Friend deposited Rs. 1 lakh cash against my credit card dues on my behalf
Dear expert Professionals,
Recently I was travelling to Delhi with cash of more than 1 Lakh for a family trip. That was my savings over the period of time from house/family expenditure. While returning back to Kolkata from Delhi I handed over the money to my friend in Delhi and ask him to deposit the money in local HDFC bank against my credit card where there was an outstanding of Rs. 127000.
After a week or so my friend deposited that cash of Rs. 100000 which I handed over to him in a local HDFC bank in Delhi against my credit card.
As per last year 26AS my income from salary was Rs. 1800000. Hence I come under 30% tax bracket.
Later on I came to know that paying credit card dues with cash of Rs 1 lakh is prohibited in IT laws as this will be treated as High Value Transaction. Hence an income tax notice is possibly on its way. Can you please suggest how to deal with it.
Please note I don't do any kind of cash transaction whatsoever except withdrawing some amount from ATM for family expenditure.
Please suggest.