Payments are processed through authorised payment gateways. While this option can help taxpayers clear pending dues before the ITR filing deadline, it is important to note that payment gateways levy convenience charges, along with applicable GST.
How to pay income tax using a credit card
- To make an income tax payment using a credit card:
- Visit the Income Tax e-filing portal and log in using your PAN, password and OTP.
- Go to e-File and select e-Pay Tax.
- Click New Payment.
- Select the type of tax payment, such as Advance Tax, Self-Assessment Tax,
- TDS or other applicable tax dues.
- Enter the required payment details.
- Choose Credit Card as the payment mode.
- Enter your card details and complete the transaction through the authorised payment gateway.
- After the payment is successful, a Challan Identification Number (CIN) will be generated.
- Download and save the payment receipt for your records.
What are the charges?
Payment gateways generally charge a convenience fee for credit card transactions. The charges vary by bank.
| Payment Gateway | Convenience Fee* |
| HDFC Bank | Around 0.72% (HDFC credit cards), 0.80% (other bank credit cards) |
| Federal Bank | Around 0.85% |
| ICICI Bank | Around 0.85% (retail credit cards) |
| Canara Bank | Around 0.90% |
| Bank of Maharashtra | Around 1% |
| Bandhan Bank | Around 1% |
*An additional 18% GST is applicable on the convenience fee.
Can you earn credit card rewards?
Some credit card issuers offer reward points, cashback or other benefits on tax payments made through credit cards. Depending on the card and its terms and conditions, users may receive rewards equivalent to 2% to 3% of the transaction value.
However, not all credit cards provide rewards on government transactions, so taxpayers should check their card’s terms before making the payment.
Is it safe to pay income tax with a credit card?
Yes. Paying income tax through the official Income Tax Department’s e-filing portal is considered safe, as transactions are processed through authorised payment gateways.
Taxpayers should avoid making payments through unofficial links or third-party websites and should always download the payment receipt after the transaction is completed.
(Edited by : priyanka deshpande)
