SFT regarding credit card usage

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If your IT return shows an SFT for credit card usage, even if others used your card, you must file your return. While there's no direct prohibition, significant spending exceeding your income could trigger queries. Be prepared to explain these transactions and potentially provide confirmation from friends and family. Also, ensure any cash received for payments adheres to legal limits.

SHYAM KRISHNAN K

SHYAM KRISHNAN K (Querist)

26 July 2022 While filing IT return, my 26 AS has been reported an SFT of 17 lakh regarding usage of credit card. Actually this spending was not fully pertaining to me. My family and friends using my card for their purchase and i collect money aginst the same on my card due date. Is there any problem in this?. Is this require any further clarification?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

26 July 2022 No problem you have to file ITR.
Avoid using your card by others.

Adv. Ravish Bhatt, ADIT, CIOT

Adv. Ravish Bhatt, ADIT, CIOT (Expert)

29 July 2022 You allowed your card to be used by relatives and friends and collected money from them for payment. Per se there does not appear any prohibition against such transactions. However, if credit card transactions are of 17 lacs and let’s say your income is of 10 lacs, there may be queries pertaining to this and you should be able to explain things properly. You may need to provide confirmation from relatives/ friends about transactions having been done on their account. Additionally, if you accepted money from them for payment of card bills, whether you could accept more than INR 20K in cash (assuming you did so) may also be a question which may need to be properly addressed.

Author: Advocate Ravish Bhatt
Gmail: ravishdbhatt@gmail.com
Link to Linkedln Profile: https://bit.ly/3IDGfsU

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