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dhiraz

dhiraz

TF Ace
Hello Guys!
I Want to Discuss Something Please Read Carefully!
I Have a Offer on Paytm for Rent Payment Which is Flat 1.5% Cashback Up to ₹500 Each for Three Times in a Month Before 31-07-2022 23:59:00 Only Rent Payment of ₹15,000 or More.
So if I Pay ₹33,200 Three Times During Offer Period and 1.5% Cashback of ₹33,200 is ₹498 x3 = ₹1494 and the Fees of Paytm Rent Payment is Showing ₹481.40 x3 = ₹1444.20 So The Cost of Paymt Rent Payment Platform Fee is ₹1494(Cashback) - ₹1444.20(Fee) = ₹49.80 Negligible.

Now I Have ₹1,00,000 in My Own Family's Bank Account Through Rent Payment and I Transfer All the Amount to My IDFC First Bank Account Where I Get 4% Interest p.a. And IDFC Credit the Interest Monthly Basis So the Formula of Interest We Get in Savings Account =(100000*4/100)/365 is ₹10.96 Per Day. Total Interest I Get in 45 Day is ₹10.96 X45 = ₹493.15.
At the End After Doing All This Shit I Have ₹493.15 + ₹49.80 = ₹542.95.

My Credit Card Bill Generate on 15th of Every Month So I Have the Right Time to Do All This on 16th July.

And Also the Purpose of Doing All Is to Show the Total Credit Limit to Credit Bureau. I Just Got My Very First Credit Card From ICICI Bank Against FD of ₹1,50,000 and I Get the Credit Limit of ₹1,35,000. When I Get My Credit Card I Just Do a Electricity Bill Payment of ₹508 in the First Month and in the Second Month I Increase My Spending to ₹1835 but When I Spend More From Previous Bill the Report of My Credit Score is Show High Credit Utilization and My Cibil Score Drop From 779 to 728.

So Guys Please Suggest Me I Am Doing Right or Wrong, Good or Bad in This Community We Have Many Experienced Person So Please Suggest Me the Whole Idea Is Good or Just a Shit.
 
Last edited:
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Solution
Subhankar
@dhiraz The one you're trying to do is something called "manufacturing spend". Now let's check the consequences:
1. This will certainly give you the instant benefit you're looking for but you're basically doing "money laundering". I hope these two words are enough to realise what act it's. As you're not doing a proper rent payment and credit card's money is not your money, so it certainly have no source from your tax paid income.
2. Under Section 194-IB, rent-payments more than 50k per month is taxable, so make sure you're paying tax. In usual time you cut the 5% amount, keep it to yourself to pay tax and pay the rest of the rent to the landlord. So with 1L, the tax liability is there, and as you don't have any proper rent...
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dhiraz said:
Hello Guys!
I Want to Discuss Something Please Read Carefully!
I Have a Offer on Paytm for Rent Payment Which is Flat 1.5% Cashback Up to ₹500 Each for Three Times in a Month Before 31-07-2022 23:59:00 Only Rent Payment of ₹15,000 or More.
So if I Pay ₹33,200 Three Times During Offer Period and 1.5% Cashback of ₹33,200 is ₹498 x3 = ₹1494 and the Fees of Paytm Rent Payment is Showing ₹481.40 x3 = ₹1444.20 So The Cost of Paymt Rent Payment Platform Fee is ₹1494(Cashback) - ₹1444.20(Fee) = ₹49.80 Negligible.

Now I Have ₹1,00,000 in My Own Family's Bank Account Through Rent Payment and I Transfer All the Amount to My IDFC First Bank Account Where I Get 4% Interest p.a. And IDFC Credit the Interest Monthly Basis So the Formula of Interest We Get in Savings Account =(100000*4/100)/365 is ₹10.96 Per Day. Total Interest I Get in 45 Day is ₹10.96 X45 = ₹493.15.
At the End After Doing All This Shit I Have ₹493.15 + ₹49.80 = ₹542.95.

My Credit Card Bill Generate on 15th of Every Month So I Have the Right Time to Do All This on 16th July.

And Also the Purpose of Doing All Is to Show the Total Credit Limit to Credit Bureau. I Just Got My Very First Credit Card From ICICI Bank Against FD of ₹1,50,000 and I Get the Credit Limit of ₹1,35,000. When I Get My Credit Card I Just Do a Electricity Bill Payment of ₹508 in the First Month and in the Second Month I Increase My Spending to ₹1835 but When I Spend More From Previous Bill the Report of My Credit Score is Show High Credit Utilization and My Cibil Score Drop From 779 to 728.

So Guys Please Suggest Me I Am Doing Right or Wrong, Good or Bad in This Community We Have Many Experienced Person So Please Suggest Me the Whole Idea Is Good or Just a Shit.


View attachment 2436View attachment 2437View attachment 2438View attachment 2439View attachment 2440
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On 15th July I Did These Three Transactions of ₹33,200 with the Fees of ₹481.40*3=₹1,444.2 and get cashback of ₹1,500.
I Pay From my Paytm Wallet to My Friend's Paytm Merchant Account Scanning The QR.
And I Also Pay The Credit Card Bill From My HDFC Bank Debit Card To Get ₹750 worth of Cashback.
 
Last edited:
Upvote 0 Downvote
dhiraz said:
On 15th July I Did These Three Transactions of ₹33,200 with the Fees of ₹481.40*3=₹1,444.2 and get cashback of ₹1,500.
I Pay From my Paytm Wallet to My Friend's Paytm Merchant Account Scanning The QR.
And I Also Pay The Credit Card Bill From My HDFC Bank Debit Card To Get ₹750 worth of Cashback.

View attachment 2615View attachment 2616
Click to expand...
Bro you shouldn't have paid the bill before statement Generation.
Now it won't show the max limit of your ICICI card.
Also you should have done a FD for 40 days with that money
 
Upvote 0 Downvote
HyperBeast said:
Bro you shouldn't have paid the bill before statement Generation.
Now it won't show the max limit of your ICICI card.
Also you should have done a FD for 40 days with that money
Click to expand...
I Won't Pay the Bill Now I Pay I Enjoy 45 Days Interest Free Period During The Time The Amount Keep In My IDFC Account Where I Get 4% p.a. Return.
(100000*4/100)/365 is ₹10.96 Per Day. Total Interest I Get in 45 Day is ₹10.96 X45 = ₹493.15
I get ₹493.15 as a Interest from IDFC Then I Pay The Bill From My HDFC Account Debit Card To Get Additional ₹750 Cashback.
 
Upvote 0 Downvote
dhiraz said:
I Won't Pay the Bill Now I Pay I Enjoy 45 Days Interest Free Period During The Time The Amount Keep In My IDFC Account Where I Get 4% p.a. Return.
(100000*4/100)/365 is ₹10.96 Per Day. Total Interest I Get in 45 Day is ₹10.96 X45 = ₹493.15
I get ₹493.15 as a Interest from IDFC Then I Pay The Bill From My HDFC Account Debit Card To Get Additional ₹750 Cashback.
Click to expand...
You made the transaction on 15 and paid the bill on cred on 15 itself???
 
Upvote 0 Downvote
HyperBeast said:
What if the receiver doesn't fall in any income bracket??
Click to expand...
See even if your income doesn't attract any tax as per the defined brackets, technically you should always file ITR for the traceability of your income. This way you are disclosing your income to the IT department irrespective of the tax liability to avoid any possible future consequences.
 
Upvote 0 Downvote
@dhiraz The one you're trying to do is something called "manufacturing spend". Now let's check the consequences:
1. This will certainly give you the instant benefit you're looking for but you're basically doing "money laundering". I hope these two words are enough to realise what act it's. As you're not doing a proper rent payment and credit card's money is not your money, so it certainly have no source from your tax paid income.
2. Under Section 194-IB, rent-payments more than 50k per month is taxable, so make sure you're paying tax. In usual time you cut the 5% amount, keep it to yourself to pay tax and pay the rest of the rent to the landlord. So with 1L, the tax liability is there, and as you don't have any proper rent agreement, it'd be a big mess.

The moral of the story is, it's not at all beneficial. As you're in very first phase of it, stop it, don't do it.

Many people are already being served with notice from ITD. So if you get one, make sure you've proper documents and explanation to give
 
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