As per a leading business dailies report, soon the Centre may allow other modes of payments such as credit card, payment wallets and UPI for paying off one's income tax liability. Currently net banking and debit card transactions are only allowed for discharging one's tax liability.
The facility to pay off income tax via credit cards is available to some of the individuals in some countries and the feature will only provide enhanced facility and simplify payment. "Given the journey of digitalisation of tax administration in India, extending the option of using credit card for online payment of taxes, without additional charges, would definitely enhance the taxpayer experience and convenience', said Chadha partner at EY India.
In 2017, Canada started with a new mode of tax payment that is referred as personalized quick response codes that are scanned while making payment. And this worked well for individuals who did not had internet connectivity or were away from places where financial entities are located.
Also, the move will aid in bringing in more compliance and provide more hassle free way of payment of taxes. Further as per the report if such payment is acceptable on a wide array of modes, the move will be more cost-effective.