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Warning for prepaid card users (like tide) and credit card users

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Deal Cadet
Sachin9811

Please beware of spending high amount on business prepaid cards (like tide) if you are not showing any business income in your tax returns. There are good chances of income tax notice (depending on usage). It will be very difficult to explain your activities in case you get notice. This is a business expense card not a personal use credit card. While registering you give your pan card and agree you will be doing business expense so very easy to track income/ return by income tax dept.
Above 10Lakhs use, there is high chances of a notice but even with 3-4 lakhs usage you may get notice.

Similarly, you may get notice if you use your non-commercial credit cards more than what you can explain by your disclosed income. 

Recently, seeing many students etc asking questions on how to respond to income tax notice, so want to write this for some of you who are not aware of this (I know majority of you will be aware).

Few of the many posts I saw recently:https://www.desidime.com/discussions/got-income...

https://www.desidime.com/discussions/rotation-o...

Disclaimer
We are not SEBI/IRDA registered. The information provided herein is for education purposes only. We will not be responsible for any of your profit/loss with this channel's suggestions. Consult your financial advisor before making any decisions.
Top Comments
Finance Mentor Finance Mentor
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I keep away from shady things... that's all I can say, was aware of tide since inception but didn't register...

Critic Critic
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Don't worry, @abhishek012 will personally come & fight on your behalf by..........<insert Kaun Banega Crorepati suspense tune>......posting comment. smile

Finance Ninja Finance Ninja
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All Prepaid cards and Gift cards are corporate cards or Platinum corporate cards.

Payzapp virtual visa card is also corporate card,

ICICI Pockets virtual visa card is also corporate card,

Bank gift cards are also corporate cards.

Tide RuPay card is also Platinum corporate cards.

There is no difference between all Prepaid cards and Gift cards.

Note - RuPay currently dnt issue any Business prepaid cards.

So, What's Tide Prepaid card, is it business card or not ?

100% no. This is just a marketing gimmick to grab business customers.

I will give you few example -

Hope! you heard about Junio RuPay card (teenagers card)

Now if i will tell you Warning for Junio RuPay teenagers card users. Please beware of spending high amount on your teenager Junio card. If your teenage child don't have any income. There are good chances of income tax notice (depending on usage). It will be very difficult to explain your teenage child activities in case he/she get notice. Blah blah blah

But do you guys think so ?

No. Why ?

Because this is human psychology. This is how our brain works.

Teenager prepaid card - our brain will think - oh its safe card. Teenager/child means "koi chota mota chiz hai."

Payzapp virtual corporate wallet prepaid card - our brain will think - oh wallet card i am 100% safe. Thank god pura 5 lakhs wallet ka use karunga. Mai safe hu kyunki yeh wallet card hai.

Now Tide Wallet business corporate prepaid card - our brain will think - Business ??????????? OMG! OMG! OMG! business card. isse durr rahena hai. Income tax notice aa jayega. Desidime pe sab ko bata deta hu logo ko yeh business card hai, Kya pata UPSC exam me bhi aa jaye.  😀😀

I give you one more example, this is real life example not a joke -

Coupl app RuPay wallet prepaid card - many users ask me Coupl app eligible for single person ? because some users think its only for couples. One guy ask me bhai yeh coupl app single logo k liye bhi hai kya ? i said yes. He again ask me sure na bhai ? i replied haan bhai. he said - Bhadiya tab toh thik hai. Another guy told me he didnt signup coupl app yet because he thik coupl app only for couples.

See, all prepaid wallet cards are same. Startup entrepreneurs just find a new new ways to grab customers.

Some wallet cards promote as -

India's first numberless card,

India's first virtual only card,

Coupl card for couples,

Teenagers card,

parents & child cards,

business card,

influencer card,

shopping card,

women's card,

aur pata nahi kya kya hai yaar.

Falana card, Dimkana card etc.

All are PPI issue wallet cards yaar. Bas marketing gimmick hai aur kuch certain area ko capture karne aur investor ko ek unique ideas dekha kar investment lene k liye karte hai.

Last thing, All wallet prepaid card usages - pros and cons are same. Doesn't matter its promote as normal wallet prepaid card or business prepaid card.

Flame Flame
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also @abhishek012 in my opinion they will report these transactions to IT deptt because it is not about prepaid card but business account. In US/EU they report this, check here

https://www.tide.co/support/help/fatca/what-inf... Screenshot2023-12-11-11-43-59-03e4424258c8b8649f6e67d283a50a2cbc  
PS: No reporting, My opinion changed after  searching more about it. You are free to do your own research.

The Business account is just the name of the product through which they offer prepaid card to business, Unlike other wallets their target customers here are businesses. This is the only difference here as compared to other prepaid cards like junio, etc otherwise they are just any other company who is offering Transcorp's PPI instrument.



In US/UK they report as per the local rules but in India we don't have any rules for PPI transactions reporting yet except for cash transactions which are not allowed by companies themselves and yearly restrictions on loading limits are already in place. So, in my opinion no reporting and @abhishek012 is right.

70 Comments  |  
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Deal Newbie Deal Newbie
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Does Omni card also come under the business category?

Critic Critic
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From the website itself:
Meet India's 1st Corporate Card with UPI Payments
Rupay powered prepaid cards with an intuitive Mobile App, UPI, NCMC & offline + online Card Payments. Empower your business with endless possibilities.
View 1 more reply
Helpful Helpful
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nice said

Finance Mentor Finance Mentor
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I keep away from shady things... that's all I can say, was aware of tide since inception but didn't register...

Generous Generous
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Even I didn't register for tide

But I m using my cc extensively (not crossing 10l)

Deal Cadet Deal Cadet
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As long as you can explain spends by your income, it's fine even if more than 10L

Critic Critic
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Don't worry, @abhishek012 will personally come & fight on your behalf by..........<insert Kaun Banega Crorepati suspense tune>......posting comment. smile

Deal Cadet Deal Cadet
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Haha. He promotes tide and many other tricks and tips which are helpful to many. 

Its upto us to be sure to understand the risks.

View 13 more replies
Helpful Helpful
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Tide-plus-Chaunka-diya-na-bechari-ko-meme

Deal Newbie Deal Newbie
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Fampay also issues a fam card but it is a upi based wallet and itself gives a limit of 600000 in a year so is it also included in this ?

Flame Flame
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also @abhishek012 in my opinion they will report these transactions to IT deptt because it is not about prepaid card but business account. In US/EU they report this, check here

https://www.tide.co/support/help/fatca/what-inf... Screenshot2023-12-11-11-43-59-03e4424258c8b8649f6e67d283a50a2cbc  
PS: No reporting, My opinion changed after  searching more about it. You are free to do your own research.

The Business account is just the name of the product through which they offer prepaid card to business, Unlike other wallets their target customers here are businesses. This is the only difference here as compared to other prepaid cards like junio, etc otherwise they are just any other company who is offering Transcorp's PPI instrument.



In US/UK they report as per the local rules but in India we don't have any rules for PPI transactions reporting yet except for cash transactions which are not allowed by companies themselves and yearly restrictions on loading limits are already in place. So, in my opinion no reporting and @abhishek012 is right.

Finance Ninja Finance Ninja
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US/EU markets are different.

Tide India does not have a license in India nor it is regulated by the RBI.

Tide has no control over the money in our wallet nor Tide know any details of Tide wallet card transactions.

Then How Tide card work ?

Answer - same like any other 3rd party wallets work.

Tide card is powered by Transcorp International Ltd. Transcorp have RBI's PPI issuer license.

RBI Restricts Access To Card Transaction Data. In these directions, it asked co-branding partners to keep their hands off card transaction data. The RBI has, this time, gone straight for the fintech jugular – access to data.

Without the data, the FinTech firms cannot do customisations or cross-sell products.

So, without any data, Tide cannot report these transactions to IT deptt.

last thing, If you want to understand better then what's Tide or Tide card ? Tide is nothing in India. On paper, Tide does not exist in India. Tide dnt have license in India, Tide is just a virtual company and nothing else.

We are using Tide because we trust on Transcorp International Ltd and RBI.

You can launch your own wallet partnership with Transcorp International Ltd.

And you can sell it however you want.

You can call your Card is Teenager card, Female card, Business card, Women card, Numberless card, Corporate card, Couples card, Transgender Card, Old-age Card, youngsters Card etc.

But you don't get any card transaction data or control your customers wallet money. All these controlled by Transcorp International Ltd.

If any transaction failed or no refund or any fraud happen. You just receive the complaint and forward to the Transcorp International Ltd.

Transcorp International Ltd will handle everything A2Z.

View 7 more replies
Community Angel Community Angel
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Jisko tide use na karna ho wo surf excell use kar sakte hai 

Tech Guru Tech Guru
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Rin/Nirma is crying in the corner
Benevolent Benevolent
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Does the 10L yearly limit for reporting applies to wallets like Paytm, Amazon pay, slice wallet etc as well? What about debit cards?

So far I have seen only credit card spends being reported.

Flame Flame
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There is already a monthly and yearly limit in wallets and only online transfers are possible which are already being tracked through bank accounts. so I guess they might not be reported

View 13 more replies
Helpful Helpful
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enabling rupay kind of CCs to link with UPI, after our CC spends increases, sending notices, what kind of stuff it is by our governments??

Critic Critic
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You won't get notice if your ITR justifies your spends.
Helpful Helpful
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Who can open a Tide Business Account?

The applicant must satisfy the following conditions to become a Tide member :

Their age should be more than 18 years.

Their Aadhaar should be linked to a mobile number.

They must be an Indian citizen.

They must have a valid PAN card.

They must use an Android-based mobile phone.

Commentator Commentator
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Matter is not what you expense matter where from you get this money income tax find that chain

Deal Cadet Deal Cadet
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Your are not making anything clear . for me.


Business/corporate card means I can buy items for my office, employees only? So its for businessmen like mukesh ambani? And only such people are allowed to gift Rs. 100-2000 limit gift credit cards on diwali and birthdays?

And normal/personal card means buy items for home use?

Avant Garde Avant Garde
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etna kya maata fodi hai sidha sidha bol dene ka i roatated the money and did earn some commission benefits etc etc karlo income total 5 lakh ban jaaye toh de do tax warna so jaaho katam.... joy🤣 joy🤣

Deal Newbie Deal Newbie
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   Amrit kaal mein bachke khelna , nahi yoh tumhare acche din kab ayenge pata bhi nahi chalega

Generous Generous
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Matlab 1 2 crore ghuma Dene se koi fark nahi padta.. waise kidhar justify karna hota hai itr me? Agar Maine 1 lakh kisi app se nikala fir fd Kiya 1 month baad nikal kar pay kar Diya.. isko kaise dikhana hota hai xd

Is business konkya naam du grin

Community Angel Community Angel
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This useless thread is perfect example of "अधजल गगरी छलकत जाए" OP is preaching like a CA even he himself don't know anything about the issue, if you use certain prepaid card it will be business transaction without any business 🤦 , payment instrument ko hi business bata diya joy

Deal Cadet Deal Cadet
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OP is a CA !
View 4 more replies
Deal Newbie Deal Newbie
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tide loot chl rhi h kya? 

Deal Cadet Deal Cadet
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It's like tandoori mayo isn't made in tandoor it's the unique name given to the mayo same for tide or any company using a prepaid wallet 

Community Angel Community Angel
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Screenshot20231212-1712442

Generous Generous
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there was some app offering card for women only .. i was like not even golgappa thela wala does that

Deal Subedar Deal Subedar
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Kisi bhi "K'ampaign me apni KYC na becho. Waise bhi SBI Wale bank bulayenge har mahine kyc ke liye.

SBI Wale apne customer ko aise bhul jate hain jaise Chacha dusro ki biwi dekhkar apni wali bhul jate hain.

Deal Newbie Deal Newbie
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 tide to bank transfer free  mein jisko chaiye dm me

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