ITR filing 2024: Do you know you can now pay tax using your credit card? Here's how it is done

Are you dreading tax season? There's a faster, more convenient way to settle your dues: your credit card! While you typically use credit for bills and earn reward points, you should know that it can also be used to pay taxes. This guide will help you understand how to pay your income tax online using your credit card and securely enter your card information. However, remember that there may be processing fees, so weigh the convenience against the extra cost.

CA (Dr.) Suresh Surana explains how taxpayers can pay their taxes through a credit card by following these steps:

Step 1: On the Income Tax Portal, taxpayers can either click directly on ‘e-Pay Tax’ under the Quick Links column and enter their PAN/TAN details and mobile number to generate an OTP, or they can log in to the portal using their PAN and password and click on ‘e-Pay Tax’ under the ‘e-File’ tab.

Step 2: Taxpayers will be directed to the next page, where they need to select the type of payment as ‘Income Tax’ from the available options (i.e., Equalisation Levy, Securities Transaction Tax, Fees, Demand as regular assessment, etc.).

Step 3: They will then be required to select the assessment year to which the tax pertains and the minor head under which the payment needs to be made (i.e., Self-Assessment Tax, Advance Tax, etc.).

Step 4: Next, they need to enter the payment details, such as the amount of tax, surcharge, cess, interest, and penalty.

Step 5: The Income Tax department offers various payment options, empowering taxpayers to choose the one that best suits their needs. These options include net banking, debit card/credit card, pay at the bank counter, and UPI. If you choose to pay with a credit card, simply click on ‘Payment Gateway including UPI and Credit Card’. Keep in mind that credit card payments are subject to transaction charges, which vary from bank to bank. Therefore, consider these charges before making your decision. Finally, enter your credit card number, expiration date, and CVV to complete the transaction.