07 November 2024
Hello, I am planning to buy a mobile phone on EMI, but I do not have a credit card. My friend has agreed to use his credit card for this purchase, and my company will reimburse the EMI amount to me each month. To claim this reimbursement, I need to submit the following documents to my company monthly: 1) The phone bill. 2) The credit card statement showing the EMI debit amount (from my friend’s card). 3) My bank statement showing the same amount transferred from my account to my friend’s account each month.
The EMI cost is around ₹9,100 per month, totaling over ₹1 lakh annually. My concern is whether my friend might be taxed on the amount I send him each month, as it could appear as income in his account.
Questions: Will my friend be liable to pay tax on these monthly reimbursements if they exceed ₹1 lakh over the year? If so, what is the best way to structure these transactions to ensure that this reimbursement isn’t considered taxable income for him? I would appreciate any guidance on how to handle this to avoid tax implications for my friend, as this amount is solely intended for the EMI payment of my phone.
07 November 2024
Better get your own credit card, will get within a week. Refer: https://www.idfcfirstbank.com/credit-card/credit-card-against-fixed-deposits or https://www.paisabazaar.com/fixed-deposit/credit-card-against-fixed-deposit/
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