Income tax payment using credit cards

[thanix]

Does anyone know whether Income tax payment (Self assessment or Advance tax) can be made through credit cards?

Income tax website lists it is available as option under PG https://www.incometax.gov.in/iec/foportal/help/make-payment-online-faq but last time when I paid, it is accepting only Netbanking or Debit cards only?

Has anyone has experience paying it through credit cards?

 

[mgforce]

Credit Cards are not accepted

 

[iamnhm]

Check this video out, I think you can use your CC on the new portal that was launched.

 

[Batman]

Does anyone know whether Income tax payment (Self assessment or Advance tax) can be made through credit cards?

Income tax website lists it is available as option under PG https://www.incometax.gov.in/iec/foportal/help/make-payment-online-faq but last time when I paid, it is accepting only Netbanking or Debit cards only?

Has anyone has experience paying it through credit cards?

I just checked. Didn't pay, just checked. Credit Card payment is possible.

 

[aay001]

You can pay advance tax, other taxes via credit card using new portal but there is a charge of 0.85%+GST making it effective 1.003% charge.

 

[Batman]

You can pay advance tax, other taxes via credit card using new portal but there is a charge of 0.85%+GST making it effective 1.003% charge.

Yes, I understood this part. As far as I know, advance tax is applicable for businesses. Is it also applicable for salaried employees for whom tax gets deducted before salary gets into bank account (Tax deducted at source)?

I am okay with the 1% charge. If I get worthy points on Credit card, this should be a good enough deal.

 

[thanix]

Yes, I understood this part. As far as I know, advance tax is applicable for businesses. Is it also applicable for salaried employees for whom tax gets deducted before salary gets into bank account (Tax deducted at source)?

I am okay with the 1% charge. If I get worthy points on Credit card, this should be a good enough deal.

Yes, it is also applicable if salaried employees have income from other sources. Else interest will be calculated from the quarter it is due during filing of return.

 

[thanix]

If I remember correctly the section is 234B and 234C.

 

[aay001]

Yes, I understood this part. As far as I know, advance tax is applicable for businesses. Is it also applicable for salaried employees for whom tax gets deducted before salary gets into bank account (Tax deducted at source)?

I am okay with the 1% charge. If I get worthy points on Credit card, this should be a good enough deal.

Yes any income tax liability greater than 10k is required to pay advance tax. TDS takes care of this for salary income but sometimes secondary income like interest, capital gain, job change requires advance tax.


Coming to rewards, yes you may get rewards based on cards you have, but banks may remove rewards if they find excessive misuse similar to rent payment.
P.S. - Recently launched SBI cashback card does not give 5% have verified

 

[thanix]

Coming to rewards, yes you may get rewards based on cards you have, but banks may remove rewards if they find excessive misuse similar to rent payment.
P.S. - Recently launched SBI cashback card does not give 5% have verified

By any chance, do you know HDFC Bank Diners Black gets reward points or at least it is counted towards monthly milestone reward for tax payment?

 

[aay001]

No idea on DCB. But should count towards milestones. Try doing a small transaction first. On Regalia it does

 

[Batman]

Yes any income tax liability greater than 10k is required to pay advance tax. TDS takes care of this for salary income but sometimes secondary income like interest, capital gain, job change requires advance tax.


Coming to rewards, yes you may get rewards based on cards you have, but banks may remove rewards if they find excessive misuse similar to rent payment.
P.S. - Recently launched SBI cashback card does not give 5% have verified

@aay001 and @thanixravindran thanks folks.
The way you two describe it, it seems like only tax applicable to non-salary sources can be paid here.

Can I pay my income tax via this method? I mean, instead of doing a tax deduction before salary gets credited, I instead pay advance tax using credit card.

 

[aay001]

Yes you can pay. Only thing is your company will still deduct tax as TDS as per there computation.
Any excess tax paid will be refunded while filling ITR at year end as per actual computation.
Advance tax is a bit confusing concept please see some articles or videos. CAs will be better person

 

[Batman]

Yes you can pay. Only thing is your company will still deduct tax as TDS as per there computation.
Any excess tax paid will be refunded while filling ITR at year end as per actual computation.
Advance tax is a bit confusing concept please see some articles or videos. CAs will be better person

haan ji. Also consulting a CA friend at the exact same time
But still, I wanted to check in with the community if people have done something like this and been successful.

The reward points on Magnus are beyond great. I want to be able to make use of it if I can.

 

[Sijick]

Yes, I understood this part. As far as I know, advance tax is applicable for businesses. Is it also applicable for salaried employees for whom tax gets deducted before salary gets into bank account (Tax deducted at source)?

I am okay with the 1% charge. If I get worthy points on Credit card, this should be a good enough deal.

Use the Kotak Mahindra Gateway, it is free, no charges.

 

[Sijick]

Yes you can pay. Only thing is your company will still deduct tax as TDS as per there computation.
Any excess tax paid will be refunded while filling ITR at year end as per actual computation.
Advance tax is a bit confusing concept please see some articles or videos. CAs will be better person

In case of income from other sources, you will need to pay IT + Penalty + Interest, as you have delayed payment on extra income you got via interest on savings/FD, equity, dividend, etc. So, if you pay Advance Tax, you will not be charged penalty + interest.

 

[Sijick]

I just checked. Didn't pay, just checked. Credit Card payment is possible.

you can, using kotak's gateway, it is zero charges. i paid just now.

 

[Gkcards]

I did few days back, I think used other gateway than kotak as paid some extra charge

 

[aamaadmi]

axis ace gives 2% rewards for this?

 

[aamaadmi]

you can, using kotak's gateway, it is zero charges. i paid just now.

whats the process to pay? used to pay using nsdl site and select challan 280 for advance tax. how is it here?