How to Pay Taxes Through Credit Card?

The Income Tax e-filing portal allows you to pay taxes through a credit card. In this article, we will go through the steps to pay taxes with credit and look at the benefits of doing so.

How to Pay Income Tax with a Credit Card?

Follow these steps to pay income tax with your credit card.

Step 1: Log in to the Income Tax e-filing portal with your credentials.

Step 2: On the “E-file” dropdown list click on “E-Pay Tax”.

Step 3: Click on “New Payment” in the top right corner.

Step 4: Click on “Proceed” under the “Income Tax” tab.

Step 5: Choose the Assessment Year, and Payment Type, and click on “Continue.”

Step 6: Fill in the tax details and click on “Continue.”

Step 7: Review the challan summary, then go to the payment mode and select “Payment Gateway including UPI and Credit Card.”

Step 8: Choose a payment gateway.

Step 9: Click on “Pay Now” and you will be redirected to the payment gateway.

Step 10: Select the “Credit Card” option and enter your card details.

Step 11: Confirm the payment.

You will get a payment confirmation once the transaction is completed.

Benefits of Paying Taxes with a Credit Card

There are many benefits to paying taxes through your credit card.

By paying income tax via credit card you will be able to file the challan online. This way you get an immediate acknowledgement of remittance.
If you are a merchant, the government will provide a tax rebate if you have performed up to 50% of your transactions through cashless means.
You will receive tax rebates if you use your credit card to pay a portion of your utility bills.
Paying income tax through a credit card will give you an accurate record of your payments.
By paying taxes through your credit card you can also earn reward points.

Conclusion

Paying taxes with a credit card offers a convenient and flexible way to meet your tax obligations. With the potential to earn rewards and manage your cash flow, it’s an option worth considering for many taxpayers. However, it’s essential to weigh the associated fees and interest rates against the benefits to ensure it’s the right choice for your financial situation.