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MAX CREDIT CARD BILL FOR A STUDENT?

Cc_learmer

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Hii...I am currently a student...But I have 2 icici credit card(rupay and platinum) and icici apay...I use these to order some things for my friends...I got the cards in Feb 2024...Till now I have paid total bill of around 4 lakhs...I haven't filled any kind of ITR before...So will be there be any problem for me
 
Hii...I am currently a student...But I have 2 icici credit card(rupay and platinum) and icici apay...I use these to order some things for my friends...I got the cards in Feb 2024...Till now I have paid total bill of around 4 lakhs...I haven't filled any kind of ITR before...So will be there be any problem for me
Don't cross 10 lakh on one bank account in Financial year better keep at 8 lakh max. .
 
Don't cross 10 lakh on one bank account in Financial year better keep at 8 lakh max. .
Thanks for the reply...I don't think it will cross 8lakh..max 5 lakh possible... I have another query... You said 10 lakh per annum...so Is it 10 lakh bill paid after bill generation or just 10 lakh total payment in credit card dues...as I generally don't generate bill more than 20k each month..
 
Thanks for the reply...I don't think it will cross 8lakh..max 5 lakh possible... I have another query... You said 10 lakh per annum...so Is it 10 lakh bill paid after bill generation or just 10 lakh total payment in credit card dues...as I generally don't generate bill more than 20k each month..
10 lakh per bank so let's say you have an icici and hdfc card. to be safe, you can spend upto 9.9L on both cards but stop at 9L at most. At 10L the banks report this to the IT department who then compares it to your ITR, if your ITR is NULL or lower than this reported amount, then you are in trouble. This is per financial year i.e, March end each year.
 
Thanks for the reply...I don't think it will cross 8lakh..max 5 lakh possible... I have another query... You said 10 lakh per annum...so Is it 10 lakh bill paid after bill generation or just 10 lakh total payment in credit card dues...as I generally don't generate bill more than 20k each month..
It's 10 lakh Repayment irrespective of Bill generation ( ie you pay before bill generation or some other way too)
And 1 lakh in cash payment to cc is also reported but this is just a standard process but if ITD / GOVT / BANK found your transactions fishy they can open amy amount or card transactions but generally not done for low value but totally possible as everything is digital - have linked transaction status end to end - Pan linked..... So please be cautious and maintain record of transactions and better to ask your friends to pay directly to cc rather than taking cash /acc credit
 
It's 10 lakh Repayment irrespective of Bill generation ( ie you pay before bill generation or some other way too)
And 1 lakh in cash payment to cc is also reported but this is just a standard process but if ITD / GOVT / BANK found your transactions fishy they can open amy amount or card transactions but generally not done for low value but totally possible as everything is digital - have linked transaction status end to end - Pan linked..... So please be cautious and maintain record of transactions and better to ask your friends to pay directly to cc rather than taking cash /acc credit
Thanks for the reply...I don't file any itr... thinking of filling itr next year...As I am a student I don't have any income...Just a monthly scholarship...So which Itr should I fill and how can I show my credit card transaction as a business income?
 
Your credit card transactions ar enot buisness income. An income is when you get salary for work or profit from business. If you use CC Payment and can prove you did it for third party and took money, any income generated from this money is taxable not whole amount.

Say:

You pay for a friend CC i.e Rs.1 Lakh. Took 1 Lakh from him and put in FD for 30-55 days before it deducted for payment. The interest income generated on either by keeping in Savings/FD is taxable not 1L. Also below 2.5L income or profit you don't need to file. Taking money from someone and putting it in bank account doesn't make a madatory for you to show it as income. But if you ever asked question you should be ready to prove that you took money from friend. Avoid Cash as friend can always change their colors when they see IT Depatment or polce coming or they even blame you for telling them to give you money and you make payment on their behalf.

I urge you to keep these things for family CC like I do.
 
Your credit card transactions ar enot buisness income. An income is when you get salary for work or profit from business. If you use CC Payment and can prove you did it for third party and took money, any income generated from this money is taxable not whole amount.

Say:

You pay for a friend CC i.e Rs.1 Lakh. Took 1 Lakh from him and put in FD for 30-55 days before it deducted for payment. The interest income generated on either by keeping in Savings/FD is taxable not 1L. Also below 2.5L income or profit you don't need to file. Taking money from someone and putting it in bank account doesn't make a madatory for you to show it as income. But if you ever asked question you should be ready to prove that you took money from friend. Avoid Cash as friend can always change their colors when they see IT Depatment or polce coming or they even blame you for telling them to give you money and you make payment on their behalf.

I urge you to keep these things for family CC like I do.
Good one & probably this should Op.listen
But he saw horrific videos last night on YouTube & is worried about taxes 😄

Even if he had to file 0 income tax it it's ITR 4
 
@
I also have some stgc...Some intraday losses(very small)...So...itr 4 is ok for me? I am just afraid of tax notice... because I am paying 4-5 lakh cc bill..but my income is zero... that's why...and all the money (4-5 lakh) is deposited in my account as cash...So filling itr and showing them as presumptive income is a good idea?
 
@

I also have some stgc...Some intraday losses(very small)...So...itr 4 is ok for me? I am just afraid of tax notice... because I am paying 4-5 lakh cc bill..but my income is zero... that's why...and all the money (4-5 lakh) is deposited in my account as cash...So filling itr and showing them as presumptive income is a good idea?
Itr 4 for most of people
 
@Vasuki I wrongly quoted your post. Was quoting @Cc_learmer post.

ITR 4? No he can't because his business isn't the registered one and also don't need audit under section 44AA or 44AB. People often think CC as business activity which it is not. He can easily fill ITR one and show this as Income from other sources and that also the income or cashback generated from such activities not the receivables.

Here most people aren't aware of what applies to them or what not. Better have a CA or study yourself like I did over years. Start learning the IT Act and Corporate Act 1-2 pages a day. I know we won't become CA but atleast it helps us many a times.
 
@

I also have some stgc...Some intraday losses(very small)...So...itr 4 is ok for me? I am just afraid of tax notice... because I am paying 4-5 lakh cc bill..but my income is zero... that's why...and all the money (4-5 lakh) is deposited in my account as cash...So filling itr and showing them as presumptive income is a good idea?
Yes if Stock Market income/losses are concerned then ITR 4 for you. Also you will never get tax notice for 4-5 lakh cc bills or even 20L investments in stock market. Tax is on income/profit not investments. You can always tell you borrowed money from family to invest in markets.
 
Yes if Stock Market income/losses are concerned then ITR 4 for you. Also you will never get tax notice for 4-5 lakh cc bills or even 20L investments in stock market. Tax is on income/profit not investments. You can always tell you borrowed money from family to invest in markets.
Thanks for the suggestions
 
First of all, why are banks so eager to issue Credit cards to students, who don't have any income source!
Wonder what happened to the internal Risk engine of banks, cant they see this anomaly, the drastic difference between income declared and expenses?
 
First of all, why are banks so eager to issue Credit cards to students, who don't have any income source!
Wonder what happened to the internal Risk engine of banks, cant they see this anomaly, the drastic difference between income declared and expenses?
This is a fundamentally market & business solution to Underpenetration of credit acess at large and financial literacy at bottom end

What I mean by market & business solution is at last count around August 2024 there were oy 60 Crore individual credit profile which is around more than half of all above population above 18 which is technically have some economic earning for their livelihood. Again of which around 28crore are only active post Covid ie they have atleast one entry of credit in last 4 years out of which truly active is around 20 crore these are industry analysis nos and aprox 5 - 6 cr have Credit cards (although active cc nos are 10cr + but due to multiple cards)
Now that 6 crore even at higher end is less than 10 % of bureau score prifiles Or less than 5 % of all adult population has acess to pre approved credit access . and banks are going to miss the opportunity to loop in next generation in their credit earning mix and even wealth if they don't have their relationship in long run. So banks are aggressive in this credit cycle to catch them young

Lot of formalized economic activity is being routed through these young via banking system due to nature of their earnings to education to shift from physical to financial assets and that's the reason for them to have lot of data to underwrite them on credit and remember the pace of workforce addition is atleast 2cr /yr (although net addition in formal economy is still a low percentage of that) so the financial institutions are scrambling to attract and maintain relationship with these which could boost their bottom line in long run

Then comes the growth and economic development is usually sustained by both borrowing from future ( credit) & Putting excess of past ( saving/investment) and any economic cycle needs one to have both to achieve economic development at scale and this is the phase of that transformational change aided by lot of tech - public infra - economic activity etc


Every economy & group of people in this present scenario a nation state has gone through economic development by way of leverage as one of main pillars and this is why it's happening.... And yes these are bubbles or unintended consequences of over bull cycle but essential to attract market forces to aid in growth... the cycle will chug and there would be downturn and there's a case for non income earning students should not be given credit at principal but at present it's not the case
 
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