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Payment on behalf of TRUST from personal credit card

ITR Filing 365 views 1 replies

Thank you for your precious time.

I am one of the Trustees in a Trust and looking after the finance department there.

I do come across scenarios where I cannot pay utility bills / online purchase payment (flipkart / amazon) directly from the bank account of the Trust or by cheque because of the two user bank authentication and merchant payment limit in the current a/c of Max Rs. 1 Lac.

So If the electricity bill for a month / quarter is more than Rs. 1 Lac then I cannot pay the electricity bill online directly from Bank due to merchant payment limit of maximum 1 Lac or say suppose, I have to purchase few materials for the TRUST from Ecommerce site like Amazon.in then I cannot pay that amount directly from Bank A/C of the Trust due to two two user bank authentication.

In this case I have TWO QUESTION

1. Can I pay the bills / eCom purchase payment from my personal credit card on behalf of the TRUST and transfer the same amount in my card or bank account for payment of the credit card bill generated?

2. If yes, is there any chance that the amount transferred will be counted as my income and I will be liable for income tax?

Thank you once again for you valuable time and reply.

Replies (1)
For payment of electricity bills you can setup an ecs facility with the bank so that it will get auto debited from trusts bank account

for other expenses you can get paid from the trust for those you incurred on your personal credit card provided the bills are in name of the trust.


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