Get 3 Yrs of CCI Pro Membership at Greater Value. Subscribe Now!

Credit cards

Save Share

This query is : Resolved

ABDUL KHALIQ (Querist)

26 December 2013 My collegue regularly uses his credit card for booking air tickets online for his officials. which may be sometimes more than 5lakhs perannum. Does it effect his income tax profile and it dept may question him for his huge transactions. pl reply Does the it dept will ask to show the income as per the expenditure and pay tax ?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)

26 December 2013 All banks are required to give details of credit card usage in excess of Rs. 2 lakhs in an AIR (Annual Information Return) to the Income Tax Department.

If the person does not file his return of income or shows income which does not justify the expenditure incurred then he will be questioned by the department.

@VaibhavJ

@VaibhavJ (Expert)

26 December 2013 Hi

He should maintain supporting of all transactions to prove that transaction was done for office work in case of any scrutiny.

Thanks//VaibhavJ

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now