Get ₹1,00,000 From Credit Card For 45 Days Absolutely Free + ₹500 as Reward

[dhiraz]

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.

 

[dhiraz]

@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 to 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

Thanks For Your Answer Sir!

I did this only for 1st time. Now i will not do these types of transactions in my entire life.

Thanks Again!

 

[hariselio]

money laundering

Are you serious? Is this called money laundering? No way..

i do agree with your other points, but i dont think this can be classified as money laundering.

 

[SubhankarSubhankar is verified member.]

Are you serious? Is this called money laundering? No way..

i do agree with your other points, but i dont think this can be classified as money laundering.

It's what it's.

 

[hariselio]

It is ...

how? explain in details!

 

[Cierdo]

Brilliantly answered by @Subhankar.
There are a lot of videos of these practices circulating over YouTube, and the first thought I get after seeing them is how misleading they are. These people clearly have never filed an ITR in their life, and it shows.
No matter who you're transferring the money to, money always has a trail and unless you are an accountant for a cartel, tax authorities are 10 steps ahead of you, so to say. You're not only putting yourself in a precarious position, but your family members as well (whom you are transferring that money to).
You see, when you transfer rent or any amount from a bank account to another, there is a proper trail showing transactions. If they are balanced, tax authorities wont care less with what you do.
However, when paying with a Credit Card, there is no direct link between the transaction, since 2 bank accounts are not involved. You are paying via your credit card, to a bank account, via an intermediary.
Now, yes, of course you can establish that an intermediary paid that money for you, to the other account. But, if those transactions are scrutinised, you will be in a difficult position as you'll have to furnish Rent Payment slips(Payment slips from intermediaries which will have 'Rent Payment receipt' mentioned on them). And since you paid rent, that rent income, paid to your family members has escaped assessment and they'll get tax notices without any fault of theirs.
That is just one way of how things can play out, but that is just 1 opinion. Authorities know 10 more ways to grab you if you attempt to get sleazy.
I'd not attempt this even if I was getting 10K per month out of it. Not worth it, for any amount.

 

[dhiraz]

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.

Brilliantly answered by @Subhankar.
There are a lot of videos of these practices circulating over YouTube, and the first thought I get after seeing them is how misleading they are. These people clearly have never filed an ITR in their life, and it shows.
No matter who you're transferring the money to, money always has a trail and unless you are an accountant for a cartel, tax authorities are 10 steps ahead of you, so to say. You're not only putting yourself in a precarious position, but your family members as well (whom you are transferring that money to).
You see, when you transfer rent or any amount from a bank account to another, there is a proper trail showing transactions. If they are balanced, tax authorities wont care less with what you do.
However, when paying with a Credit Card, there is no direct link between the transaction, since 2 bank accounts are not involved. You are paying via your credit card, to a bank account, via an intermediary.
Now, yes, of course you can establish that an intermediary paid that money for you, to the other account. But, if those transactions are scrutinised, you will be in a difficult position as you'll have to furnish Rent Payment slips(Payment slips from intermediaries which will have 'Rent Payment receipt' mentioned on them). And since you paid rent, that rent income, paid to your family members has escaped assessment and they'll get tax notices without any fault of theirs.
That is just one way of how things can play out, but that is just 1 opinion. Authorities know 10 more ways to grab you if you attempt to get sleazy.
I'd not attempt this even if I was getting 10K per month out of it. Not worth it, for any amount.

Bahut Jaldi Bataya 🥺

 

[hariselio]

He already explained

If he had proper explanation on how this could be classified as money laundering, you wouldn't have just give me a blind reply saying, "it is"...

Anyways I do know you don't have any useful answers other than your usual single word yes / no type useless replies.

So do not reply/quote any of my posts without any meaningful information.

 

[visvin]

Get a rent agreement made between you and your parents (the house is in their name). Costs like ₹100. Sign up to RedGiraffe, and use the CC to pay rent to your parents. Rent payment to parents is allowed in IT.
This will be income to them, so you can split between mom+dad and try to be below their IT slab or give just to the one parent if they do not have any other sources of income. You can easily trf upto 5L each and then not bearing tax (provided no other source of income).
And When the CC bill comes due, use the money in your parents account to pay it off or Trf the money from their to your account (in IT that is a gift between parents and kids which is not tax) and pay it off.

It is quite simple actually to do this. Just be aware of the IT rules.

 

[Dexter]

@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

It is in no way money laundering. The word "laundering" means washing. Money laundering is only called when black( undisclosed income) is converted to white money.

 

[visvin]

It is in no way money laundering. The word "laundering" means washing. Money laundering is only called when black( undisclosed income) is converted to white money.

One can use this as a tool to launder. E.g. You pay someone rent via bank transfer and they pay it back to you in cash i.e. their black money. Thus 'washing' their black to white. It does at the same time converts your white to black though, which would okay in small amounts. The people involved in laundering requires huge sums to be converted. They make a lot pseudonym and shell cos to do this.

 

[Bob78900]

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

Bhai can you explain this i used my apay card for 15 k and paid the card bill instantly before statement generation what will happen now

 

[hariselio]

i.e. their black money.

exactly, unless someone brings their illegal/black money to the system, this no way belongs to money laundering... just that people needs to be handle it properly wrt tax.

 

[dhiraz]

Please delete this thread 😅

 

[TheTrickySid]

Bhai can you explain this i used my apay card for 15 k and paid the card bill instantly before statement generation what will happen now

Nothing bro it's totally fine in paying bill before statement Generation.
I was telling him not to do because it's a different story altogether.

 

[Bob78900]

Nothing bro it's totally fine in paying bill before statement Generation.
I was telling him not to do because it's a different story altogether.

Ohhh okay thankyou 👍

 

[BankExpertIndia]

Bahut Jaldi Bataya 🥺

View attachment 2969

Nothing Will Happen Just Pay Rs.500 Extra To (IT)

 

[SubhankarSubhankar is verified member.]

It is in no way money laundering. The word "laundering" means washing. Money laundering is only called when black( undisclosed income) is converted to white money.

Can you prove that the rent you paid is actual one? Can you specify the source of income by which you paid the rent? The money chain?
When you can’t, that becomes money laundering. Now you can wrongly show it may be by making documents , which is purely unethical. But if you end up paying rent may be of 8L out of 8L of your filed income, can you justify that? I’m pretty much sure, you got the point now.
I feel it’s my part of duty to spread the awareness, but then following/not following it is an individual’s decision in which I’ve no control of

 

[SubhankarSubhankar is verified member.]

I can certainly see lot of manufacture spenders here already. If you’re doing it and doing tax evasion, it’s good for you. For for the good for all, please do go around and suggest the same to others. Most of the people may not be the “experts” you’re in terms of tax evasion and justifying unethical deeds. It may hurt your sentiments and I’m not sorry at all to do it for a greater good.
FOR THE PEOPLE: Please avoid these kind of things for your own good. Always remember, you’re a PART OF THE SYSTEM, not the SYSTEM ITSELF. System can out-smart you if it wants. Use your credit card responsibly. It’s one of the finest financial tool, until you try to game it in wrong way.

 

[mokshranka]

I can certainly see lot of manufacture spenders here already. If you’re doing it and doing tax evasion, it’s good for you. For for the good for all, please do go around and suggest the same to others. Most of the people may not be the “experts” you’re in terms of tax evasion and justifying unethical deeds. It may hurt your sentiments and I’m not sorry at all to do it for a greater good.
FOR THE PEOPLE: Please avoid these kind of things for your own good. Always remember, you’re a PART OF THE SYSTEM, not the SYSTEM ITSELF. System can out-smart you if it wants. Use your credit card responsibly. It’s one of the finest financial tool, until you try to game it in wrong way.

What if I have done rent payment using my credit card to my own account itself and also the amount was under 50k so I did not have to give my pan details. Please tell me if I will be in trouble, is while filling ITR I have shown the rent payment fees as bank charges for transfering money from credit card to wallet.

 

[gurbina]

If you insist on doing it despite being warned, suit yourself but this thread should be closed.

Whether it's tax fraud, tax evasion or money laundering, what you're doing is illegal.

Under the Indian Income Tax Act, it is a criminal offense to furnish false information or documents with the intent to evade tax. If caught, you could be charged with TAX FRAUD, which is punishable by imprisonment and fines. Additionally, the tax authorities may disallow the tax exemptions claimed on the basis of the fake invoices, and you may be required to pay back any taxes that were improperly claimed.

These are tax exemptions/deductions to help you with housing whether you are a landlord or tenant. That's why you can't claim HRA and house loan deductions if they're both in the same city.

IT will scrutinize the transactions specially if they're close relatives, it doesn't not matter whether you have rent agreement receipts, transaction slips or a rent agreement. It is not unusual for them to ask for additional documents to verify that the property exists and that you live there, specially once you cross the 1L annual threshold where a PAN must be furnished.
For over 1L annually not furnishing a PAN, giving an incorrect or fake PAN number is about the easiest and fastest way to get an IT notice.

It takes a simple Google search to find out that and more.

You're FORGING legal documents to avail tax exemption/deductions. That in itself is illegal. It is as bad as furnishing a fake PAN card or Aadhaar.

I found this online for faking rent receipts for HRA which isn't far away from this.

"Rent receipts can surely be the best way to save on additional tax on your income but that doesn’t mean that you start taking advantage of it. Fraudulent rent receipts might put you behind bars the way same they save tax for you. So be careful and don’t use the luxury against yourself and be a responsible citizen.”

Here are different types of punishments, for creating fake rent receipts:

• If the income is under-reported, the Income Tax Department can levy a penalty of up to 200% of the tax applicable on the income misreported.
• On under-reporting of income, a 50% penalty can be levied.
• On data mismatch, the IT Department may send a notice seeking valid documents, initiate scrutiny, or cancel the HRA exemption.

If you're willfully found to be doing this, they will come after you for tax fraud when forging documents.

This is a prime example of it, they have all the evidence and actions that show willful and intentional tax fraud. @visvin

Get a rent agreement made between you and your parents (the house is in their name). Costs like ₹100. Sign up to RedGiraffe, and use the CC to pay rent to your parents. Rent payment to parents is allowed in IT. This will be income to them, so you can split between mom+dad and try to be below their IT slab or give just to the one parent if they do not have any other sources of income. You can easily trf upto 5L each and then not bearing tax (provided no other source of income). And When the CC bill comes due, use the money in your parents account to pay it off or Trf the money from their to your account (in IT that is a gift between parents and kids which is not tax) and pay it off. It is quite simple actually to do this. Just be aware of the IT rules.

You'd think it might okay? It is NOT.

Some people do these and more too, in the best case scenario where they receive a tax notice and they don't provide supporting docs instead of providing FORGED documents for any tax claims they've made inthe financial year they'll just cancel the tax exemption/deduction and hand you over a fine. But on the later option of submitting FORGED documents, good luck with that! Get tax lawyer instead of CA if you already submitted an ITR like that.
They can even revise previous ITR filed or missed and ask for supporting proof of that. If you've been doing it for years, I'd stop it NOW and pray that they never find out because once they do they will LOOK INTO PREVIOUS YEARS and it will be a slaughter. It can literally ruin your life, if not cost you an eye and a leg to fix.

Nowadays it's very easy to identify FORGED documents. Get a CA to help you figure it out if you have already claimed exemptions. You're still on time to submit an updated/revised ITR.