TAX ON CREDIT CARD REWARS
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Iam using IDFC Card, getting rewards 10000 per month by using at rental apps. Cann any one help on tax implications on usage CC 6 lacs per month
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Per card 10 lac allow ya overall ?
WOW…can you give some details on which rental apps you’re using??
Housing.com
That’s my worry bro, even though we earn rewards, IT dept may think, we are earning extra money as per our payments, looking for help in desidime
99% chances of getting income tax dept notice, be ready to explain to your parents. Stop doing all this “money rotation”.
6 lacks per month… You guys are epic…
Please don’t ruin your future with such activities; doing cc to bank rotation once in a while that too to achieve some milestone is OK, but don’t abuse such things; you are surely gonna get IT notice; and not only that, most probably your CC’s will also get suspended/blocked soon;
*le Dimers after money rotation..
This time people even getting for trn within 3 lakh.. So yes you will get some notice
Can you make rent payments to parents through any of the website and earn rewards ??
You can do to your bank account also, for earning rewards, it reqs only txn
That is the problem, we are earning rewards, but they may think total payments as income and we are just rotating the money
Alot of scare of getting IT notice among the dimer.
They even forgot to read what OP has really asked.
Basic taxable income limit currently in India is 2.5 lakh so till that amount no matter how or what you earn, there is zero tax. Problem is how can someone with less than 2.5 lakh income is spending 6 lakhs per month.
If you are receiving amounts from these apps in your own bank accounts then IT people will ask you to pay tax on rental income
my father have 6 credit card and i use all cards for mobile booking and claiming sale offers for my friends shop
annual package of my father is around 6 lakh… govt. employee
is there any chance that my father will get notice from IT
No issues
if rewards over 50k a year, report in Other income,
keep books of accounts
if want to do in proper way, file an ITR 3
Sometime i wish somebody challenge it in court or with it dept that what wrong he/she did ?
Even with money rotation what is the problem if no rule are broken and money from one pocket totated to anither pocket
Nobody talk about consumer intrest in this country
Lots of wrong, why do you think all these banks & companies make a 20-30 pages T&C agreement for anything. All those doing money rotation & with brain knows it so they never challenge as they know they will never win & as for those without brains doing money rotation, they became aware later after talking to those who knows while making plans to challenge.
You are near to hit 10 lakh & that will be reported to IT. Keep it below 10 Lakh for a year.
Your credit card might be blocked due to transactions is commercial in nature.
Do u have an income to justify your spending of 6 lakhs per month? No guess, tell your ca to make your books in such a way thta you received money from client and you paid his rent online….. Do proper accounting…. You will need in future when tax notice comes…. Plus your turnover will be more than 50 lakhs, hence you are liable for gst registeration as well, unless proper voucher showing reimbursement expenses are not shown
You are not doing seva, you are doing business…. Do it properly…..
Income Tax notices sent to individual taxpayers over lower FY20 TDS. INTRAC
Please Visit
https://ddime.i...9s
Thread reported to IT
Kidding
Income tax will only send notice if your card usage does not matches with your reported Income…
Regarding rewards on credit card you will have to differentiate between cashbacks vs discounts.
No tax on Discounts
Tax only if cashback is provided(that too if it exceeds 50K in year)
Reference
https://economictimes.indiatimes.com/wealth/tax....
6 Lakh per month
Still less than the guy who bought & resold 20 lakhs worth of GVs in a month or two using his diners club black card for 0.5% profit(points were cancelled later by hdfc).
off topic question but need help
Should my father include paytm payments bank account in itr?
Account opened in 2017 via addhar and total transaction worth 30k till date (6-7k in previous FY and interest below 100 rs.) but account not added in itr in previous years.
I want this year’s itr to be perfect as it would be used to get fee waiver in college.
If ITD notices such non reported account but has such low transactions and interest, do they take action?
U r safe with this low interest.
Bohot jigra hai bhai logo k pass
. Matlab Karne se pehle nhi socha ? Aab notice aayega ya nhi ye jaan kar tasalli karna chah rhe. ???
1. Transaction over 10L using CC reported. (If IT department notices huge amount, It can ask all transactions from banks linked to your PAN )
2. People saying gift up to 50000 not taxable. This applies to money transactions from PersonA to B stated as GIFT.
Gift vouchers come under Rule 3(7)(iv), Free up to 5000rs. If you go above then it’s taxable as per slab.
Now Loopholes –
If you don’t do money rotation and redeemed GV using reward points for legit transactions. Go use that GV, buy something. (Don’t sell it and get money in acct else you will have to report it.)
Some CC gives rewards as cashback credited directly to statement balance. You don’t have to do anything as you received cashback from bank for doing transactions. (You can argue to IT dept because CC takes 2-4% transaction charge from you if they are giving 1.5-2% cashback. Then it is not taxable because it’s your own money.)
Now for OP- As you have already did the mistake, here be ready for.
1. CC cancel or maybe blacklisted (remaining rewards will also be blocked) (IDFC is new in CC business that’s why they are slow other banks would have already done that)
2. Bank already reported you to IT for huge transactions (Keep checking 26AS or Compliance portal)
3. If you are using 10000rs gv for buying something then It will harder to track, if you are selling it for money in acct. Pay tax stating income from other sources.
Cc usage more than 10 lacs per year is reported to IT dept. Better speak to a good CA also reg this