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

Credit card reporting threshold applies per card; report total payments for each card exceeding the threshold. The reporting threshold for credit card payments in the Income Tax Return applies per credit card. Taxpayers must aggregate all payments made during the year against each individual credit card, identify cards whose annual payments meet or exceed the threshold, and disclose the total payments for those qualifying cards; cards with annual payments below the threshold need not be reported.