Best Way to pay Credit Card Bill

[kushal]

Guys I am redacting this post as I have been asked by the bank for non disclosure as mentioned in TnCs else my account would be suspended. They had asked me to remove this as this violates the TnC related to not getting reward points for CC payments.

 

[jack333]

Same variant u won’t get again
Ask for visa since you’re having a foreign trip in next month and visa have better exchange rate then they give visa exclusive with mc

MC has better exchange rate than visa

 

[mojo_jojo123]

Same variant u won’t get again
Ask for visa since you’re having a foreign trip in next month and visa have better exchange rate then they give visa exclusive with mc

ok.. I don't think Signature Select Visa Debit Card Gives reward in cheq app .. I wanted it for double dip ..

 

[Wealth is my birth right!]

MC has better exchange rate than visa

Yes I know it
Just gave few glossy words to get IndusInd cc guy convinced for applying second card

 

[phagocyte536]

I recently opened a hdfc regular savings account. I got millenia debit card with it.

Does this card also have some cashback via billpay like easyshop platinum has?

Went through this thread, so yes millenia DC also provides 1% up to 400.

1. Through mobikwik
2. Through Paytm

I will call the CC and see if I can upgrade to easyshop platinum DC without being charged for both in the current year

 

[phagocyte536]

How does this plan sound?

1. Pay CC bills through my Neu Plus UPI hack -> get 1% as neucoins
2. Pay Neu Plus CC bill through Platinum DC on paytm (because one can't pay hdfc cc on billpay) -> get 1% upto 750.

Overall 2%+ extended credit cycle till I hit the monthly limit.

The main problem with this plan is the IT. I will be paying 2X my spendings as credit card bills. Maybe I should cut the greed for the extra 1% 😅

 

[Wealth is my birth right!]

How does this plan sound?

1. Pay CC bills through my Neu Plus UPI hack -> get 1% as neucoins
2. Pay Neu Plus CC bill through Platinum DC on paytm (because one can't pay hdfc cc on billpay) -> get 1% upto 750.

Overall 2%+ extended credit cycle till I hit the monthly limit.

The main problem with this plan is the IT. I will be paying 2X my spendings as credit card bills. Maybe I should cut the greed for the extra 1% 😅

Perfect
Point no 2 MobiKwik I/o paytm
Yes never exceed cc spends than ur ITR on a FY

 

[jack333]

Perfect
Point no 2 MobiKwik I/o paytm
Yes never exceed cc spends than ur ITR on a FY

This can only be done as your neu card spends will be the sum of its own spend of last month+other cards spends of last month+other card spends of this month's. Moreover you'll need to have double the credit limit if you want to pay its own bill. What I concluded is we will easily reach 10 lakh like this in 2-3 months so avoid it. Best for increasing the spend limit in hdfc but as someone already mentioned from May onwards hdfc is going to report credit limit to cibil

 

[phagocyte536]

Yes

This can only be done as your neu card spends will be the sum of its own spend of last month+other cards spends of last month+other card spends of this month's. Moreover you'll need to have double the credit limit if you want to pay its own bill. What I concluded is we will easily reach 10 lakh like this in 2-3 months so avoid it. Best for increasing the spend limit in hdfc but as someone already mentioned from May onwards hdfc is going to report credit limit to cibil

Yes ofcourse the two limitations are
1. Neu card credit limit
2. 750 monthly cap of platinum DC

I will use this selectively so that my overall CC spend doesn't balloon up too much.

Also can I spend more on my CC wrt my ITR by citing my wife also uses my CC (wife is employed and we have shifted 90% spends to my cards). So together our CC spends will be far less than both the ITRs.

I believe this will be a reasonable justification if IT ever wants to question

 

[Rohith_Kumar_Sp]

Perfect
Point no 2 MobiKwik I/o paytm
Yes never exceed cc spends than ur ITR on a FY

It deosnt make sense to me. I can withdraw 50k and give it to my parents who put it in thier bank. And they withdraw 50k after 15 days and give it to me and I put it to my bank. Imagine I did this 2 times a month, it would technically considered 1L income per month which is more then my income for year, but how is that illegal? It's my own money, all I did was lend it to my parents and get it back.

 

[phagocyte536]

It deosnt make sense to me. I can withdraw 50k and give it to my parents who put it in thier bank. And they withdraw 50k after 15 days and give it to me and I put it to my bank. Imagine I did this 2 times a month, it would technically considered 1L income per month which is more then my income for year, but how is that illegal? It's my own money, all I did was lend it to my parents and get it back.

Well the expectation is you never do CC->bank. These are loopholes, not features

 

[Rohith_Kumar_Sp]

Well the expectation is you never do CC->bank. These are loopholes, not features

If so why do paytm even have legal options to add money though CC?

 

[phagocyte536]

If so why do paytm even have legal options to add money though CC?

End of the day you have to defend to IT department, not paytm

 

[Rohith_Kumar_Sp]

End of the day you have to defend to IT department, not paytm

There's nothing to defend here, if you can buy product with cc and then sell it and deposit it to bank, it's still cc to bank. What is there to defend?

 

[Wealth is my birth right!]

Anyways this upi cc bill payment won’t last long May be a couple of months more
I too calculated my ITR and post june not decided to use upi cc bill pay loophole even though it exists since i will be exceeding the ITR vs spend since dual spend situational we will be if HDFC Bank and other cc I say Axis bank since magnus we all cross 12l sure
So all of us have to take risk on one side own considerations
Just adding my neu and Magnus card ss todays position for comparison

 

[VijayflyRaven]

There's nothing to defend here, if you can buy product with cc and then sell it and deposit it to bank, it's still cc to bank. What is there to defend?

This is how it goes with the IT. They see your spend is way greater than income. They send notice. Now one has to take statements to them and explain it. Then the AO will assess and ask you to pay x amount. Now you can either pay that or hire a CA and fight it. These things take time and money.
As someone said, keep transactions very low in one bank credit card.

 

[Rohith_Kumar_Sp]

This is how it goes with the IT. They see your spend is way greater than income. They send notice. Now one has to take statements to them and explain it. Then the AO will assess and ask you to pay x amount. Now you can either pay that or hire a CA and fight it. These things take time and money.
As someone said, keep transactions very low in one bank credit card.

Is the spends they calculate or debits or Just the credit card bill? If I use 90k and pay 80k everymonth before the bill generation, what is it taking into account? The 10k bill? Or 90k spends? Or 80k income?

 

[VijayflyRaven]

Is the spends they calculate or debits or Just the credit card bill? If I use 90k and pay 80k everymonth before the bill generation, what is it taking into account? The 10k bill? Or 90k spends? Or 80k income?

It is always the spends. Paying before due date won’t help reduce spends.

 

[VISHESH_BANSAL]

Is the spends they calculate or debits or Just the credit card bill? If I use 90k and pay 80k everymonth before the bill generation, what is it taking into account? The 10k bill? Or 90k spends? Or 80k income?

As per Income Tax Act,
Aggregate payment to a Credit Card in online mode should not exceed 10 Lakh in a Financial Year .
If it exceed 10 lakh then Bank will report it to IT department.

This will definitely increase chances of IT notice.

But if you made payment below 10 lakh it does not mean you will never get IT notice but very less chances.

 

[phagocyte536]

All payments made by you would be considered your income. Irrespective of bill amount

Is the spends they calculate or debits or Just the credit card bill? If I use 90k and pay 80k everymonth before the bill generation, what is it taking into account? The 10k bill? Or 90k spends? Or 80k income?

 

[VijayflyRaven]

Just to add:

The 10 lakh rule is there. Apart from that, if one single transaction is >1 lakh, that is highlighted too. Where ever possible, spend less than 1 lakh, especially if you have 0 income.