Hii all, Please respond to my query.
I have 5 credit cards of different banks. My friends and family members use my credit card for all the offers and discounts available on several e-commerce websites these days and at the time of the payment of my credit card billing cycle they transfer me the amount through online mode and I make the required payment to respective credit cards.
The main issue is that the total cumulative bill of all credit cards is around 2.0 lakh average on a MONTHLY basis. This 2.0 lakh amount also includes the EMIs of Personal Loan taken against credit card which is nearly 40 thousand.
My YEARLY salary is 7-8 Lakh per annum.
Every transaction whatsoever is online, no cash involved anywhere.
Should I be worried and if so PLEASE tell which SECTIONS/RULES of Income Tax will be applicable to me.
Please Reply🙏
As per Specified Financial Transactions (SFT) related to credit card payments...if in a financial year more than Rs. 10 lakhs payment is made through credit card, the credit card company/bank is required to give the details of the same to the Income Tax department. Hence, there might be a flag from the department because of disproportionate spending as compared to your income because of your spending of Rs. 24 lakhs (assuming 2 lakhs per month) while your income is 7-8 lakhs. Even if there are 5 different card companies, since your PAN is with the bank the data can be provided if required to the department.
Hence, it is advisable to avoid the above practice although it is not a big issue since you can explain the same to the department; but it will be tedious.
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