HDFC Rent Pay Loophole?

I generally pay my rent (more like adding money to my bank account) using Cred and Paytm. They charge around 1.8% inc GST. But last month, I exhausted the monthly limit on Cred. Paytm was taking two days to deposit money. So I used Phonepe to pay rent for the first time. They charge 1.9% to 2% inc GST. But I was surprised to receive reward points on my transaction. I hold a diners club privilege card. I think this loophole can be explored until they fix it, especially post the recent devaluation. I'm attaching an SS for reference.

 

[Gautham]

I generally pay my rent (more like adding money to my bank account) using Cred and Paytm. They charge around 1.8% inc GST. But last month, I exhausted the monthly limit on Cred. Paytm was taking two days to deposit money. So I used Phonepe to pay rent for the first time. They charge 1.9% to 2% inc GST. But I was surprised to receive reward points on my transaction. I hold a diners club privilege card. I think this loophole can be explored until they fix it, especially post the recent devaluation. I'm attaching an SS for reference.

you should have just kept this to yourself 😜

 

[NOOBY]

are you transferring it to your own (other) account or to someone else's ?

 

[shashifed]

you should have just kept this to yourself 😜

I learnt and saved a lot with the community. I guess there's no harm in giving back.

 

[shashifed]

are you transferring it to your own (other) account or to someone else's ?

I transferred to my mom's account.

 

[ltf4ever]

I generally pay my rent (more like adding money to my bank account) using Cred and Paytm. They charge around 1.8% inc GST. But last month, I exhausted the monthly limit on Cred. Paytm was taking two days to deposit money. So I used Phonepe to pay rent for the first time. They charge 1.9% to 2% inc GST. But I was surprised to receive reward points on my transaction. I hold a diners club privilege card. I think this loophole can be explored until they fix it, especially post the recent devaluation. I'm attaching an SS for reference.

how much time did it take for the rent amount to get credited to the bank?

 

[shashifed]

how much time did it take for the rent amount to get credited to the bank?

Incase of Phonepe it was instant. I like both cred and Phonepe for their speed. For some cards (like SBI) Paytm also provides instant settlement. Nobroker and freecharge have the worst experience IMO

 

[Akshay9512]

But why is it a loop whole? Till 31st Dec you will get reward points for rent payment. What the issue here?

 

[Batmanbaba]

But why is it a loop whole? Till 31st Dec you will get reward points for rent payment. What the issue here?

It's post disaster planning...

 

[shashifed]

But why is it a loop whole? Till 31st Dec you will get reward points for rent payment. What the issue here?

Normally HDFC has a monthly reward point cap for rent pay. For Diners club privilege it is 1000 RP per month and it is given separately in the statement. The loophole is phonepe transaction is not being shown as a rental transaction

For rental transaction RP's are posted separately as shown below

 

[gurubhai]

But why is it a loop whole? Till 31st Dec you will get reward points for rent payment. What the issue here?

Rent RPs are provided separately in summary section and not along with the transaction detail.
As per SS, as it is along transaction, this means this payment was not considered as rent payment but a normal payment.

 

[gagan1192]

I generally pay my rent (more like adding money to my bank account) using Cred and Paytm. They charge around 1.8% inc GST. But last month, I exhausted the monthly limit on Cred. Paytm was taking two days to deposit money. So I used Phonepe to pay rent for the first time. They charge 1.9% to 2% inc GST. But I was surprised to receive reward points on my transaction. I hold a diners club privilege card. I think this loophole can be explored until they fix it, especially post the recent devaluation. I'm attaching an SS for reference.

Any tax implications of transfer of money??

 

[amit]

Any tax implications of transfer of money??

Yes, if your yearly spends is more than your annual income.
NO, if receiver getting less than 2.5L per year.

 

[TheMentalist]

Yes, if your yearly spends is more than your annual income.
NO, if receiver getting less than 2.5L per year.

But receiver should file ITR even if less than 2.5L pa showing zero tax liability??

 

[amit]

But receiver should file ITR even if less than 2.5L pa showing zero tax liability??

YES, but folks are rotating with their parents dormat account, may or may not be possible their kids filing that or not, else not an issue if not file at certain times.

 

[shashifed]

If the rent is less than 50k you don't need to give the PAN card details, so I don't think there will be any tax implications,

 

[NewUser]

So I used Phonepe to pay rent for the first time. They charge 1.9% to 2% inc GST. But I was surprised to receive reward points on my transaction.

Same with Freecharge. Have been paying rent via HDFC cc for 2 months now. Last month, I used nobroker+payzapp combo. Received points the succeeding(current) month. This month, I paid two months' rent together(because of the HDFC no points on rent policy from 2023) via Freecharge(1% + GST). Was amused to find points credited against rent payment.

 

[NewUser]

If the rent is less than 50k you don't need to give the PAN card details, so I don't think there will be any tax implications,

Depends upon the platform. For ₹25k, freecharge requires PAN, nobroker doesn't. Then there are some like redgiraffe, which requires the entire family tree DNA for even ₹1k payment.

 

[jhonnytiger]

I generally pay my rent (more like adding money to my bank account) using Cred and Paytm. They charge around 1.8% inc GST. But last month, I exhausted the monthly limit on Cred. Paytm was taking two days to deposit money. So I used Phonepe to pay rent for the first time. They charge 1.9% to 2% inc GST. But I was surprised to receive reward points on my transaction. I hold a diners club privilege card. I think this loophole can be explored until they fix it, especially post the recent devaluation. I'm attaching an SS for reference.

Is it still working in 2023 for rent.

 

[shashifed]

Is it still working in 2023 for rent.

Yes I used it in Jan