Income Tax via Credit Card: Steps, Charges and Key Details

Paying taxes is something adults do to help the government pay for schools, roads and hospitals.

In India, the Income Tax Department lets people pay their income tax using a credit card, just like buying something online.

First, the taxpayer logs into the official income tax e-filing website with their PAN, their password and a one-time code.

Then they choose the e-Pay Tax option and pick the type of tax they want to pay, such as advance tax, self-assessment tax or TDS.

They enter the amount, choose credit card as the payment method and finish the payment on a safe, authorised gateway.

After the payment is successful, the website gives a special receipt number called a CIN.

Using a credit card on the official portal is safe, but it comes with a small extra fee called a convenience charge.

Different banks charge different amounts, from about 0.72% to about 1% of the payment, plus an extra 18% tax on that fee.

Some credit cards give rewards like cashback for tax payments, worth about 2% to 3% of the amount, but not every card does.

So it is a good idea to check your card's rules before you pay.