Pay your Income Tax Online through Credit Cards. Check Out How?

Posted on Monday, March 6th, 2023 | By IndusInd Bank

Over the last few years, the government has been actively trying to simplify filing of taxes and have made tax payments more accessible.

The Government of India has introduced an e-tax provision through which taxpayers can pay income tax on the e-filing portal. You can now pay your taxes through pay-at-bank counters, UPI, internet banking (RTGS/NEFT), and debit andcredit cards. In fact, credit card holders can claim additional tax benefits on payments.

As a credit cardholder, you might wonder how to pay taxes using your credit card. Well, read on to find out.

Payment of Tax through Credit Cards

The Government of India introduced cashless transactions to curb the use of unaccounted cash across the country. To further encourage non-cash transactions, it has proposed tax benefits to individuals using their credit cards to file income tax returns.

Cardholders can now benefit from quick and convenient transactions. At the same time, the government can stop the flow of counterfeit currency and reduce tax avoidance by individuals who find tax payments difficult.

While you can receive benefits on tax payments using your credit card, knowing what you can claim is equally important. We have listed all the benefits you can claim as an individual or as a merchant to help you understand better.

Benefits on paying Income Tax via a Credit Card

• You can file a challan online and immediately receive the remittance and fund transfer acknowledgement.
• The online challan will include your unique Corporate Identity Number and can be downloaded at any time or printed for future reference.
• Whether you are filing taxes as an individual or on behalf of your firm or company, you can do so online at any time of the day.
• You can save on fuel surcharge on paying your taxes using your credit card.
• You can claim tax rebates on paying your utility bills via cashless mode.
• Merchants that facilitate tax payments using credit cards can claim reduced MDR (Merchant Discount Rate) charges from partner banks.
• Merchants can receive tax rebates if they have performed 50% of their transactions through cashless modes of payment.

Given the slew of benefits that can be derived by paying taxes through your credit card, it is essential that you learn to use your card for tax payments. The good news is that it is quick and easy. All you have to do is follow these steps.

How to Pay Taxes using a Credit Card?

Step 1: Visit the TIN-NSDL website and log in.

Step 2: Select the Challan Application Number as directed. You can choose different types of challans, including ITNS 280, ITNS 281, ITNS 282 or ITNS 283.

Step 3: Provide your PAN card and TAN details as asked. These will be verified online.

Step 4: Post-authentication, you can fill in challan details, such as the name and address linked to the PAN/TAN, the partner bank details, the accounting head for the transaction, etc.

Step 5: Once the data is submitted, you will be prompted to confirm the entered data. Then, you will be directed to your partner bank’s Internet Banking platform.

Step 6: Now, you can log into your bank’s platform and pay your taxes using your credit card.

Step 7: Once the transaction is complete, you will receive a counterfoil with the CIN, banking details as well as the transaction amount.

It’s that simple!

Conclusion

Equipped with the above information, you can quickly pay income tax using your credit card. And if you are an IndusInd Bank credit card holder, you can get even more benefits on your income tax payments. We offer benefits like cashbacks, reward points that never expire, fuel surcharge waivers, lounge access, and plenty of other offers. So, why wait? Start paying your taxes using IndusInd Bank credit cards online.

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.