CREDIT CARD SPENDING 30L ITR SUGGESTION

[ANTESH KHOKER]

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Hello dear community members,
I am seeking advice from any CA or ITR experts here.
I need detailed information regarding my credit card spending in relation to RBI rules. As per my understanding, a credit card holder can spend up to 10 lakh per year, but my spending this year is approximately 30 lakh. I haven't filed any ITR in previous years.
I want to know:

1. If I file a return now, what amount should I declare?
2. What would be the charges or penalties involved?

My higher spending this year is due to purchasing iPhones for my family and friends, as well as shopping for my brother's wedding. I am quite worried and would appreciate any guidance on the process.
This information will be helpful not only for me but for others in a similar situation.
Thank you,Antesh

 

[wcgxlr8]

Following to see expert answers

 

[abhimarda]

Here's a refined version of your message to post in the community:

---

Hello dear community members,
I am seeking advice from any CA or ITR experts here.
I need detailed information regarding my credit card spending in relation to RBI rules. As per my understanding, a credit card holder can spend up to 10 lakh per year, but my spending this year is approximately 30 lakh. I haven't filed any ITR in previous years.
I want to know:

1. If I file a return now, what amount should I declare?
2. What would be the charges or penalties involved?

My higher spending this year is due to purchasing iPhones for my family and friends, as well as shopping for my brother's wedding. I am quite worried and would appreciate any guidance on the process.
This information will be helpful not only for me but for others in a similar situation.
Thank you,Antesh

There is no such rule that a credit card holder can spend only Rs 10 lakhs per year. You can spend any amount which your credit card and income supports. However, banks report the expense of more than 10 lakhs in a financial year. That too if you have spent this amount on multiple credit card if multiple banks and for each bank (not necessarily each card) the annual spend is less than Rs 10 lakhs then it will not be reported. However, if you have got such kind of high limits on your credit cards, I assume you have good income source as well else how the bank is giving you such high limit. If at all there is any bank on whose card(s) you have spent more than 10lakh..say 15 lakhs...then it is expected that your income should be more than that amount atleast. If you don't have any meaningful income, filing a high income return will mean you have to pay high taxes on such incomes.

 

[Anil98]

No worries . Just file a return on income tax portal for the real income you have earned. No notice will be served to you for such transactions and even if such a notice do actually come then a reply can be given to authorities regarding the payments you made.