Reg: it acts on credit card usage/ payments
This query is : Resolved
04 March 2013
Hi,
my question is - is there any limitations/ regulations on using credit card as per IT act? or what is the maximum usage limit for credit cards as per IT act..
For Example:
im having credit card limit of Rs. 1 lac.
since past 7 months my company using my card for office online payments an average of 1.5 lacs per month (so total nearly 10 lacs for 7 months) and all payments were directly made by company to my credit card A/c. with out affecting my savings/salary account.
Now my question is am i liable to pay any tax on usage of my card for this period. if yes how should i save my tax as all the transactions/ payments was made on behalf of company..
my question is - is there any limitations/ regulations on using credit card as per IT act? or what is the maximum usage limit for credit cards as per IT act..
For Example:
im having credit card limit of Rs. 1 lac.
since past 7 months my company using my card for office online payments an average of 1.5 lacs per month (so total nearly 10 lacs for 7 months) and all payments were directly made by company to my credit card A/c. with out affecting my savings/salary account.
Now my question is am i liable to pay any tax on usage of my card for this period. if yes how should i save my tax as all the transactions/ payments was made on behalf of company..
CA Suraj Lakhotia
(Expert)
04 March 2013
Dear Satish,
There wont be any tax liability on you.
However, note that if the total payments on credit exceeds Rs. 2 lacs a year, the details of the same is given to Income Tax Department under Annual Information Return by the bank.
Higher the spend, higher chances of notices/scrutiny.
It is advisable to take Corporate Card on company's name for all office related payments.
There wont be any tax liability on you.
However, note that if the total payments on credit exceeds Rs. 2 lacs a year, the details of the same is given to Income Tax Department under Annual Information Return by the bank.
Higher the spend, higher chances of notices/scrutiny.
It is advisable to take Corporate Card on company's name for all office related payments.
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