What to keep in mind in 2024 - Income tax Compliance and Credit card related

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Deal Cadet
freeloaderz

Hello fellow dimers,

I am new to credit card world and recently saw this post https://www.desidime.com/discussions/income-tax... on Discussion forum, and found that there was similar post  post https://www.desidime.com/discussions/got-income... 2 months back.

With onset of 2024 in a few days, I wanted to learn from community members what all should be kept in mind to stay safe while trying to maximise rewards and cashbacks.

My hope is that this thread will serve as a guiding thoughts and avoids any ITD compliance related matters. Especially to new members like me who are still learning the CC space and would want to safeguard from ITD.

Feel free to quote any dimers you think can help Desidime community members for ITD and CC related discussion.

#JanHitMeJaari by #DesiDime

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Comrade Comrade
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Dont overspend too much for milestones or making card charges free.. Keep ltf card as much as possible as there u have to only spend when required..... 

Dont spend such a amount like 50 lakh-60 lakh.... Which u cant explain in an event of notice coming from IT dept.... Never spend more than 10 lakh from one bank card..... Like if u have 3 cards from icici... The total spend from all three shouldn't go above 10 lakh... Or else bank is obliged to report it to IT dept... Also don't make bill payment of more than 1 lakh cash per financial year from any branch for any credit card.... 

Commentator Commentator
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I feel it is safer to file returns based on the AIS i.e. file returns as per the user data automatically populated. My belief is that This reduces  the chance of automated notices to some extent. The data may be incorrect but still I decided to do it that way. Dividends, capital gains etc need to be shown correctly. Credit card rotations (in lakhs) should have been dead a year ago. (I also used to do a few thousands for reward points, cashback but decided it is not worth taking risk anymore).

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Comrade Comrade
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Dont overspend too much for milestones or making card charges free.. Keep ltf card as much as possible as there u have to only spend when required..... 

Dont spend such a amount like 50 lakh-60 lakh.... Which u cant explain in an event of notice coming from IT dept.... Never spend more than 10 lakh from one bank card..... Like if u have 3 cards from icici... The total spend from all three shouldn't go above 10 lakh... Or else bank is obliged to report it to IT dept... Also don't make bill payment of more than 1 lakh cash per financial year from any branch for any credit card.... 

Deal Subedar Deal Subedar
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This. Pretty much covers everything. I will add 1 thing,

1.  Don't rotate money using credit cards often. If you must get cards from different banks and keep the expenses under 10lak per card, per bank.

Tech Guru Tech Guru
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Dont do fleeloading stuck_out_tongue_winking_eye

Deal Cadet Deal Cadet
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Lol, true. That's why I started this thread ki freeload utna hi karu ki ITD ka notice na aaye stuck_out_tongue_winking_eye

Commentator Commentator
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I feel it is safer to file returns based on the AIS i.e. file returns as per the user data automatically populated. My belief is that This reduces  the chance of automated notices to some extent. The data may be incorrect but still I decided to do it that way. Dividends, capital gains etc need to be shown correctly. Credit card rotations (in lakhs) should have been dead a year ago. (I also used to do a few thousands for reward points, cashback but decided it is not worth taking risk anymore).

Critic Critic
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My simple advice: If you have the free time & motivation to rotate lakhs on credit cards then spend that extra time & motivation to get a better job/salary, you will go far in life by following this. Someone I know got a 1.5 lakh per month salary job within 3-4 years of his professional career & he never had a credit card nor he is interested in getting one now.

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