The deadline for filing Income Tax Returns (ITR) is fast approaching, with the last date being July 31. For many, the payment of a large amount for income tax is cumbersome, as they may not have planned for this expense in their monthly budget. For such taxpayers, using credit cards to pay income tax can be a helpful option. Paying income tax through credit cards not only relieves you of your income tax payment liability but also earns you reward points.

Several banks offer the facility of using credit cards for tax payments and earning reward points on the amount spent. Many of these banks also allow credit card users to convert these expenses into EMIs of 6, 12, 18, and 24 months.

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How to pay income tax using credit cards on the e-filing portal of the Income Tax Department

Step-by-step guide to pay income tax using credit cards (source:eportal.incometax.gov.in)

Step 1: Go here https://www.incometax.gov.in/iec/foportal/ and click on the e-Pay Tax button.

Step 2: A new webpage will open where you will need to enter your PAN and mobile number. Once done, click on ‘Continue.’ When you receive an OTP on your mobile, enter it in the appropriate field and click ‘Continue’ again. Once the OTP is verified, a success message will appear on a new webpage.

Step 3: A new webpage will appear with four options. To pay income tax using a credit card, select the “Income Tax” option and click ‘Proceed’.

Step 4: A new webpage opens asking for the assessment year and type of payment for which the transaction will be done. Select ‘type of payment’ and click ‘Continue.’

Step 5: A new webpage will open, asking for the breakdown of the amount you want to pay in the respective columns, such as tax, surcharge, cess, interest, etc.

Step 6: A new webpage will open, where 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, so you can check and compare them. Click on ‘Continue,’ and a new webpage will open, displaying the breakdown of the total tax payments.

Step 7: Once on the payment gateway page, enter your card number, CVV, and expiration date, and proceed to make the payment. Once the payment is successful, you will receive a confirmation message.

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Which credit cards can be used for paying income tax and earning reward points as well?

Many large banks, including HDFC Bank, ICICI Bank, SBI, Canara Bank, and IndusInd Bank, offer credit cards that facilitate tax payments.

IndusInd Bank on its website says, “Now, you can experience convenient tax payments with your IndusInd Bank’s credit card. What’s more, pay your taxes and earn reward points too. You can also split the transactions into easy EMIs of 6, 12, 18 or 24 months.