RBI Cracking Down on P2P Credit Card Transactions (Rent)

[rogerthat]

So the rent payment party too will soon come to an end. RBI is tightening the screws on the credit card business and especially on VISA/MasterCard from all ends.

RBI cracking down on P2P credit card transactions

RBI cracking down on P2P credit card transactions

www.thehindubusinessline.com

 

[Calm Radiance]

Unfortunately, in the end only genuine people gets affected!

They must allow rent however with strict documentation and likewise in other categories too where people have taken undue advantage and made manufactured spends.

RBI/ Banks/ Institution must ask for evident document so that people who cheat gets their cards cancelled and other punishment but genuine people are always protected.

 

[sxchzy]

rbi should even allow emis to be paid via ccs

 

[catcat]

Hmm, I hope I am able to complete 20L spends on my SBI AI card before this becomes operational. Need another 2 months.

I pay my mother rent to get tax deductions, and also reward points, and is declared in her income. Will continue to pay her rent it even once this comes to an end, but if we can't pay via cc and get points, c'est la vie.

 

[Deleted member 9785]

Moye Moye ho gaya

RBI cracking down on P2P credit card transactions

RBI cracking down on P2P credit card transactions

www.thehindubusinessline.com

 

[Lobogris]

Hmm, I hope I am able to complete 20L spends on my SBI AI card before this becomes operational. Need another 2 months.

I pay my mother rent to get tax deductions, and also reward points, and is declared in her income. Will continue to pay her rent it even once this comes to an end, but if we can't pay via cc and get points, c'est la vie.

That itself is tax fraud.

 

[catcat]

That itself is tax fraud.

Really? I wonder why the IT department and my CA don't think so.
But thank you for your remarks.

 

[Lobogris]

Really? I wonder why the IT department and my CA don't think so.
But thank you for your remarks.

Because you are hiding your trail well. That doesn't mean it's not fraud. Any fake transaction done for tax benefit is fraud.

 

[Vasuki]

So the rent payment party too will soon come to an end. RBI is tightening the screws on the credit card business and especially on VISA/MasterCard from all ends.

RBI cracking down on P2P credit card transactions

RBI cracking down on P2P credit card transactions

www.thehindubusinessline.com

Everyday there is a loophole .. one way or the other.. smart ppl makes the way .

 

[sxchzy]

Because you are hiding your trail well. That doesn't mean it's not fraud. Any fake transaction done for tax benefit is fraud.

it isnt fake
paying rent to your parents and claiming tax deductions are allowed by ITD

 

[Lobogris]

it isnt fake
paying rent to your parents and claiming tax deductions are allowed by ITD

If it is real. Not a fake transaction to just get tax deductions.

 

[deep@vie]

If it is real. Not a fake transaction to just get tax deductions.

That's how the world works,in business people chores of fake expenses,here you're worried about few thousands.

 

[catcat]

Using a loophole is not fraud. For example, paying rent to one's spouse is not allowed. If the house were owned by my father, and had paying rent to my mother, that would be a fraud. Over invoicing and under invoicing is fraud.In this case, even if the IT department scrutinizes, I expect to prevail.
And not sure where I "hid my trail" - mom's pan number is clearly mentioned. Even TDS is done, and taxes are paid.

By this logic, those who use HUF provisions would be fraudsters as well.

But thanks for derailing the thread.

 

[deep@vie]

Using a loophole is not fraud. For example, paying rent to one's spouse is not allowed. If the house were owned by my father, and had paying rent to my mother, that would be a fraud. Over invoicing and under invoicing is fraud.In this case, even if the IT department scrutinizes, I expect to prevail.
And not sure where I "hid my trail" - mom's pan number is clearly mentioned. Even TDS is done, and taxes are paid.

By this logic, those who use HUF provisions would be fraudsters as well.

But thanks for derailing the thread.

Buddy @catcat don't take it personally

 

[sxchzy]

If it is real. Not a fake transaction to just get tax deductions.

well if you stay with your parents you can pay them rent

 

[ak93]

well if you stay with your parents you can pay them rent

This is real and valid as long as your parents declare the same income in ITR. I have done it during covid.

 

[deep@vie]

This is real and valid as long as your parents declare the same income in ITR. I have done it during covid.

Even there's no need to declare if annual rented amount is under 1lac.

 

[sxchzy]

This is real and valid as long as your parents declare the same income in ITR. I have done it during covid.

yes
no reason for your parents not to disclose it
otherwise you wont be able to get tax deduction

 

[Abhishek012]

Yeh to hona he tha, aaj nahi to kal.

Such transactions violate not just the credit card framework but is also beyond the scope of the current licensing of these entities.

“Credit card transactions are only meant to be between merchants and customers (P2M). If funds are being routed through an escrow account operated by a third party, it is bypassing the regulations and will not be allowed,”.

 

[dealminer]

well if you stay with your parents you can pay them rent

Noted.
This will be followed 🫡