Paying income tax using net banking, credit card or debit card? You will be charged for it if you don't have this bank account Know what are the charges, etc of other cards
You need to settle any unpaid income tax debt using the e-pay tax payment service, as failure to do so may lead to serious consequences such as potential imprisonment in certain cases. Fortunately, there are multiple methods to settle income tax, including using a credit card and taking advantage of EMI options available for credit cards. However, banks may charge fees for processing such tax payments, although some payment options are free.#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;}
ET Guide to ITR
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What is the penalty for filing ITR after the July 31 deadline
ITR filing: Claim these 4 deductions to reduce your tax outgo
Read on to understand the differences between free payment options and learn which option is suitable for various situations.
What are the options available for paying income tax on the e-filing portal's e-Pay tax feature
According to the income tax department website as of June 29, 2024, after generation of Challan (CRN), following modes are available to you for making income tax payments:Net Banking (select Authorised Banks)Debit Card of select Authorised BanksPay at Bank Counter (Over the Counter Payment at the Branches of select Authorised Banks)RTGS / NEFT (through any bank having such facility)Payment Gateway (using sub-payment modes as Net Banking, Debit Card, Credit Card, and UPI of any Bank)
What are the charges for each of the income tax payment methods
Here's a comparison of charges for all the income tax payment methods:Net-banking: As per the tax department's website, this method can only be used by those taxpayers having a bank account with an Authorised Bank. No transaction charge/fee is applicable for making tax payment through this mode.
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As of June 29, 2024 the list of authorised banks include: Axis Bank, Bank of Baroda, HDFC Bank, ICICI Bank, IDBI Bank, Kotak Mahindra Bank, Punjab National Bank, State Bank of India, Bandhan Bank, Bank of India, Bank of Maharashtra, Canara Bank, Central Bank of India, City Union Bank, DCB Bank, Dhanlaxmi Bank, Federal Bank, Indian Bank, Indian Overseas Bank, IndusInd Bank, Jammu and Kashmir Bank, Karnataka Bank, Karur Vysya Bank, Punjab and Sind Bank, RBL Bank, South Indian Bank, UCO Bank and Union Bank of India.
If your bank is not in this list mentioned above, then you can't use the Net-banking option on the e-filing ITR portal to pay income tax.
Debit card: Taxpayers having a debit card issued by an Authorised Bank (that offers this mode) can use it for tax payments. "No transaction charge/fee is applicable for making tax payment through this mode," said the income tax department on its website. The list of authorised banks for the debit card mode are Canara Bank, ICICI Bank, Indian Bank, Punjab National Bank and State Bank of India.
If you don't have a debit card issued by these banks, then don't worry. "This mode is for Authorised banks offering collections through their own Debit Card. For other banks' Debit Cards, please select "Payment Gateway" mode," said the income tax department on its website.
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Neither income tax refund nor any interest is given if you have filed the ITR with this amount of tax refund
Pay at bank branch: According to the income tax department's website, you can avail this mode to pay taxes at the counter of Authorised banks. Here's what you need to know about using this method of paying income tax at banks:
Printed and signed copy of Challan Form along with payment instrument needs to be presented before the branch of the selected Authorised Bank to make payment.Tax payment of more than Rs 10,000 in cash is not allowed under this mode.No transaction charge/fee is applicable for making tax payment through this mode.RTGS/NEFT: Under this mode of payment, you can use any bank which has RTGS/NEFT facility. All you need to do is select this option and then create a challan-cum-mandate form. Once it's done, take a printout of the same and go to any bank's website or branch and proceed to make the payment. However, do note that bank-specific charges for this payment mechanism are applicable. In case you wish to make an offline payment, you may go to any bank branch which has a facility for NEFT/RTGS payments.
According to the HDFC Bank website as of July 29, 2024, the NEFT charges done through HDFC Bank branches are Rs 2+GST for payment up to Rs 1 lakh and Rs 10+GST for more than Rs 1 lakh.
According to the Axis Bank website as of July 29, 2024, NEFT from Axis Bank branches are chargeable as follows:
Up to Rs 10,000: Rs 2.5 per transactionRs 10,001 to Rs 1 lakh: Rs 5 per transactionRs 1 lakh to Rs 2 lakh: Rs 15 per transactionAbove Rs 2 lakh: Rs 25 per transactionNEFT/RTGS through digital channels of Axis Bank: Free
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Payment Gateway including UPI/Credit card/others: This mode provides a wide range of payment options including Net Banking, debit card, credit card and UPI. The selected payment gateway will redirect to its own page and provide all the options available with that gateway. The transaction charges, if any, will be applicable over and above the tax amount in this mode. There are seven payment gateways, and the charges are different for all of them.
"Depending on your credit card's reward program, you can earn points or miles, turning a necessary expense (tax payment) into an opportunity for added value. Moreover, payments made using credit cards provides a digital record of transactions, which can be useful for keeping a track of your expense and for future reference," says Satya Padhiary, Vice President, Business Development, South Asia, Mastercard.
Here are the charges for Canara Bank's payment gateway:
Net Banking (HDFC Bank/ICICI Bank/YES Bank): Rs 14Net Banking (other banks): Rs 6Debit card (other bank): NilCredit Card (Canara Bank): 0.9%Credit Card (other bank): 0.9%RuPay Debit card: NilUPI: NilUPI QR code: Nil
Here are the charges for HDFC Bank's payment gateway:
Net-Banking (other bank): Not applicableDebit card (other bank): NilCredit card (HDFC Bank): 0.72%Credit card (other bank): 0.8%RuPay debit card: NilUPI: NilUPI QR code: Nil
Here are the charges for Bandhan Bank's payment gateway:
Net Banking (HDFC/ICICI/YES Bank): Rs 12Net Banking (other banks): Rs 8Net Banking (Axis/Kotak/SBI): Rs 10Debit card (other bank): NilCredit card (other bank): 1%RuPay debit card: Nil
Here are the charges for Kotak Mahindra Bank's payment gateway:
Net Banking (Axis/HDFC/ICICI/Kotak/SBI): Rs 7Net Banking (other bank): Rs 5Debit cards (Visa/MasterCard): NilRupay Debit Cards/UPI/ UPI QR: NilCredit cards (MasterCard/Visa/Rupay): 0.8%Credit Cards (international): 2.75%
"Recently, the Canara Bank gateway on the Income Tax website began accepting American Express (AMEX) cards for tax payments. They are charging a fee of 0.9% plus GST for these transactions. Although paying with AmEx cards does not earn reward points, the amount spent will count towards your spending milestones. Therefore, it is advantageous to use American Express cards, such as the AmEx Platinum Travel card, which offers points and other benefits for specific spending thresholds," says Ankur Mittal, co-founder and CTO, cardinsider.in, a credit card comparison website.
"Also, I would like to inform that Mastercard is running a campaign where taxpayers using credit cards issued on our network can avail an exclusive 5% additional discount on Clear (Terms & Conditions apply)," says Padhiary.
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This story originally appeared on: India Times - Author:Faqs of Insurances
