Mostly transactions from family members can I should apply for ITR?

[Poco]

My bank transactions with same blood sisters and brother , on this basis can I should apply for ITR?

Family credit approx rs.10 lakh

Any consequences will I face if I show that transactions in profit or income in future?

I want ITR for credit card?

 

[TaxWiser]

My bank transactions with same blood sisters and brother , on this basis can I should apply for ITR?

Family credit approx rs.10 lakh

Any consequences will I face if I show that transactions in profit or income in future?

I want ITR for credit card?

Can you file ITR based on family transactions?​

Yes, you can file an Income Tax Return (ITR) even if your income is not from a traditional salary or business. If you've received Rs. 10 lakh in credits from your siblings into your bank account, the key question is: what is the nature of those transactions?

If the credits are:

• Gifts or personal transfers from your siblings (brother/sister), and not in exchange for goods/services, then they are not taxable under Section 56(2) of the Income Tax Act. Blood siblings fall under the exempted relative category.
• However, if you declare this as income or profit in future filings (e.g., to show higher income for credit card eligibility), it may raise questions unless you can justify the source.

Consequences of showing it as income:​

If you voluntarily declare these credits as income:

• You may be liable to pay tax on it, depending on the slab.
• It could trigger scrutiny if the source isn’t clearly documented.
• But it may help in building a financial profile for credit card or loan applications.

If you don’t declare it, and the Income Tax Department sees large credits in AIS/TIS (Annual Information Statement / Taxpayer Information Summary), they may send a notice asking for clarification.

Filing ITR for credit card eligibility:​

Yes, filing an ITR—even with zero or low taxable income—can help you:

• Establish financial credibility.
• Qualify for entry-level or secured credit cards.
• Show a paper trail of financial activity, especially if you plan to apply for loans or higher-limit cards later.

You can file ITR-1 or ITR-2, depending on whether you want to show this as exempt income or voluntary income.

Note: Always consult a qualified financial expert or tax consultant before making your final decision. Tax treatments can vary based on nuances, and personalized guidance ensures legal and financial safety.

(Source: TaxConcept, Personal Experience, Gemini AI)