Credit Card Spend Rotation one to another one

[Pk shaw]

Hi guys
I have 7 Rupay Credit cards and i rotate the money from one card to another one but now including all i used 15 Lakh till now, My income is 7 Lakh p.a in this situation can I get the income tax notice and one more thing is rotating money from one card to another one is illegal ?

 

[abhimarda]

Hi guys
I have 7 Rupay Credit cards and i rotate the money from one card to another one but now including all i used 15 Lakh till now, My income is 7 Lakh p.a in this situation can I get the income tax notice and one more thing is rotating money from one card to another one is illegal ?

What do you exactly mean by rotating? Balance transfer? And till the time total amount paid to credit cards of one bank in a financial year does not exceed 10 lakhs banks do not report it.

As I am not clear about rotating, cannot say what is meant. But if they are not genuine spends, then the banks do not allow it and may block your card once they find it.

Meanwhile, if your income does not support such spends, do not create issues for yourself by doing these kind of things.

 

[zacobite]

Hi guys
I have 7 Rupay Credit cards and i rotate the money from one card to another one but now including all i used 15 Lakh till now, My income is 7 Lakh p.a in this situation can I get the income tax notice and one more thing is rotating money from one card to another one is illegal ?

10L PAYMENT on one bank will lead to it getting reported.. Doesn't always mean that you will get a notice.. However the banks may block your card soon for commercial use / suspicious activity

 

[amitvicky]

Hi guys
I have 7 Rupay Credit cards and i rotate the money from one card to another one but now including all i used 15 Lakh till now, My income is 7 Lakh p.a in this situation can I get the income tax notice and one more thing is rotating money from one card to another one is illegal ?

How do you rotate?
Could you please guide on what's needed and steps?

 

[sudoabhi]

one more thing is rotating money from one card to another one is illegal

Banks don't allow it. There is an option of Balance Transfer though.
How do you rotate money?

 

[zacobite]

How do you rotate?
Could you please guide on what's needed and steps?

Rotation of money is tricky / and can backfire badly if bank or ITD decide to question!! cards can be blocked / account can be blocked / IT notice can / will come for sure if income and rotation mismatch!! Be Ready for all eventualities..

 

[zacobite]

Banks don't allow it. There is an option of Balance Transfer though.
How do you rotate money?

Rotation of money is tricky / and can backfire badly if bank or ITD decide to question!! cards can be blocked / account can be blocked / IT notice can / will come for sure if income and rotation mismatch!! Be Ready for all eventualities..

 

[Anil98]

Though i do not recomend rotation of credit in any case. But a IT notice of such case with proper documentation is not a big deal.

 

[zacobite]

Though i do not recomend rotation of credit in any case. But a IT notice of such case with proper documentation is not a big deal.

not really.. they will. ask for the income to be declared.. and if not then other questions....If rotation is small then not worth it.. if rotation is huge then profit has to be declared!

 

[Pk shaw]

10L PAYMENT on one bank will lead to it getting reported.. Doesn't always mean that you will get a notice.. However the banks may block your card soon for commercial use / suspicious activity

How much should i spend in a financial year from my all cards so that I don't receive any ITD notice.

 

[Pk shaw]

What do you exactly mean by rotating? Balance transfer? And till the time total amount paid to credit cards of one bank in a financial year does not exceed 10 lakhs banks do not report it.

As I am not clear about rotating, cannot say what is meant. But if they are not genuine spends, then the banks do not allow it and may block your card once they find it.

Meanwhile, if your income does not support such spends, do not create issues for yourself by doing these kind of things.

Look i have 7 cards and i pay to a current account through a QR code then i use those money in stock market and than pay bills directly from that current account like this i use cards but those cards are from different banks and that current account is also not in my name.
So how much I can spend from all those cards in a financial year.
Can i spend more than 10 lakh because i have different banks card?

 

[zacobite]

Look i have 7 cards and i pay to a current account through a QR code then i use those money in stock market and than pay bills directly from that current account like this i use cards but those cards are from different banks and that current account is also not in my name.
So how much I can spend from all those cards in a financial year.
Can i spend more than 10 lakh because i have different banks card?

repeatedly paying same QR for large amounts also is flagged by many banks quoting commercial use.. be careful.. many many such instances have come up... quick question.. you do this to get funds for trading or for rewards points or cashbacks... if using for funds then it is a zero sum game as you will pay and withdraw every month so dont gain anything rolling ( except for month 1 where u used the credit period) !!..If for points / cashback.. hw much per month.. is it worth it

 

[Shre]

I remember reading somewhere RBI had warned against rotation. I think they must have made it illegal through some circular

 

[zacobite]

Look i have 7 cards and i pay to a current account through a QR code then i use those money in stock market and than pay bills directly from that current account like this i use cards but those cards are from different banks and that current account is also not in my name.
So how much I can spend from all those cards in a financial year.
Can i spend more than 10 lakh because i have different banks card?

IT rule is clear.. More than 10 Lakhs PAYMENT ( Not spend) per bank ( not per card) is reported.. Notice is not guaranteed.. However if you file IT returns accurately then ITD will be no issues... BUT the banks may / will block your card account if they catch in their risk algorithm

 

[zacobite]

I remember reading somewhere RBI had warned against rotation. I think they must have made it illegal through some circular

Yes it is illegal but RBI doesn't enforce anything at a customer level... It will be the bank..

 

[Pk shaw]

repeatedly paying same QR for large amounts also is flagged by many banks quoting commercial use.. be careful.. many many such instances have come up... quick question.. you do this to get funds for trading or for rewards points or cashbacks... if using for funds then it is a zero sum game as you will pay and withdraw every month so dont gain anything rolling ( except for month 1 where u used the credit period) !!..If for points / cashback.. hw much per month.. is it worth it

I use it for Swing Trading specially and i made minimum 5% to Max 18% every month.
Suppose i have 7 cards so i use 3 cards for Trading and 4 cards for bill payment of those 3 cards.
If you want to know it in details than please drop your no i will call you.

And please tell me if you have any different idea for this.

 

[Pk shaw]

IT rule is clear.. More than 10 Lakhs PAYMENT ( Not spend) per bank ( not per card) is reported.. Notice is not guaranteed.. However if you file IT returns accurately then ITD will be no issues... BUT the banks may / will block your card account if they catch in their risk algorithm

Per bank bill payment is not higher than 10 lakhs because i have multiple bank's card but overall bill payment is higher than 10 lakhs, is it any problem with this?
And yes i file ITR because I'm a salaried person.

 

[zacobite]

I use it for Swing Trading specially and i made minimum 5% to Max 18% every month.
Suppose i have 7 cards so i use 3 cards for Trading and 4 cards for bill payment of those 3 cards.
If you want to know it in details than please drop your no i will call you.

And please tell me if you have any different idea for this.

then no benefit.. as after month 1.. its withdrawal and payment in the same month so will roll off / nullify...eg.. You have to pay back 1 L bill from last month and again rotate 1 L this month.. So you arw technically just delaying the payment.. at some point will become due.. unless the profits are being used to settle old dues.. Be careful bro.. will spiral out of control v v soon and u won't even realize the size of the hole u have dug for your self..BTW.. I understand the model.. Not my cup of tea..

 

[Pk shaw]

then no benefit.. as after month 1.. its withdrawal and payment in the same month so will roll off / nullify...eg.. You have to pay back 1 L bill from last month and again rotate 1 L this month.. So you arw technically just delaying the payment.. at some point will become due.. unless the profits are being used to settle old dues.. Be careful bro.. will spiral out of control v v soon and u won't even realize the size of the hole u have dug for your self..BTW.. I understand the model.. Not my cup of tea

I do it for interest free loan but if required i can handle this much amount to pay at last.

 

[zacobite]

Its a circle.. U are not benefitting after month 1..do the math.. Eg. Month 1 Withdrawn 2 L / made 18% in stocks / end of month paid 2L and withdraw 2L.again...So after Month 1.. no additional benefit.. Just Month 1 one time.. 2L 1 month interest free.. and will always remain due..Anyway.. good luck.. stay safe