Credit Card - Add-on Cards Tax Liability

Credit Card - Add-on Cards Tax Liability

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Jiwvql0
Budding Star
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Hey guys!

Hope you all are doing well and have enjoyed yourselves during the festive season!

I have been having a doubt regarding the tax liability regarding add-on cards in credit cards and cannot find a suitable answer.

Consider a case where suppose my father is earning 15L per annum and I’m earning 15L per annum.

My father suppose has a SBI Credit Card and I instead of applying for a new one take an add-on card from my father and do transactions of 10L per annum with the add-on card obtained from his primary card.

Now my question is that if my father doesn’t do a single transaction and I do all the transactions and pay for my add-on card bill from my bank account which is in my name, then will I be liable for the payments done in my credit card or will my father have to pay the taxes since it’s an add on card?

I would be greatful if you can solve this as I have to take a decision based on this.

Note:- All the figures are imaginary just to make you understand. I currently have 0 income toungueout

Thanks!

15 Comments  |  
10 Dimers
Cropped 818197654
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Bro, all the liabilities in add on card (including tax liabilities) lies only on the primary card Holder. Whatever you pay would be come under the tax preview of your dad. It doesn’t make any difference whether you are paying the bills for your dad credit cards. Credits are are not come under the preview of credit card unless you are doing more than 10lakh transactions in a year and not filling income tax returns or filling it with nominal income. If your father is showing income of 10-15 lakh per annum, you would never face any problem.

Bal ganesh
Deal Lieutenant
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All expenses are booked on primary card holders name hence all liabilities also rest on primary card holder.

Yellow11 1256751 480x300 v1
Deal Subedar
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Addon card is nothing but the same card with a different number
Just like HDFC netsafe where different OTUV cards can be generated but all spend are goin from the real card
Hence using his primary card or addon card does not make any difference

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drupal wrote:

Addon card is nothing but the same card with a different number
Just like HDFC netsafe where different OTUV cards can be generated but all spend are goin from the real card
Hence using his primary card or addon card does not make any difference

hdfc add on card have same number as well toungueout

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nomag wrote:

hdfc add on card have same number as well toungueout

@nomag
Is it ?
I thought add on card will have different card number.
Could you please check and confirm?
I have other bank add on CCs . Their numbers are different.

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ramadesidime wrote:

@nomag
Is it ?
I thought add on card will have different card number.
Could you please check and confirm?
I have other bank add on CCs . Their numbers are different.

In case of HDFC, its the same card number and every other detail except the card holder name. The POS transactions gets differentiated in statement.

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Deal Subedar
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andromeda wrote:

In case of HDFC, its the same card number and every other detail except the card holder name. The POS transactions gets differentiated in statement.

they have some sort of data on chip to distinguish those add on cards

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ramadesidime wrote:

@nomag
Is it ?
I thought add on card will have different card number.
Could you please check and confirm?
I have other bank add on CCs . Their numbers are different.

yes..everything is same except name

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nomag wrote:

yes..everything is same except name

ummm..

Then, how to identify and distinguish the transactions?

For example, there is a transaction at amazon, how do we identify who did that transaction among the add on card holders?
If one add on card is compromised, do we have to cancel all cards?

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Deal Subedar
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ramadesidime wrote:

ummm..

Then, how to identify and distinguish the transactions?

For example, there is a transaction at amazon, how do we identify who did that transaction among the add on card holders?
If one add on card is compromised, do we have to cancel all cards?

Transaction is automatically identified by HDFC card and will be billed with add-on card section in statement.
Not sure if we need to change every card but add on card have separate chip, only display things are same and therefore, should not be an issue with other cards

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nomag wrote:

Transaction is automatically identified by HDFC card and will be billed with add-on card section in statement.
Not sure if we need to change every card but add on card have separate chip, only display things are same and therefore, should not be an issue with other cards

True. This is how it is. And i think both the cards need to be changed if even one is compromised because even the cvv is same.

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Deal Cadet
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ramadesidime wrote:

ummm..

Then, how to identify and distinguish the transactions?

For example, there is a transaction at amazon, how do we identify who did that transaction among the add on card holders?
If one add on card is compromised, do we have to cancel all cards?

I guess CVV number will be different so bank’s system will differentiate based on that.

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watever wrote:

True. This is how it is. And i think both the cards need to be changed if even one is compromised because even the cvv is same.

How can system differentiate between 2 cards with exact same details incl even cvv number when doing an online transaction,this is only possible if card is sending something online which is unique to it only(in case of physical transactions,chip provides this unique data).

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guest_999 wrote:

I guess CVV number will be different so bank’s system will differentiate based on that.

no, its same

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Deal Subedar
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guest_999 wrote:

How can system differentiate between 2 cards with exact same details incl even cvv number when doing an online transaction,this is only possible if card is sending something online which is unique to it only(in case of physical transactions,chip provides this unique data).

it differentiate for physical transaction

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