Choosing CC for tax payments

[Sriim]

I have Regalia Gold, Tata neu infinity, Apay ICICI, BOB Energie, Airtel Axis and IndusInd legend, none of which rewards tax payments.

I'm thinking of getting a new credit card for Tax payments. Approx 50-60k tax payment to be made.

My research gave the following options

1. AU LIT - 2% CB rider (-199) + 10X online RP rider (-299, - RP redemption 99) + PG charges - should give approx 1.7%
2. IDFC wealth - 6RP/100 for 30k, 10RP/100 for remaining 20K ~ 3800 RPs - RP redemption - PG charges ~ 0.78%
3. AU Xcite Ace - 3% CB till 25000 - PG charges ~ 0.62%
4. SC smart - 2% CB - 588(renewal fee) - PG charges ~ borderline negative returns
5. AU Xcite Ultra - 1RP/100 for govt spends ~ 500 RPs ( + 500 if done in 1-5th days of month) - RP redemption - PG charges ~ negative returns
6. AU Altura plus - 1RP/100 for govt spends ~ 500 RPs ( + 500 for 20k milestone) - RP redemption - PG charges ~ negative returns

Au lit seems to be the runway winner. But with recent devaluation removing utility, govt spends could be next.

Any cards i missed? Any suggestions?


Thanks in advance

 

[SamPtnk]

Hdfc business debit card
5% CB on all tax payment

 

[Sriim]

Hdfc business debit card
5% CB on all tax payment

I didn't know that.

But I already have Millenia DC which gives me 4800/year in CC bill payments which is more than the 2500 i stand to earn as 5% CB for my 50k tax payment.

In the same note, any other DC giving such returns

 

[codenerd]

Can you please elaborate on AU Xcite ACE?
3. AU Xcite Ace - 3% CB till 25000 - PG charges ~ 0.62%

So 3%-0.62%= 2.38%
Is that right?

 

[Sriim]

Can you please elaborate on AU Xcite ACE?
3. AU Xcite Ace - 3% CB till 25000 - PG charges ~ 0.62%

So 3%-0.62%= 2.38%
Is that right?

PG charges min 0.88% .
0.88% of 50000 is 440.
3% of 25000 is 750
750-440 = 310
So net reward rate is 310/50000*100 = 0.68%

 

[Sriim]

@D₹V @shutapdiya @S S V @NShah some guidance please?

 

[techt]

PG charges are 0.8% on kotak mahindra pg. So with GST@18% it will be 0.8*1.1.8 = 0.944 . ~1%
We need to consider the paying amount too. I am taking an example of 1.5L payment.

1. AU LIT - 2% CB rider (-199) + 10X online RP rider (-299, - RP redemption 99) + PG charges - should give approx 1.7%
AU LIT is good if you can utilize the boosters to max. Boosters are active for 90 days and you need to split the payments to 3 months, to hit the monthly milestones.
2% has a threshold of 1K. 10x is effectively 2%. So you split and pay a month 50K.

What you pay on tax portal = 50,000*1/100 = 500/-
What you must enable on AU Lit with GST averaged to month = (199 +299)*1.18/3 = 196/-
Redemption = lets not account it. you do it once in an year.
So for 50K what you paid ? = PG + Booster fee of AU = 500 +196 = 696/-

What you get on AU = 1K (milestone) + 50000*2/100 = 2000

Effective cashback for a month = (2000 -696)*100/50000 = 2.6%

You may have to look at 5% CB too depending on your payment amount.

YES .. AU Lit is more complex than Income tax calculation

2. IDFC wealth
for online it's CB is 1.5% till 30K and 2.5% later.

Taking PG of 1% into account. Effective CB is 0.5% till 30K and 1.5% later.

 

[Sriim]

PG charges are 0.8% on kotak mahindra pg. So with GST@18% it will be 0.8*1.1.8 = 0.944 . ~1%
We need to consider the paying amount too. I am taking an example of 1.5L payment.

This year i have tax liability of 50k only.

1. AU LIT - 2% CB rider (-199) + 10X online RP rider (-299, - RP redemption 99) + PG charges - should give approx 1.7%
AU LIT is good if you can utilize the boosters to max. Boosters are active for 90 days and you need to split the payments to 3 months, to hit the monthly milestones.
2% has a threshold of 1K. 10x is effectively 2%. So you split and pay a month 50K.

What you pay on tax portal = 50,000*1/100 = 500/-
What you must enable on AU Lit with GST averaged to month = (199 +299)*1.18/3 = 196/-
Redemption = lets not account it. you do it once in an year.

I'm planning to use the card only for tax payments. So I'm okay with spending 3 months rider for just single payment and the bear the redemption charges.

So adding 118 for redemption and 392 for the other 2 months.

Reward rate still comes to more than 1.5% which is excellent i think.

 

[Sriim]

On another note, I tried the swipe up platform and was offered Xcite Ace credit card. Any tips on how to get LIT card?

 

[techt]

@Sriim
If you choose 5% booster and make the payments in 3 separate installments , you get 1500 cumulative milestone benefit . So for an extra 118rs you will be getting 500 extra.

 

[shutapdiya]

@D₹V @shutapdiya @S S V @NShah some guidance please?

Take AU LIT and IDFC wealth (if you can get based on other CC limit) both

 

[SamPtnk]

I didn't know that.

But I already have Millenia DC which gives me 4800/year in CC bill payments which is more than the 2500 i stand to earn as 5% CB for my 50k tax payment.

In the same note, any other DC giving such returns

Not any that I am aware of

 

[techt]

@Sriim
Au lit gone..

Did AU silently devalued most important feature in AU LIT Card?

Did AU silently devalued most important feature in AU LIT Card? 5% & 2% milestone benefit was for 90 days early Now in the website, I am seeing it is to be renewed every 30 days Is this for real or some typo in their website? Can any other users confirm? Or am I confused? IF this is true...

www.technofino.in

 

[Sriim]

@Sriim
Au lit gone..

Did AU silently devalued most important feature in AU LIT Card?

Did AU silently devalued most important feature in AU LIT Card? 5% & 2% milestone benefit was for 90 days early Now in the website, I am seeing it is to be renewed every 30 days Is this for real or some typo in their website? Can any other users confirm? Or am I confused? IF this is true...

www.technofino.in

😂😂😂. Devaluation Max

 

[techt]

😂😂😂. Devaluation Max

For your use case of one time it doesnt matter.
As You don't want to use it for next 2 months.

 

[Sriim]

For your use case of one time it doesnt matter.
As You don't want to use it for next 2 months.

Yes. But I didn't get AU LIT. Seems all my address are in non serviceable areas😅. Wasn't offered IDFC wealth as well.

Banking on FYF SC smart this year.

 

[DocFixIt]

Hdfc business debit card
5% CB on all tax payment

Comes with current account right ?

 

[SamPtnk]

Comes with current account right ?

yep redeem like you do

 

[thedator]

yep redeem like you do

Can Savings Account holders get this card?

 

[techt]

Can Savings Account holders get this card?

Nope ... all biz cards are for biz people. You need current account.