Credit card Transaction limit or How to Avoid Tax Notice.

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.