond justification that IT dept will trust?
Any justification / suggestion you know would greatly help:) if you know and can share:)
Please dont forget to comment your ideas, lets have a healthy output to solve this 10lakhs payment issue that most of us will have soon because of inflation PRICES INCREASED SO OUR LIMIT OF 10LAKSH IS NO MORE ENOUGH
Keep ideas of answer comming down....
on how to justify!!!!! as we all need this at some point of time in our journey
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interesting to know, thanks for the valuable input
hmm any good proofs we can use to show and justify the money source from family members? (money received in NEFT and IMPS) so how to show that as proofs, hmm any suggestion?
I have never crossed that limit and don't have any experience dealing with notices, just so we are clear.
I think I may have an idea on how to deal with this . COMPLETELY MY THINKING, NO IDEA IF IT COULD WORK.
In the event someone gets a notice for paying more than 10L in a single bank/card, you would be required to give an explanation and proofs(my assumption).
To make sure the proof is concise and clear,
1. Allocate a separate bank account for just credit card payments.
2. Have your family members send money to you only in this account.
3. Pay your credit cards only from this account
4. Don't use this account for any other purposes.
Reason for this...
1. In the event of a notice you can explain that you only spent the money you received from family members.
2. All you have to do is submit the bank statement of that account. It would have clear credit and debit entries.
This could serve as proof.
Might look simple. But I think this would be the best approach.
Of course, I would be happy to know why this couldn't work or existence of an better idea, please don't hesitate to correct me.
Ya I am also puzzled on how to submit proofs:) Demon_slayer
sadly i have many bank accounts around 4 but luckily out of which only 1 account is having credit from family members
so i am still wondering how to submit proof of bank statement (i mean the justification along with the statement)
so was puzzled and hence created this post to know how to submit proof for IT notice of 10 Lakhs credit card payment without ITR
so anyone with experience on this IT notice , please do help out with the assumptions and please do rectify where ever necessary to get a good concise result:)
anyone please?
in my ITR 80 LAKH AIS show my ITR are successfully processed
1)You failed to file tax returns (being a credit card holder with irrespective of spending on CC or not), hence you are liable for punishment.
2)You don't need to show any proofs for spending. You have a card, you spent it and paid back.
3)You need to file Tax returns immediately with charges (with zero taxable income or pay the tax on if there is any taxable income)
4)Respond to that auto generated IT notice, "IT returns are filed with late fee"
good points
hmm
1) Income tax return i dont need to file as I am not crossing 2.5 lakhs per annum in official records (but i am sure i will have some income that might need ITR filing even below 2.5 lakhs have to check)
2) hmmm but IT notice will ask source of income?? still i dont have to show any proofs?
3) oh so IT notice is considered as "delayed ITR filing" with late fee???
btw thanks for the inputs
You should file Nil ITR if income less than 2.5 lakhs. Your CC statements, debit, savings account statements are proof. If you have income < 2.5 lakhs how come you made 10 lakh spend? how did you repay amount that is 4 times your income. You used black money to pay the outstanding from politician or money laundering from shell company.
hmm i use money of my relatives on my account:) simple as that:) i rotate money of my family,
my family mindset is against credit cards, and I am the only one who is breaking that lol and using credit cards
eventhough relatives have credit card for more than 20 years , they rarely use lol
so i use their money on my credit card and get rewards as commisson for me:)
@DEEPANGEORGE Bro isn’t the headache too much for the petty rewards.
You are already thinking about IT notice for months and you are saying you haven’t yet crossed that 10L. You are Pre planning and wasting your time. An IT notice gives a headache and most of the times ITD doesn’t respond back to the hard worked responses sent by us, leaving us in doubts for months after responding to a notice.
Just as a well wisher will advice you to put this energy on something fruitful, you are young and have a good mind, you will do wonders with the right skill sets. Leave these “giving forward your cc for family members” for such petty rewards.
Ya this is getting too much worrysome indeed
Thanks for the good guidance, okie let me stop worrying:)
and start doing something more fruitful:)
Ignore hypothesis.
Real Life scenario: Person has never filed an ITR. He received Income tax notice via sms to file Income Tax Return followed by justification on card spending. reason cc spend above 10 lakh
hmmm let me guess -> that person didnt even had proper bank account or income and holding 0 credit cards? right?
if thats the case then bravo xD to IT department xD
In such notices generally source of income/funds is asked using which credit card bills were paid. If you can share proof that the money paid against credit card bills was actually received from your family member who in turn was paying tax or filing ITR to justify the high credit card bills then you don't face any issue.