Suggest ways to make grocery payment of around 50 lakh per month

[bhavik886151]

That’s why I want to switch to business card with better return.

Regarding income tax notice, all my transactions are properly accounted for and all reward points earned are subjected to tax as per income tax. So even if I receive notice then it won’t have any affect

after axis and ICICI close my personal card
now i do all these transaction on business credit card
i have now ICICI GOLD business and IDFC first Business already applied for the HDFC biz power
try with AMEX corporate card but they required 5 cr turnover of the company so not eligible for it for now

if any one have any other business credit card suggestion please share

 

[bhavik886151]

W

Would not the bank close the cc for clocking that much on a personal cc.

previously bank not doing/aware it as i used my flipkart and ICICI credit card for almost 2 years with utilization of 2x to 3x of the limit every month but as bank know that money rotator used personal credit card and extracting rewards with out any actual spend they are strict with the high spenders and many card closed

 

[Vasuki]

i utilized 2 to 3 times of the limit of the card like for flipkart axis they gave me limit of 1.8 lakh i used 1.5 lakh in 15 days then repay it again used 1 to 1.5 lakh and then pay 70 % of last utilization so every time at the time of bill generation i remain to pay 30-40k

Were you doing this every month ?

I did it once a month ( last month )
3 times the limit

Point is you did on Flipkart card that's raises the scrutiny more

Flipkart card misuse leads to ban
Hence I never took Flipkart card .

 

[Vasuki]

after axis and ICICI close my personal card
now i do all these transaction on business credit card
i have now ICICI GOLD business and IDFC first Business already applied for the HDFC biz power
try with AMEX corporate card but they required 5 cr turnover of the company so not eligible for it for now

if any one have any other business credit card suggestion please share

Op is using indusind pinnacle

 

[bhavik886151]

Op is using indusind pinnacle

but it is personal credit card

 

[techt]

Op is using indusind pinnacle

Have to see if he gets into a pickle.

 

[Vasuki]

Have to see if he gets into a pickle.

Fd based hard to get banned that too 40l fd 🤣

 

[techt]

Fd based hard to get banned that too 40l fd 🤣

Didn't know that 🙄. BTW it's interest rate?

 

[sidp]

no there is no tax evasion at all if you record all your purchase and sales invoices he is just doing arbitrage and there is nothing wrong in it he can justify it but it is tough

I am not saying it is tax evasion. (May be my wording was wrong). But as the cc bill on personal pan is much higher than reported itr, it can be used by itd to harass. As they can show possible tax evasion is more than 50L, they can reopen it till 10year from the end of assessment year.(this is what I meant.) Even small amount like undisclosed interest or some side income can amount to a big number after fine & interest.

As personal cc/account was used in business purpose, it gives an excuse for itd that you haven't used business as a separate entity which increases exposure to legal trouble. If someone does it regularly, limited liability doesn't hold. Technically someone going after your business can also go after your personal asset.

I also know people who use personal cc for business. Sooner or later they do get notice. They got off without any fine, but we need to consider the stress and additional cost of ca/lawyer associated with itd notice. Op being a CA himself, these additional cost won't be applicable for him. But most people using personal cc aren't ca/lawyer.

 

[Vasuki]

Didn't know that 🙄. BTW it's interest rate?

7.5
8.0+ for sr

 

[Tay]

7.5
8.0+ for sr

I dont know what is the arbitrage return he is getting.

But if its not much then the FD rate + rewards + arbitrage - deductions < ROI by investing the FD amount elsewhere

 

[Akash Topder]

Use business/corporate cards for you business spends. NOT personal cards.

 

[bhavik886151]

it

I dont know what is the arbitrage return he is getting.

But if its not much then the FD rate + rewards < ROI by investing the FD amount elsewhere

ROI must be higher

also credit card is about getting credit from banks at the zero interest rate for the 40- 50 days also he get interest on the FD so it is like taking Loan against Asset at zero interest rates

 

[kushhh]

Op should get Tide Rupay Card , fav card of ludodom 😛

 

[Vasuki]

I dont know what is the arbitrage return he is getting.

But if its not much then the FD rate + rewards + arbitrage - deductions < ROI by investing the FD amount elsewhere

IndusInd have good intrest rate .
7.5- 7.5+ for normal ppl

 

[Tay]

it

ROI must be higher

also credit card is about getting credit from banks at the zero interest rate for the 40- 50 days also he get interest on the FD so it is like taking Loan against Asset at zero interest rates

IndusInd have good intrest rate .
7.5- 7.5+ for normal ppl

It's highly doubtful that the ROI might be high given that arbitrage typically involves exploiting small differences in prices or rates.

Furthermore, obtaining credit at zero interest is only advantageous when used to acquire an appreciating asset, which isn't the case here.

In reality, the notion of zero interest on the credit is flawed since it overlooks the opportunity cost of maintaining the amount in a Fixed Deposit. This opportunity cost includes forgoing potentially higher returns elsewhere, as well as sacrificing liquidity, which is limited with an FD and often incurring penal interest if withdrawn prematurely.

 

[Vasuki]

It's highly doubtful that the ROI might be high given that arbitrage typically involves exploiting small differences in prices or rates.

Furthermore, obtaining credit at zero interest is only advantageous when used to acquire an appreciating asset, which isn't the case here.

In reality, the notion of zero interest on the credit is flawed since it overlooks the opportunity cost of maintaining the amount in a Fixed Deposit. This opportunity cost includes forgoing potentially higher returns elsewhere, as well as sacrificing liquidity, which is limited with an FD and often incurring penal interest if withdrawn prematurely.

Ofc fd cc doesn't make sense but if he getting
4-5 k cashback pm isn't bad .
Since it's retail purchase.
Profit comes from selling & discount by distributor.

 

[Tay]

Ofc fd cc doesn't make sense but if he getting
4-5 k cashback pm isn't bad .
Since it's retail purchase.
Profit comes from selling & discount by distributor.

True but still 5k pm ie 60,000 per annum is still a 1.3% return (on 45 L FD) and if you add the FD ROI + Rewards - Deductions + (hassles of keeping books clean and the pressure of IT scrutiny in future) still that is way less than the other options of investing the 45 L + without any hassles + lower taxation (10% / 15%)

But still I may be wrong of not considering some major leverage which the OP is aware about and I am not

 

[Vasuki]

True but still 5k pm ie 60,000 per annum is still a 1.3% return (on 45 L FD) and if you add the FD ROI + Rewards - Deductions + (hassles of keeping books clean and the pressure of IT scrutiny in future) still that is way less than the other options of investing the 45 L + without any hassles + lower taxation (10% / 15%)

But still I may be wrong of not considering some major leverage which the OP is aware about and I am not

If he would have played smart he would have leveraged
So many premium card for his personal use
And got Few business card to some big spends still would have made 5-10% return.

 

[Divas_Garg]

after axis and ICICI close my personal card
now i do all these transaction on business credit card
i have now ICICI GOLD business and IDFC first Business already applied for the HDFC biz power
try with AMEX corporate card but they required 5 cr turnover of the company so not eligible for it for now

if any one have any other business credit card suggestion please share

I have applied for amex corporate credit card. They are saying limit will be around 30 lakh without any collateral