Know How To Pay Taxes with Credit Card

While cash payment options are still available, a large number of taxpayers now prefer online payments. Moreover, to further boost the “Digital India” campaign, the government now also allows card-based online tax payments and offers additional benefits on such payments.But are credit card payments allowed as well? Take a look-

No, the IT department currently does not allow taxpayers to use their credit cards for paying taxes. But you can still avail of a host of benefits by paying using net banking or debit card, such as;

• Instant receipt generation
• Waiver of transaction charges at gas agencies, petrol pumps, and while purchasing train tickets
• Additional tax rebate to merchants if 50% of their total transactions are done digitally

• Income tax payments made with credit card provides immediate recognition of remittance as you can file the challan online.
• The challan will serve as a receipt, it includes Corporate Identity Number (CIN) that can be downloaded.
• You can remotely remit taxes on behalf of company or firm from your personal computer.
• Credit card payment of income tax makes you eligible to receive tax rebates.
• Transaction charges on railway tickets, petrol pump and gas agency payments are eliminated.
• 1%-2% of VAT reduction is granted on cashless transactions.

If you want to pay your income tax online , here are the steps you need to follow-

• Login to your account on the NSDL-TIN portal
• Select the applicable challan and enter your PAN/TAN to begin verification
• After verification, you can then start filling the challan details
• Confirm your tax liabilities after completing the form
• Select between ‘Netbanking’ and ‘Debit Card’ option
• Based on your selection, you will be redirected to an online payment portal for completing the payment
• On successful payment, the challan receipt will appear on your screen

While you cannot pay taxes with credit card, the government might make this option available in the future. However, since income tax is accrued on the income earned and credit card is a type of a loan, it will be interesting to see how this will be allowed in the future.So, follow the steps listed above to pay your taxes online and enjoy a host of benefits. Make sure that you file your returns and complete tax payment before the due date to avoid any penalty.Ready to make the most of your money? Start your tax planning journey now!

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.