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.

 

[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.

 

[Rohith_Kumar_Sp]

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

So are they monitoring income or spends? I'm confused.

If all payment is income then effectively my income would match my spends right? This money you gave yourself.

 

[VijayflyRaven]

If you are working in xyz company and earn a salary of 30 lakhs, then it is your income.

If you spend 15 lakhs in axis credit card(s), then it is your spend or expense. It will be reported by Axis.

A 30 lakh income and 15 lakh spent might be ok. Imagine the other way around. That will be suspicious.

The credit card bill paid by you is not income. What OP mentioned is that your income must match what you pay to the credit card.

So are they monitoring income or spends? I'm confused.

If all payment is income then effectively my income would match my spends right? This money you gave yourself.

 

[VISHESH_BANSAL]

So are they monitoring income or spends? I'm confused.

If all payment is income then effectively my income would match my spends right? This money you gave yourself.

Suppose MR X is salaried and earning salary of 10 Lakh P.A

He did payments worth 12 Lakh in a XYZ Card in a Financial Year.

Upon receiving any notice or Scrutiny , he has to clarify from which source he had made payment worth 2 lakh

If he is able to satisfy AO with his answers then all is good otherwise it will be treated as his undisclosed income .

Undisclosed income are treated separately.
Refer Income Tax Act to know more on How IT Officals will treat this undisclosed income

 

[hellobois]

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

can you dm me? need some hep, i can't message you.

 

[Copycat]

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?

This has already been explained well earlier by others in response to your post
I'll just use your specific example
You have made 2 payments: 80K and 10K. So a total of 90 K in payments. That is considered
In your example this is the same as the spends
The reason payments are considered instead of spends is because you may not be able to pay back everything you have spent on using your CC. You may even default ultimately on payment
The IT department is primarily interested in the outgoing for you (i.e the actual payments that you make) because they use this to match against the income you have (salary, income from other sources). If the payments made by you are more than the income you receive, it is a red flag for them

 

[CardSeeker]

7 days seem very high. What will be the value date? Many might have late fees if it is 7 days and they did not know.

rarely it takes 5 -7 days
generally settled within 3 working days

 

[CardSeeker]

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?

no

 

[CardSeeker]

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

statement itself wrong 🙂

 

[ilavaeniyil]

Hi,

Need help in paying my credit card bill. I wasn't aware of using debit cards to get cashback.

So I have 2 credit card bills to pay,

1) IDFC First credit card bill -> 48K (its my parents but its one time expense actually)
2) HDFC credit card bill -> 47K

I have below debit cards,

1) HDFC Easyshop Platinum Preferred (Mastercard) - This card definitely gives cashback but how to use it? IDFC First isn't listed in BillPay via netbanking. Also, can't pay HDFC credit card bill also. What to do?
2) ICICI World debit (Mastercard)
3) Standard Chartered Priority Banking (Visa Infinite) - Standard chartered also BillPay (similar to HDFC bill desk). Does this card provides cashback?
Can someone guide me? Thanks

 

[CardSeeker]

Hi,

Need help in paying my credit card bill. I wasn't aware of using debit cards to get cashback.

So I have 2 credit card bills to pay,

1) IDFC First credit card bill -> 48K (its my parents but its one time expense actually)
2) HDFC credit card bill -> 47K

I have below debit cards,

1) HDFC Easyshop Platinum Preferred (Mastercard) - This card definitely gives cashback but how to use it? IDFC First isn't listed in BillPay via netbanking. Also, can't pay HDFC credit card bill also. What to do?
2) ICICI World debit (Mastercard)
3) Standard Chartered Priority Banking (Visa Infinite) - Standard chartered also BillPay (similar to HDFC bill desk). Does this card provides cashback?
Can someone guide me? Thanks

pay both bills in mobikwik using easyshop platinum u will get 1% cb

 

[Wealth is my birth right!]

Hi,

Need help in paying my credit card bill. I wasn't aware of using debit cards to get cashback.

So I have 2 credit card bills to pay,

1) IDFC First credit card bill -> 48K (its my parents but its one time expense actually)
2) HDFC credit card bill -> 47K

I have below debit cards,

1) HDFC Easyshop Platinum Preferred (Mastercard) - This card definitely gives cashback but how to use it? IDFC First isn't listed in BillPay via netbanking. Also, can't pay HDFC credit card bill also. What to do?
2) ICICI World debit (Mastercard)
3) Standard Chartered Priority Banking (Visa Infinite) - Standard chartered also BillPay (similar to HDFC bill desk). Does this card provides cashback?
Can someone guide me? Thanks

3. Bbps won’t give u option to choose via dc it default picks funds from savings account to cc bill pay and for utilities it give option by scb cc in drop-down if ur holding a stanC cc

 

[VijayflyRaven]

Standard chartered bill pay system has too many bugs and fails often. Refund process required dispute.

 

[Wealth is my birth right!]

Standard chartered bill pay system has too many bugs and fails often. Refund process required dispute.

While on transit used to do fastag recharges via cc so far no failures
After looking at your comment I want to be cautious