INCOME TAX ON CREDIT CARD LIMIT

To keep a watch on high value transactions undertaken by the taxpayer, the Income-tax Law has framed the concept of statement of financial transaction (SFT) or reportable account. With the help of the statement the tax authorities will collect information on certain prescribed high value transactions undertaken by a person during the year.

Spending Limit of Credit Card

Payments made by any person of an amount aggregating to- a banking company or a co - operative bank or any other company [As amended by Finance Act, 2022]

(i) Rs. 1 lakh or more in cash or

(ii) Rs. 10 lakh or more by any other mode,

Against bills raised in respect of one or more credit cards issued to that person, in a financial year.

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CHETNAA GOYAL

FCA, B.COM, More than 10 years of Experience in Direct Tax

Know Your Credit Card Spending limit to avoid Income Tax Notice

INCOME TAX ON CREDIT CARD LIMIT

Spending Limit of Credit Card

CHETNAA GOYAL

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