Now paying income tax through select credit cards can be rewarding; know how to pay income tax through credit cards These cards provide savings of up to 16% and 8% respectively on income tax and GST payments, respectively
The burden of paying a huge amount as income tax can be challenging for some people and may even be unmanageable at times due to cash flow issues. In such situations, using a credit card to pay income tax can be beneficial. Additionally, specific credit cards may provide appealing reward points when used to pay income tax.#sr_widget.onDemand p, #stock_pro.onDemand p{font-size: 14px;line-height: 1.28;} .onDemand .live_stock{left:17px;padding:1px 3px 1px 5px;font-size:12px;font-weight:600;line-height:18px;top:9px} #sr_widget.onDemand .sr_desc{margin:0 auto 0;} #sr_widget.onDemand .sr_desc{color: #024d99;margin-top:10px;} #sr_widget.onDemand .crypto .live_stock .lb-icon{8px 6px 5px 3px !important} #sr_widget.crypto.onDemand a.text{border-bottom:1px solid #ccc;padding-bottom:5px;display:block;width:100%} #sr_widget.onDemand .sr_desc .text p, #stock_pro.onDemand .sr_desc .text p{font-size:12px;font-weight:400;}
Which credit cards offer reward points on paying income tax
"Only a few credit cards offer reward points on income tax payments in India. Currently, only a select few cards, such as the HDFC BizBlack and HDFC BizPower credit cards, offer rewards for tax payments. These cards provide savings of up to 16% and 8% respectively on income tax and GST payments, respectively. Besides these you can also use other credit cards which provide milestone benefits even on paying income tax using it like SBI Vistara Cards/IDFC Vistara Card where you can earn complimentary flight tickets on reaching the milestone," says Ankur Mittal, co-founder and CTO, cardinsider.com, a credit card comparison website.However, do note that the savings feature on HDFC Bank's Biz Black credit card becomes useful only when you take up the partnered offers.
Although the reward rate might be tempting, note that these savings are given as reward points. You will have to redeem the reward points at the partnered merchant. Some of the partnered merchants and locations include Taj Hotel, lounge access (domestic and international), Marriott Hotels, etc. If you don't have any use of the offers issued through partnerships with other brands, then getting the claimed maximum savings on tax payments using HDFC Bank's Biz Black credit card is difficult. For example: if you or your family don't play golf, then this reward point redemption feature of complimentary gold games is not useful for you.
Multiple terms and conditions apply, including a maximum cap on reward point earnings, for availing of and getting the maximum savings on tax payments using the HDFC Bank BizBlack credit card.
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According to the HDFC Bank website as of July 11, 2024, "Flights and Hotels redemption: Credit Card members can redeem up to a maximum of 70% of the booking value through Reward Points. Rest of the transaction amount will have to be paid via the Credit Card limit."?
Source: HDFC Bank website as of July 11, 2024
If you want to read the full terms and conditions go here: https://www.hdfcbank.com/personal/pay/cards/business-credit-cards/biz-black
Here's a table showing how and in which conditions the maximum savings on Biz Black credit card can be possibly earned.
Source: HDFC Bank website as of July 11, 2024 If you want to read the document go here: https://www.hdfcbank.com/content/bbp/repositories/723fb80a-2dde-42a3-9793-7ae1be57c87f/?path=/Personal/Pay/Cards/Business%20Credit%20Card/Biz%20Black/Biz-Black-Value-chart.pdf)
How you can make income tax using credit cards on the e-filing ITR portal
Here is a step-by-step guide on how to make income tax payments using credit cards:Step 1: Go here https://www.incometax.gov.in/iec/foportal/ and click on the e-Pay Tax button.
Source: https://www.incometax.gov.in/iec/foportal/Step 2: A new webpage will open and here you will have to type in your PAN and mobile number. Once done, click on ‘Continue. When you receive an OTP on your mobile, enter it in the appropriate field. Click ‘Continue’ once done. Once the OTP is verified a success message will appear on a new webpage.
Source: https://eportal.incometax.gov.in/iec/foservicesStep 3: A new webpage will appear with four options. Since we are discussing paying income tax using credit cards, select the “Income Tax” button and click ‘Proceed’.
Source: https://eportal.incometax.gov.in/iec/foservices/#/e-pay-tax-prelogin/e-pay-tax/tilesStep 4: A new web page will open. It will ask for the assessment year and type of payment for which this transaction is being made. Once selected, click on ‘Continue.’
Source: https://eportal.incometax.gov.in/iec/foservices/#/e-pay-tax-prelogin/e-pay-tax/add-tax-applicable-detailsStep 5: A new webpage will open and it will ask for the breakup of the money you want to pay in the respective columns-tax, surcharge, cess, interest, etc. We will pay Re 1 in the tax column using a credit card in this example.
Source: https://eportal.incometax.gov.in/iec/foservices/#/e-pay-tax-prelogin/e-pay-tax/add-tax-breakup-detailsStep 6: A new webpage will open and here you need to click on the ‘Payment Gateway including UPI and Credit Card’ option and then select the payment gateway. The charges for all the payment gateways are different. You can check the charges and compare them with the available options. Click on ‘Continue’ and then a new webpage opens. On this page, you can see the breakdown of the total tax payments.
Source: https://eportal.incometax.gov.in/iec/foservices/#/e-pay-tax-prelogin/e-pay-tax/add-payment-detailsStep 7: Once on the payment gateway page, type in your card number, CVV and expiration date and proceed to make the payment. Once the payment is successful.
Source: https://services.billdesk.com/easytax/web/tin/updatePIDetails/KKBK#sr_widget.onDemand p, #stock_pro.onDemand p{font-size: 14px;line-height: 1.28;} .onDemand .live_stock{left:17px;padding:1px 3px 1px 5px;font-size:12px;font-weight:600;line-height:18px;top:9px} #sr_widget.onDemand .sr_desc{margin:0 auto 0;} #sr_widget.onDemand .sr_desc{color: #024d99;margin-top:10px;} #sr_widget.onDemand .crypto .live_stock .lb-icon{8px 6px 5px 3px !important} #sr_widget.crypto.onDemand a.text{border-bottom:1px solid #ccc;padding-bottom:5px;display:block;width:100%} #sr_widget.onDemand .sr_desc .text p, #stock_pro.onDemand .sr_desc .text p{font-size:12px;font-weight:400;}
This story originally appeared on: India Times - Author:Faqs of Insurances
