How to Pay Income Tax Online Using a Credit Card

Paying income tax online with a credit card is easy and safe. This method also allows individuals to earn reward points or cashback. They can conveniently make payments online to visit the bank or use cash. This approach helps individuals manage their finances more efficiently and ensures that taxes are paid on time. Learn how to pay income tax online through a credit card.

The income tax portal provides a quick and hassle-free way to pay taxes through various online payment options. Taxpayers can pay income tax, advance tax, self-assessment tax, TDS, STT, CTT, and interest tax.

 

Let’s discuss how to pay income tax online using a credit card in a step-wise manner:

 

1. Registration

Register on the income tax e-filing portal (https://eportal.incometax.gov.in/iec/foservices/#/login) by providing a Permanent Account Number (PAN), personal details, and contact information. If you have already registered, skip this step.

 

2. Log in

Log in to the portal using the user ID and password. A recovery option is available in case you forget credentials.

 

3. Navigate to Payment Option

To initiate the tax payment process, navigate to the 'e-Pay Taxes' option within the account.

 

4. Choose Tax Payment Type

Choose the applicable tax payment type. The option for 'Income Tax (other than companies)' should be selected for individual income tax payments.

 

5. Verify Details

Enter the required payment details, including the assessment year, PAN, and tax type, such as self-assessment tax, advance tax, or regular assessment tax.

 

6. Select the Payment Mode

Select 'Credit Card' as the preferred payment method and choose a suitable payment gateway.

 

7. Complete Payment

Provide accurate credit card details and follow the on-screen instructions to complete the payment securely.

 

Upon successful payment, a confirmation message and transaction ID will be generated. You should save these details for future reference.

 

Follow these steps to learn how to pay income tax through a credit card and ensure on-time payments. Those who prefer not to pay online can do so at a bank counter. In this case, they must print the challan and pay using cash, cheque, or demand draft.

ome tax using a credit card offers the following benefits:

Convenient and Hassle-Free

The entire transaction can be completed online from any location, making it an ideal option for individuals with demanding schedules.

Earn Rewards and Cashback

Many credit cards offer reward points, cashback, or other transaction benefits. Taxpayers who use a credit card for tax payments can take advantage of these perks, if the payment falls under any spend category.

Enhanced Security Measures

Credit card transactions are encrypted and mostly secure. This ensures that sensitive financial details remain safe throughout the payment process.

Instant Confirmation and Processing

Credit card payments are processed quickly, providing immediate confirmation. This removes any uncertainty regarding the payment status and ensures timely tax compliance.

Here's what one should do to track the income tax payment status: 

1. Visit the Income Tax e-Filing Portal: Log in to the e-filing website using account details.

2. Go to "View Returns/Forms": On the account homepage, navigate to the "View Returns/Forms" section to access detailed information about the tax returns.

3. Check "Tax Credit Statement (Form 26AS)": Review the Tax Credit Statement (Form 26AS) to confirm details of the tax payments and the years they apply to.

4. Check Payment Status: Ensure the payment status is marked as "Paid" or "Successful," indicating the completed income tax transaction.

5. Download Payment Receipt: Save the receipt as proof of payment, which can be helpful for future reference.