Uses of Credit Card through UPI.

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This query is : Resolved

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Using a credit card linked to UPI for significant household expenses, like the Rs. 9 lakh mentioned, might raise questions from the Income Tax department, especially if it seems disproportionate to your declared income. While not guaranteed, a notice is a possibility. However, paying your credit card bills through banking channels and ensuring your declared income is reasonably close to your spending can significantly reduce the chances of any queries.

Prem Moolwani

Prem Moolwani (Querist)

29 April 2024 I have made payments of house hold exps approx Rs. 9,00,000/- in FY 2023-24 through UPI Linked PNB Rupay Credit Card at various Shops/Showrooms/Malls etc. at different UPI Scanners. My credit Limit is Rs. 50,000/- per month. In previous FY 2022-23, I have filed an ITR of Rs. 6,50,000/- of Gross Total Income. Will I receive any Income tax notice for using credit card? Give your expert advice?

Nikhil Kaushik

Nikhil Kaushik (Expert)

01 May 2024 a notice can be issued for several reasons including abnormal spending. So, there always is a possibility of such a notice. But not necessary.

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

02 May 2024 In addition, mostly it depends upon the mode of payments of credit card bills. If by banking mode, and if your gross income be near about the spending, chances of any query would be minimum.

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