When it's time to pay income tax, you have several options, these include net banking credit cards and debit cards.
Anisha Kumari | Jul 30, 2024 |
Get Reward Points by Paying Income Tax with Net Banking, Credit Cards and Debit Cards
When it’s time to pay income tax, you have several options, these include net banking credit cards and debit cards. Be aware that you might face charges if your bank account isn’t from an authorized bank. Here’s a simple guide on how to pay income tax using these methods.
The income tax department’s e-Pay tax feature offers several ways to pay taxes. One convenient method is Net Banking. This option is available for accounts with authorized banks. It doesn’t incur any transaction fees. Authorized banks include Axis Bank, HDFC Bank, ICICI Bank and State Bank of India. If your bank is on this list, you can use net banking without worrying about extra costs.
For those who prefer using a Debit Card, this method is also free of transaction fees. This is valid if your card is issued by authorized banks like Canara Bank, ICICI Bank, Indian Bank and State Bank of India. If your debit card is from a different bank, you can still make your payment through “Payment Gateway” mode. This mode offers a wide range of options.
Another straightforward option is to “Pay at the Bank Branch”. You need to present a printed and signed Challan form at the branch of an authorized bank. Note that cash payments over Rs.10000 are not allowed. There are no transaction fees for this method.
For more flexibility, you can use “RTGS/NEFT”, this method is available with any bank offering RTGS/NEFT services. You will need to create challan-cum-mandate form and then proceed with payment through the bank’s website or branch. However, be aware that bank-specific charges apply. For example, HDFC Bank charges Rs.2+GST for payments up to Rs.1 lakh.
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Payment Gateway option offers the most variety allowing payments through net banking debit cards, credit cards and UPI. Here are the charges for some common banks:
Payment Gateway of Canara Bank
Net Banking HDFC Bank/ICICI Bank/YES Bank: Rs.14
Net Banking (other banks): Rs.6
Debit Card (other banks): Nil
Credit Card (Canara Bank and others): 0.9%
RuPay Debit Card and UPI: Nil
Payment Gateway of HDFC Bank
Net Banking (other banks): Not applicable
Debit Card (other banks): Nil
Credit Card (HDFC Bank): 1.72%
Credit Card (other banks): 0.8%
RuPay Debit Card and UPI: Nil
Payment Gateway of Bandhan Bank
Net Banking (HDFC/ICICI/YES Bank): Rs.12
Net Banking (other banks): Rs.3
Net Banking (Axis/Kotak/SBI): Rs.10
Debit Card (other banks): Nil
Credit Card (other banks): 1.5%
RuPay Debit Card and UPI: Nil
Payment Gateway of Kotak Mahindra Bank
Net Banking (Axis/HDFC/ICICI/Kotak/SBI): Rs.7
Net Banking (other banks): Rs.5
Debit Cards (Visa/MasterCard): Nil
RuPay Debit Cards/UPI: Nil
Credit Cards (MasterCard/Visa/RuPay): 0.8%
Credit Cards (international): 2.75%
Using a credit card to pay your taxes can also earn you reward points or miles. This turns your tax payment into an opportunity for added value. For instance, Mastercard offers a 5% additional discount on Clear for taxpayers using their credit cards. Additionally, while American Express cards don’t earn reward points for tax payments, the amount spent counts toward spending milestones. This can be beneficial.
In conclusion, choose the payment method that best suits your bank and needs. This helps avoid extra fees and ensures a smooth tax payment process. Whether you prefer net banking, debit cards or credit cards, there are options available to make paying your income tax as easy and cost-effective as possible.
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