Can i pay taxes using Axis magnus and Vistra and get RP?

[manas_rock]

Need to pay advance tax of 40 lakhs in March.
Infinia no longer gives RPs for tax payment.
So, only axis magnus and vistara infiniter are the best cards?
Am I right?

 

[theranos]

if you have axis reserve then it's best for above magnus spends or get hold of Centurion or Citi primier miles and prestige combo

 

[theranos]

if you have axis reserve then it's best for above magnus spends or get hold of Centurion or Citi primier miles and prestige combo

even axis burgundy private gives good returns....if paying 40lakh in advance tax you nrv should get you these cards atleast

 

[manas_rock]

if you have axis reserve then it's best for above magnus spends or get hold of Centurion or Citi primier miles and prestige combo

I have citi premier miles, but reward points are primarily for airline booking.
Tax payment reward point will be just 1% on premier miles, and gateway payment charges will also be around 1%. So zero benefit.

Don't have axis reserve. It is pretty expensive.

 

[theranos]

I have citi premier miles, but reward points are primarily for airline booking.
Tax payment reward point will be just 1% on premier miles, and gateway payment charges will also be around 1%. So zero benefit.

Don't have axis reserve. It is pretty expensive.

use it prestige redemption to make premier miles point 1=1.8 so 0.8%benifit but still reserve beats it

if you're looking at fee of 60k + it's totally worth it as you get points for fee paid +reward rate moves to late single digits for 40 lakhs it's really worth the fee ileven if used and closed after using once also ...

 

[thanix]

Need to pay advance tax of 40 lakhs in March.
Infinia no longer gives RPs for tax payment.
So, only axis magnus and vistara infiniter are the best cards?
Am I right?

Just curious whether you have paid similar amount using credit cards in the past? Won't this high amount doesn't get the card blocked?

 

[gurbina]

I wonder how would you even get such credit limits to pay that unless it's a charge card. And even unless you're a billionaire you might still need to ring their customer service to let them know ahead.

Also does IT allow such large payments via credit card?

 

[manas_rock]

Just curious whether you have paid similar amount using credit cards in the past? Won't this high amount doesn't get the card blocked?

No, I only used net-banking in the past.
I have got 3 new premium cards (total 6- each for my wife too) in last 30 days- Infinia, Magnus, Vistara axis infinite.
It is 20L for me and 20L for my wife.
So, I can do 7-8 lakhs per card.
Also, I can do some in Feb end, and some in March.

But, then again I will need to pay 20L tax in July, Sep, Dec. each month
So, I am looking for best cards for tax payment.
With magnus- I have decided to pay 1 lakh tax every month- for both me and wife- total 24 lakhs using magnus. (12 lakh per person)

 

[Hiren Bhayani]

Go for easy shop Business debit card of HDFC bank. It gives 5% cash back for tax payment. Don't know much about it but you can google it. I have that card but never used for it.

 

[manas_rock]

Go for easy shop Business debit card of HDFC bank. It gives 5% cash back for tax payment. Don't know much about it but you can google it. I have that card but never used for it.

It has max cash back of only Rs. 750 per month. That’s too low.

 

[satyamkaushik]

Based on your existing cards, my suggestion would be to pay the entire amount in parts through Magnus. That ways you can meet the 1L monthly milestone and get bonus points. For the remaining amount you would be getting a flat 4.8% reward rate.

In case you don't wish to redeem it for miles, get the SC Ultimate. Make 1L payments in parts for the monthly milestone and for the remaining amount you would get a flat 3.33% reward rate.

 

[manas_rock]

Based on your existing cards, my suggestion would be to pay the entire amount in parts through Magnus. That ways you can meet the 1L monthly milestone and get bonus points. For the remaining amount you would be getting a flat 4.8% reward rate.

In case you don't wish to redeem it for miles, get the SC Ultimate. Make 1L payments in parts for the monthly milestone and for the remaining amount you would get a flat 3.33% reward rate.

thanks. Magnus has 4.8% reward rate? (excluding milestone payment) by using miles transfer for vistara I guess?

 

[anirban.choudhuryanirban.choudhury is verified member.]

No, I only used net-banking in the past.
I have got 3 new premium cards (total 6- each for my wife too) in last 30 days- Infinia, Magnus, Vistara axis infinite.
It is 20L for me and 20L for my wife.
So, I can do 7-8 lakhs per card.
Also, I can do some in Feb end, and some in March.

But, then again I will need to pay 20L tax in July, Sep, Dec. each month
So, I am looking for best cards for tax payment.
With magnus- I have decided to pay 1 lakh tax every month- for both me and wife- total 24 lakhs using magnus. (12 lakh per person)

I would suggest not to rely on credit card rewards for such long term . Credit card policies keep on changing every month , and I dont think Magnus will continue to provide those milestone ER for another 1 year as its already almost a year without any devaluation , a major devaluation in terms of transaction charges or no reward points on rent should be on the door in any upcoming month , not sure about government spending though. So its better use the cards till the offer expires , and for long term make some other plans mostly using debit cards or internet banking.

 

[manas_rock]

I would suggest not to rely on credit card rewards for such long term . Credit card policies keep on changing every month , and I dont think Magnus will continue to provide those milestone ER for another 1 year as its already almost a year without any devaluation , a major devaluation in terms of transaction charges or no reward points on rent should be on the door in any upcoming month , not sure about government spending though. So its better use the cards till the offer expires , and for long term make some other plans mostly using debit cards or internet banking.

even normal reward point of Magnus or Vistara infinite of 3-4% is very good in my opinion.
My taxes are expected to double in 3 yrs.

 

[manas_rock]

you don't mind, what type of business/profession are you in?

I think a good CA might provide you better returns than Credit cards, just my opinion or if this is the amount after CA, then check below posts:

I have a CA. He can't help. Income is from capital gains in stocks. There is no exemption there.

 

[satyamkaushik]

thanks. Magnus has 4.8% reward rate? (excluding milestone payment) by using miles transfer for vistara I guess?

Yes the base rate for the Magnus is 4.8% currently, if redeemed for mile transfers.

Also if you you use the Canara Bank gateway for the payment, the charges would be around 0.45% plus GST. On a net basis it would still be beneficial for you to make the payment through credit cards.

 

[satyamkaushik]

I have a CA. He can't help. Income is from capital gains in stocks. There is no exemption there.

In case you trade regularly and have high volumes you can explore the option of considering this as a business activity and accordingly claim this income as a business income under PGBP head.
Doing so would allow you to claim all business related expenses like brokerage, interest on leverage, depreciation etc and you will be required to pay taxes on only the net income.

Please do note that if you choose to consider this as a business activity once instead of Capital Gains, you will not be able to revert back to getting it taxed at a flat rate under the Capital Gain taxation.

 

[manas_rock]

In case you trade regularly and have high volumes you can explore the option of considering this as a business activity and accordingly claim this income as a business income under PGBP head.
Doing so would allow you to claim all business related expenses like brokerage, interest on leverage, depreciation etc and you will be required to pay taxes on only the net income.

Please do note that if you choose to consider this as a business activity once instead of Capital Gains, you will not be able to revert back to getting it taxed at a flat rate under the Capital Gain taxation.

Ya, I know that. I don't have any business expenses. Nothing.
Stock trading is all online. Minimal expenses.
Even if I show some expenses somehow, it will still lead to 2x increase in tax bill.

 

[manas_rock]

Yes the base rate for the Magnus is 4.8% currently, if redeemed for mile transfers.

Also if you you use the Canara Bank gateway for the payment, the charges would be around 0.45% plus GST. On a net basis it would still be beneficial for you to make the payment through credit cards.

And these base points will get accrued from the first month itself. Right?
Though the milestone award may start from 2nd month only.
I have logged in only in axis mobile app so far.
Do I need to login in other portals like thriwe etc (it shows my mobile no is not yet registered), or can straightaway pay the bills?

 

[thanix]

Now milestone spend is also applicable from first month. Magnus provides renewal fee waiver at 15L spend. So you may pay a bit above 1L per month. Reserve will also be beneficial to you though it has a fee of 50000 but you get equivalent points at joining. Renewal fee is reversed for 25L spend. So it will be good for you. No fee from second year at 40L tax payment itself.

You can use Infinia for all of your non tax regular spends that earn points.