ITR Filing: Easy Guide to Pay Income Tax Using Your Credit Card

ITR Filing: Easy Guide to Pay Income Tax Using Your Credit Card

ITR Filing: Easy Guide to Pay Income Tax Using Your Credit Card

Share This News

Discover the convenience and benefits of using a credit card for income tax payments for FY 2023-24 .

As the deadline for filing income tax returns (ITR) for FY 2023-24 approaches on July 31, using a credit card to pay income tax offers several advantages. It offers benefits including convenience and the potential to earn rewards. The Government of India’s new I-T portal, launched on May 20, 2021, supports various online payment options, including credit cards. It helps making it easier for taxpayers to fulfill their tax-related tasks.

Benefits of Using a Credit Card for Tax Payments

Using a credit card for tax payments ensures immediate acknowledgment of your payment and offers several benefits. It allows you to manage your tax obligations even when cash reserves are low and in avoiding penalties or interest on late payments. You can also earn reward points for every rupee spent, redeemable for travel, shopping, and gift cards. Additionally, timely payments can positively impact your credit score.

Steps to File Income Tax and Make Payment Using a Credit Card

Register on the I-T portal by visiting www.incometax.gov.in. Create an account if you haven’t already. Provide your PAN, personal details, and contact information. Log in using your user ID, password, and OTP sent to your registered mobile number.

Initiate tax payment by navigating to the ‘e-Pay Taxes’ option on the portal. Enter your PAN and select the appropriate assessment year.

Select a credit card that aligns with your financial goals and also offers suitable rewards. Make sure if your card is enabled for online transactions and has a sufficient credit limit.

Enter your credit card details accurately, including card number, CVC, and expiry date.

Understand any convenience fees charged by the payment processor or your card issuer. Compare these fees with potential rewards to assess the financial benefit of using your credit card.

Review all entered details for accuracy and confirm the payment to receive a tax payment receipt.

Monitor your credit card statement to ensure the tax payment is reflected correctly and save the payment receipt for future reference.

Note 

Familiarize yourself with your credit card’s terms and conditions before making the payment. Plan your payment to maximize rewards and manage cash flow effectively.

With a credit card, taxpayers can streamline their financial obligations while enjoying additional perks offered by credit card reward programs.