How To Pay Income Tax With Credit Card? Step-By-Step Guide

The Income Tax Return filing season is about to conclude and many latecomers might be hurrying to file their ITR,and clear any pending tax liabilities. For those who need to pay additional taxes, many credit card companies are offering discounts and benefits on tax payment with credit cards. Here's a full guide to understand the procedure and its pros and cons.

How To Pay Income Tax With Credit Card?

The Income Tax Department allows Indians to pay credit card payments through its official e-Pay Tax system via authorised payment gateways. People can use the facility to make payments related to advance tax, self-assessment tax, regular tax dues, TDS and GST payments.

However usage of credit cards can be restricted depending on Payment gateway, card network and transaction type, (for example advance tax, self-assessment, etc), according to Savesage.club

Credit Card Availability, Additional Charges

While using credit card for tax payment can save many people from last minute hassle, fines, and late fees.Using credit card for payment can lead to additional charges and specific limitations. Taxpayers must evaluate all the aspects before completing their tax payment via credit cards. The availability of credit card can depend on payment gateway, card network and transaction type.

How To Pay Income Tax With A Credit Card?

-Go to the official Income Tax website.
-Now log-in with extra details like PAN Number, password/OTP,etc.
-Navigate the home page and select the option of e-file.
-Choose the option to make e-Pay tax, new payment, and then select the desired options between advance tax, self assessment tax, TDS, etc.
-Fill the required details.
-Now enter tax details like amount, assessment year, etc.
-Carefully check all the details and complete the payment.
-Save the challan identification number (CIN) and download the receipt.

Credit Card Reward Points On Payment

Most credit cards do not offer discount or offers on tax payment using credit card. Most of the credit cards offer the option to pay the tax, but their reward points or discount programmes doesn't include these payments.

However, some premium and business cards offer real reward on tax payments. Some credit cards also provide 2%-3% of discount with no cap. For example, the HDFC Bizz Black gives around 16.5% on tax payments. Hence, people can earn a decent number of reward points with their tax payment using the right credit card.

Charges on Credit Card Tax Payments

People may end up paying a chunk of the money for processing fee charged by the payment gateway for using credit card for tax payment. These charges range near to 0.85%, as per savesage.club. Some gateways also offer lower or promotional charges but these are not consistent.