What happens if I send money to friend as rent?

[CardShard]

I have used NoBroker rent pay before. Assuming reward > markup, is there a downside? Any income tax implication on "friend"?

 

[Sevendar@01]

I have used NoBroker rent pay before. Assuming reward > markup, is there a downside? Any income tax implication on "friend"?

seedhi baat no bakwaas - karte sab hai batata koi nhi

 

[techhdate]

your friend will receive the money

 

[techhdate]

income tax implications depends on the amount..if its a one time thing its fine..if its every month and the total adds upto to lakhs over the year then IT should be filed

 

[pratikjain4]

Yes, if you are providing someone's PAN details while paying rent, it might reflect as earnings in the receiver's IT calculation, which is not what you would want.. There were some reports on twitter about this, some people saw this income auto-filled while filing IT returns.

 

[CardShard]

Yes, if you are providing someone's PAN details while paying rent, it might reflect as earnings in the receiver's IT calculation, which is not what you would want.. There were some reports on twitter about this, some people saw this income auto-filled while filing IT returns.

Exactly the kind of answer I was looking for. PAN is not mandatory on NoBroker. Is there some other way for IT Dept to flag these transactions? Also, who reports to IT Dept in such cases? NoBroker or the Bank? How does this work if you're paying rent to yourself?

seedhi baat no bakwaas - karte sab hai batata koi nhi

Haha, I am trying to justify Magnus for myself, but my spends are nowhere close to 1L per month.

 

[techhdate]

any transaction above 50000 needs PAN .

 

[NewUser]

Yes, if you are providing someone's PAN details while paying rent, it might reflect as earnings in the receiver's IT calculation, which is not what you would want.. There were some reports on twitter about this, some people saw this income auto-filled while filing IT returns.

What if a wrong PAN is provided[other details being correct]? Anyone tried this yet?

 

[rp0703]

Exactly the kind of answer I was looking for. PAN is not mandatory on NoBroker. Is there some other way for IT Dept to flag these transactions? Also, who reports to IT Dept in such cases? NoBroker or the Bank? How does this work if you're paying rent to yourself?

seedhi baat no bakwaas - karte sab hai batata koi nhi

Haha, I am trying to justify Magnus for myself, but my spends are nowhere close to 1L per month.

Banks report to the Income Tax Department.

What amount you are planning to send to friend via rent payment?

Keep this in mind, credit card payments of Rs. 10 Lakhs and above in a year, are reported to IT department.

 

[NewUser]

Banks report to the Income Tax Department.

What amount you are planning to send to friend via rent payment?

Keep this in mind, credit card payments of Rs. 10 Lakhs and above in a year, are reported to IT department.

I plan to send 1L every month for 3 months(to make my card FYF), then never again. I hope it won't be a major flag. My "friend" is a housewife, so unemployed. Thoughts?

 

[rp0703]

I plan to send 1L every month for 3 months(to make my card FYF), then never again. I hope it won't be a major flag. My "friend" is a housewife, so unemployed. Thoughts?

No wrong Flag or anything but her bank might ask about these high value transactions. Because some banks ask that. If these types of transactions happen in her account normally then it's okay.

 

[thanix]

I plan to send 1L every month for 3 months(to make my card FYF), then never again. I hope it won't be a major flag. My "friend" is a housewife, so unemployed. Thoughts?

As per IT act, any rent payment above 50,000 INR to an individual needs TDS to be deducted by the rent payer and deposited against the landlord Pan.

 

[NewUser]

As per IT act, any rent payment above 50,000 INR to an individual needs TDS to be deducted by the rent payer and deposited against the landlord Pan.

Thanks. I'll make a total of 49,999 INR then for 6 months

 

[pratikjain4]

PAN is not mandatory on NoBroker.

I think it is necessary for rent amount > 8333 ( or, 1 L / year ). To answer the other question asked, if you provide wrong PAN, the person having that PAN might get the shock of his life when filing IT returns. People used to do this earlier, lets say till last year, but things are getting tougher now to use this "rent" hack.

 

[TheMentalist]

I plan to send 1L every month for 3 months(to make my card FYF), then never again. I hope it won't be a major flag. My "friend" is a housewife, so unemployed. Thoughts?

so much trouble for FYF.. how much is the joining fees of card?
Better to use Amazon account(s).. can spend 30k pm per full kyc acc without any charges

 

[NewUser]

so much trouble for FYF.. how much is the joining fees of card?
Better to use Amazon account(s).. can spend 30k pm per full kyc acc without any charges

It's Infinia.

For FYF, I need to spend 3 lakhs in 90 days.
Sorry, didn't get the 30k per month part of Amazon. Please explain

 

[Slayer]

It's Infinia.

For FYF, I need to spend 3 lakhs in 90 days.
Sorry, didn't get the 30k per month part of Amazon. Please explain

So spending 3L will make it LTF?

 

[NewUser]

So spending 3L will make it LTF?

FYF[First Year Free] not LTF

 

[TheMentalist]

It's Infinia.

For FYF, I need to spend 3 lakhs in 90 days.
Sorry, didn't get the 30k per month part of Amazon. Please explain

You need to have Amazon wallet UPI enabled for that.. check the threads in this forum for trick to do that

 

[ULTRA-MAGNUS]

Yes, if you are providing someone's PAN details while paying rent, it might reflect as earnings in the receiver's IT calculation, which is not what you would want.. There were some reports on twitter about this, some people saw this income auto-filled while filing IT returns.

I hold DCB.
In my case, I was planning to transfer rent 60k rent to my wife such that it will be 49.5k from redgirraffe and 10.5k from nobroker - on monthly basis after preparing a genuine rental agreement.
I do not want this transfer to get added to her income.

Now after reading the above comment from @pratikjain4 I am having second thoughts.
Is there a way to highlight that the 60k transaction is nothing but a peer to peer payment as she would return that amount back every month to my account using bank transfer?