Now Reading: Income tax dues can be paid by credit card, but charges apply
-
01
Income tax dues can be paid by credit card, but charges apply
Taxpayers can pay advance tax, self-assessment tax and outstanding demands by credit card through the Income Tax Department’s e-filing portal. The e-pay tax facility is available before or after login, and also…
The Story in Brief
Taxpayers can pay advance tax, self-assessment tax and outstanding demands by credit card through the Income Tax Department’s e-filing portal. The e-pay tax facility is available before or after login, and also accepts debit cards, net banking and UPI through authorised payment gateways.
Mint reports that banks and gateways may charge 0.85% to 1.25% of the tax amount for credit card payments, citing an HDFC Bank report. The payment is treated as a regular card transaction. Interest applies if the full bill is not paid by its due date, though cards commonly offer an interest-free period of about 45 to 55 days. A challan receipt can be downloaded after payment.
The Indian Opinion
The easy-money pitch around credit card tax payments needs restraint. This is not a tax discount, and reward points do not erase processing fees or card interest. The option can help with a short cash-flow gap, but only for taxpayers certain they can clear the full bill on time. Before choosing it, compare the gateway charge with the cost of delaying payment and check the card’s billing date. The final test is simple: can the entire card balance be paid by the due date?
Source: livemint.com
This story was synthesised by AI from the source linked above.
