Answer

1. F

   Facts

   Card companies report large card bill payments, and the department compares them with your declared income. If your income supports the spending, the reply is simple. Payments made for others or business expenses reimbursed should be explained.

2. P

   Provisions and law

   • Sec 133(6) (now Sec 252(1)(a))The officer can call for information useful for or relevant to any enquiry or proceeding
   • Sec 69 (now Sec 103)Unexplained investments can be taxed as income if the source is not explained
3. A

   Analysis

   If your salary is ₹24 lakh a year, ₹9 lakh of card spend is easy to explain from your bank account. Where the card was used for office travel reimbursed by your employer, attach the reimbursement proof. If a family member paid part of the bill, show their transfer. The aim is to show that the money came from disclosed income.

4. C

   Conclusion

   1. 1Download card statements for the year.
   2. 2Show which bank account paid each bill.
   3. 3Explain reimbursements or family payments with proof.
   4. 4Reply on e-Proceedings with a short summary.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.