Clarification - CBDT

[Guest]

Dear Freinds, In ITR Forms for AIR details limit of Rs.2 Lacs for credit card is for a single credit card or all credit cards put toghether. Is there any clarification from CBDT if so please give Notification/ circular no. Best Regards

[Guest]

One important aspect of the new Income Tax Return form is that taxpayers are required to mention the amount of certain types of high value transactions carried out by them. These transactions are already being reported to the tax authorities through Annual Information Return filed by various agencies such as banks, credit card companies, mutual funds, RBI, property registrars, etc. Your query regarding credit card: Payments totalling Rs 2 lakhs or more in the year made against bills raised in respect of a credit card. ("Mark the word 'a' credit card", which signifies the limit is for each credit card"). The important point here is that this clause is applicable if the total of all payments during the year for a credit card is Rs 2 lakh or more. Let me explain: if you have used three credit cards during the FY 2007-08 and you pay a total of Rs. 1.9 lakhs against the first credit card, Rs. 1.4 lakhs against the second credit card and Rs 50,000 against the third credit card, then you need not report anything since you did not pay Rs 2 lakhs or more against a single credit card. However, in FY 2007-08, if you pay total Rs 2.2 lakhs against the first credit card, Rs 2.7 lakhs against the second credit card and Rs 1 lakh against 3rd credit card, then you need to mention an amount of Rs 4.9 lakhs under this item. This is the total amount of payments against those credit cards whose total payment is Rs 2 lacs or more! Hope the above clarifies your query.

AI Summary

Income Tax Clarifies: Rs. 2 Lakh Reporting Limit Applies Separately to Each Credit Card in ITR Forms A user inquired whether the Rs. 2 lakh limit for credit card transactions in Income Tax Return (ITR) forms applies to a single card or all cards combined. The response clarified that the limit applies to each credit card separately. Taxpayers must report payments totaling Rs. 2 lakhs or more for any single credit card in a financial year. For instance, if payments on one card exceed Rs. 2 lakhs, it must be reported, but if no single card reaches this threshold, reporting is not required. The explanation provided examples to illustrate this clarification.