How do I pay my credit card bill with another credit card?

Banks that issue credit cards in India do not let a cardholder use one credit card to pay the bill of another. A cardholder cannot use a credit card directly to pay another's bill. However, there are other ways in which one can pay a credit card bill using another credit card. Listed below are two ways in which a cardholder can do that:

• Balance Transfer: Using the balance transfer feature, a credit cardholder can transfer the entire or a part of the debt that has accumulated on another credit card to a different credit card. This feature helps the cardholder to keep a track on their balance and payments. This is also a wise way to save on the interest that one needs to pay.
• Cash Withdrawal: The cardholder can withdraw cash using a credit card that has ample amount of unused credit limit and use the cash to pay off the debt on the credit card that has accumulated debt.

What is the billing cycle for the HDFC credit card?

Most banks in the country decide the billing date for the credit cards that they issue to their customers. Also, banks mention the billing cycle details in the monthly e-statement that they issue. The RBI has a set of rules and regulations in place that the banks need to follow. The bank asks the customer to pay their billing within this set billing cycle. Generally, the billing cycle of an HDFC credit card is a minimum of 20 days and a maximum of 50 days.

How To Make The Best Use Of Supplementary Or Add-on Credit Cards

It is a truth universally acknowledged that credit cards unlock a world of financial freedom for the cardholders. With constant evolution of the financial world, more and more options are opening up in terms of products and services. So now, one can easily share this financial freedom with their family members, thanks to the introduction of supplementary cards. Supplementary or add-on cards, as they are popularly known, give the primary cardholders an option to share the benefits of the credit card. Supplementary cards can be issued for the primary cardholder's family members including their spouse, children or parents. Almost all the major banks in India issue supplementary credit cards. However, there is a limited number of supplementary cards that is issued by the banks. Also, a supplementary cardholder should be at least 18 years or above to be able to use the card.

Listed Below Are Some Of The Important Properties Of A Supplementary Credit Card:

• 
  Gathering reward points: The reward point system of a credit card lets the cardholder earn bonus or points each time they swipe the card. After gathering these reward points, the cardholder can claim exciting products from the bank's catalogue. It works in the same manner with supplementary or add-on credit cards. The number of reward points that the supplementary cardholder earns for subsequent swipes is the same as on the primary card.
  
• Benefits for the supplementary cardholders: Contrary to popular belief, supplementary cardholders get to enjoy the same set of benefits that are provided to a primary cardholder. From air miles to cashback offers to fuel surcharge, supplementary cardholders receive the same benefits that the primary cardholders enjoy. Most banks even allow the supplementary cardholders to earn airport lounge visits (depending on the credit limit, expenditure made on the card and maintenance of the card).
  
• Cash withdrawal facility on supplementary cards: Supplementary cardholders can withdraw cash from an ATM using their credit card any time of the day. However, the limit of cash withdrawal will be the same as that of the original credit card. In some cases, the banks set a lesser cash withdrawal limit.
  
• Monitoring usage: The primary cardholder can monitor the usage of the supplementary cards. In case the primary cardholder has given supplementary cards to family members who are dependent on them like their children, they can keep a check on their spending habits. In fact, if the primary cardholder wishes to set a separate credit limit on the supplementary card, they can do that as well.
  
• Credit limit – In most cases, the credit limit on a supplementary card is the same as that of the primary credit card. However, at times, some banks might allow a lesser credit limit to a supplementary card (in comparison to the primary credit card). For example, if a cardholder has been issued five supplementary cards and their primary credit limit is Rs.2 lakh, the sub-limit for their supplementary card should be distributed equally amongst all the add-on cards. So, the cardholders will be entitled to a limit of Rs.40,000 on each of their add-on cards. Similar sub-limits will imply on their cash withdrawal also.
  
• Fee: Most banks in the country do not levy any charges to issue a supplementary card. In fact, at times, banks issue supplementary cards as a complementary service. However, there is a limit to the number of free supplementary cards that a primary cardholder can apply for. A few banks charge a certain amount of money to issue more than four supplementary cards. Also, most banks waive the annual fee of the supplementary cards.
  
• Statements of supplementary cards: Every bank that issues a supplementary card generates a consolidated statement of account that includes the expenditure made on the primary card as well. This not only makes tracking easy, it also helps in keeping a check on the expenditure made on each and every card. These statements can be obtained in hard copy as well as via email. Most banks do not charge their customers for availing this service.
  
• Payment of balance on the supplementary card: While expenditure made on supplementary cards are individual, payment of the outstanding amount must be done through the primary card. Cardholders, both primary and supplementary, are expected to pay the consolidated outstanding balance together. The due date of the same is also the same. In case of delay in payment or failure to make a payment, the primary cardholder will be held responsible.
  

While supplementary cards ensure the financial freedom of the family members of the primary cardholders, it is also important to be meticulous when it comes to their maintenance. Any negligence in terms of payment of the outstanding amount can affect the credit score of the primary cardholder. Hence, while getting supplementary cards for the family, the primary cardholder should make sure that the add-on cards are maintained with as much care as the parent card itself.  

How to link Aadhar Card with PAN Card

How to Activate Your Deactivated Pan Card 2017 Online

Procedure to Reactivate Your PAN

1. Once, PAN is de-activated by department, income tax e-filing login of assessee also gets blocked

2. To Activate your PAN again do following:

3. Write an Application to your PAN AO Code(in duplicate) for activation of your PAN. Following documents need to be attached to application:

1. Indemnity Bond in favour of the Income Tax Deptt.
2. Copy of PAN on which the PAN holder is regularly filing the Income Tax Return.
3. Copy of last 3 years Income Tax Returns filed on the PAN de-activated.

4. Reactivation of PAN is 10-15 days process for Income Tax Department

5. If you have received any notice/intimation from ITD for which an online response needs to be filed but your e-filing login is blocked then you should file that physically to your AO and as your PAN gets activated file that in online mode too.

6. There can be a scenario where you haven’t filed earlier returns then in that case add another declaration in the Indemnity bond explaining the scanerio.

Format of Letter To AO

The Accessing Officer of Income Tax,                                                            Dated:*************

Ward No. ****

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Civic Centre

New Delhi-110002

Sub: Request for Activating PAN Card no. ********** in the Name of Mr. ***************

Respected Sir/Madam,

Through this Application, I bring to your notice that PAN CARD No ********** was deactivated and the current status on the Income Tax Department website is also Deactivated as message “Your PAN card is deactivated by department” is being displayed while login. Due to this I am unable to file the Income Tax Return for the Assessment Year 2017-2018.

In this regard I request to you to please look into matter and activate my PAN card so as to enable me for Income Tax Return filling for the AY 2017-2018. The activation will also help me in migration to GST.

For the Purpose of activation of PAN Card, I am enclosing the following documents

1. Photo copy of my PAN CARD
2. Indemnity Bond and
3. Copies of last 3 years ITR filed as enclosure to this application are not available since my Income for last 3 Assessment Year was below taxable limit. In lieu of these documents I have added another declaration in the Indemnity Bond enclosed in this letter vide point A.

Kindly do the needful at the earliest and help me in being compliant with other laws also.

Details in respect of the PAN mentioned in Subject

1. Name in PAN Card: ***************
2. Father’s Name : *************
3. Date of Birth: *************
4. Residential Address : **********************

Yours faithfully,

***************

Format of Indemnity Bond

(Include Point 7 if You do not have last 3 year ITR Copies)

I,*******************, R/o *****************, do hereby solemnly affirm and declare as under:

1. My PAN is: **********
2. I am regularly assessedin your ward/jurisdiction with PAN: **********.
3. I have only one PAN i.e********** which isused for last many years for the purpose of Income Tax Procedures and Proceedings, if any.
4. I do not have any other PAN with me neither I applied for any other PAN, if any other PAN is allotted in your records, kindly deactivate the same and activate the PAN for which I have submitted the Application.
5. I undertake to indemnify the income Tax Department for any loss that may be caused in the future.
6. Kindly activate my PAN: ****************.
7. I also declare that my income for earlier years for which I didn’t filed my return was below taxable limit. Therefore, I do not have copies of Income Tax Return for last 3 years as aksed by the Income Tax Department.

That the above statements are true to the best of my knowledge and belief.

(Deponent)

PAN card to be given instantly

In a bid to back Prime Minister Narendra Modi's endeavor to promote digitization in India, the Central Board of Direct Taxes is making efforts to issue the Permanent Account Number (PAN) quicker with the help of Aadhaar's e-KYC facility. This facility helps the user to authenticate details using the biometric identification option.

Pan Card 

A report quoting an authority from the PAN department has announced that this step will minimize the number of steps included in the process of getting a PAN card. It will also reduce the time taken from three weeks to a few minutes. However, though the applicant will receive the PAN number instantly, the office will deliver the card after a while.

After this, the Income Tax Department is contemplating the alternative of creating a smartphone app that will help taxpayers to pay their taxes with ease. This app will not only help them keep a track of their investments and returns but will also help them in applying for a PAN card online.

Recently, the government announced that it will issue PAN cards that have been newly designed. These cards will feature added security that will turn them tamper-proof. The content of these cards will be available in English and Hindi.

Why Liquid Funds are a Good Idea

Why Liquid Funds are a Good Idea

With the demonetisation drive that took the country by storm, liquidity has seen a tremendous increase and while the drive did stir up the pot, it managed to bring a lot of the currency back into the banks. The demonetized currency has almost entirely (close to 95%) been deposited back into the accounts and the overall financial ecosystem is currently seeing a great degree of liquidity.

This feature has consequences that reach farther than the lines at the ATM. Banks are now flush with cash which has caused them to reduce interest rates. Borrowers with car loans, personal loan or home loans can enjoy this brief respite but investors’ better start looking at other options rather than traditional fixed deposits. Lowered interest rates also imply that the bank pays lower rates for deposit amounts thus reducing the returns.

The reduction in rates are meant to deter people from further depositing cash into the system. Investors can still opt for time tested methods of deposits that are extremely safe but give poor yields. Other options investors could consider are Liquid Funds.

Features of Liquid Funds

Liquid funds are money market funds that fall under the debt fund category. These funds give better returns than bank deposits and consist of investments such as short-term treasury bills, commercial papers, term deposits and certificate of deposits. The maturity period of assets invested in have an average period of 91 days

Liquid funds are offered by a wide range of fund houses. Entry or Exit loads are not imposed on these funds. Unlike equity funds, the management fees levied on liquid funds are lower as well ranging between 0.5% and 1%. Even the investment amounts are very affordable for those just starting off. Investments can be made through lump sums or through SIPs used in a manner similar to mutual funds. Lump sums invested in liquid funds can be as low as Rs.5,000.

Tax benefits

This is the realm in which liquid funds are far superior. Bank deposits usually offer lower interest rates but come with no risk. The interest rates on deposits can range from 4% to 7% and when you take tax deductions into account, the returns are further diminished. For those investors falling under the 30% tax bracket and holding a fixed deposit that offers an interest rate of 6.5% per annum, the interest rates received after tax deduction will wilt down to 4.55%

Liquid funds on an average have been earning more than bank deposits with interest rates averaging out at 8% to 9% per annum. This trend has been consistent over the past few years and even with a slump in interest rates of liquid funds as was witnessed last year, the funds still earned a rate of 7.5% which is comparatively higher than rates offered on bank deposits.

Another tax benefit of liquid funds is that the tax paid on annual interest rates does not occur annually as is the case with bank deposits. The tax is paid only when the fund is liquidated. Tax paid on returns is of two types. One is short-term capital gain tax which is levied on redemption of debt funds in less than 3 years or less than one year for equities. The second is long-term capital gain tax which is levied on redemptions made on debt funds after a period of three years.

New to Credit Cards? Here’s All You Need to Know

New to Credit Cards? Here’s All You Need to Know

So you’ve decided to take the plunge and get yourself a credit card. Unwrapping that shiny little piece of plastic opens you to a world of benefits and privileges. However, there are certain rules to live by if you want to avoid falling into a debt trap that could see your credit worthiness spiral downwards and make you a financial persona non grata.

A credit card gives you the freedom to spend money that is not debited from your bank account up to a certain sum for a fixed period of time. Thus, credit cards make credit available to you as and when you need it. The amount is to be repaid based on your billing cycle to avoid penalties and fines. While the initial rush of swiping your card everywhere you go might seem the way to go, here are some points to keep in mind so card debt does not loom on your financial horizon:

• Credit Card Charges:

A credit card usually comes with a whole list of Credit card charges, beginning with the joining fee. Additional charges include the annual fee, statement fees, service tax, surcharge, late payment fee, card replacement fee, etc. Exceeding your credit limit on your card will attract a charge as well. Delayed payment of your dues will also result in a penalty, which will be levied on your subsequent bill.

Not paying off the total amount due on your credit card will attract interest charges, which could be anywhere from 3%-4% a month. Doesn’t seem like much, you might scoff, but when annualised, the rate amounts to a whopping 48% on the higher end of the interest spectrum. This amount is also levied on each successive bill that has a balance carried over, which will inflate your overall amount due by a significant amount.

• Picking a Credit Card that Suits Your Needs:

Picking a credit card that suits your needs is important, as this could be the deal breaker between you enjoying the perks of a card and drowning in a sea of debt. If you’re looking for a card merely to help you keep up with payments and aren’t looking for any perks, a no-frills card is the best bet for you. Looking for discounts each time you swipe at a store? A shopping credit card that offers cashback or in-store rewards is the one for you. Frequent travellers can benefit from a travel card, which converts points into air miles redeemable on flights or hotel stays.

• Dates to Remember:

With your new credit card comes a host of important dates that you have to keep in mind, such as your bill payment date, the date the bill is generated etc. The date your bill is generated on marks the end of your billing cycle and lists your outstanding dues for that period only. The bill payment date is the date by which you are expected to pay off the outstanding amount or the minimum amount due to avoid late payment charges.

• Credit Card Application Status
  Different banks have different ways of credit card application status but most of them have an online facility, where you can apply for a credit card online as well. The process then involves furnishing all required documents and information to the bank. Once, the application process is complete, you must track your application status to check how far long has it been processed by the bank so that you can follow up with the bank accordingly. Usually, it takes up to three weeks to receive your credit card from most banks. Credit card may take a month from the date of registration, as it undergoes processing request, followed by dispatch to your home address.
  

• Minimum Due versus Full Payment:

Credit cards offer you the chance to pay off your debt in instalments, either before the due date or after it. It is always advisable to pay off your outstanding amount by the due date to keep your credit score and repayment history healthy. However, if you are unable to pay off the whole amount, you are required to pay a minimum amount, usually a percentage of your total outstanding amount.

Getting away with paying just the minimum amount brings with it a set of charges though, since you will be paying interest on the balance amount. You will also lose out on the interest-free period, meaning every successive transaction will incur interest from the day the purchase is charged to your card.

As seen above, there are quite a few pitfalls associated with credit cards that, if you aren’t careful to avoid, could leave you in debt for a considerable amount of time. Being prompt with payments, avoiding maxing out your credit card and being prudent with what you charge to your card will ensure that you reap the many benefits that come with credit cards.