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How to Pay Income Tax Using Credit Cards and UPI Payments?

Over the past few years, the Indian Income Tax Department has made many efforts to make the ITR (Income Tax Returns) filing process simpler and hassle-free for individuals. The IT department even created a new portal for returns filing and form correction.

In line with its efforts to simplify the ITR filing process, one of the noteworthy changes implemented by the IT department is the introduction of new tax payment methods through UPI (Unified Payment Interface) and credit cards on the new portal.

If you are unaware of the steps to pay your income tax using a credit card or UPI, here is a detailed guide.

Step 1

Visit the e-filing portal and log into your account with your unique ID and password.

Step 2

Click on the ‘e-file’ menu, select the ‘e-pay tax’ option, and then on the new payment tab.

Step 3

Choose ‘proceed’ for the type of tax you want to pay. If you want to file income tax returns, choose income tax.

Step 4

Now choose the assessment year for which you want to file the tax returns, such as 2022-23 or if you want to make advance tax payment for the next year, choose 2023-24 and then click on the ‘continue’ button.

Step 5

Enter the details of the tax breakdown you want, like CESS, tax, surcharges, etc. and click on ‘continue.’

Step 6

At this juncture, the portal will give you the option to choose the preferred payment modes to make the tax payments. There are five options – net banking, RTGS/NEFT, debit/credit card, payment gateways, and pay-at-bank counters.

Step 7

Choose your preferred payment option and click on ‘continue.’

Step 8

If you choose the debit/credit card option, you may have to enter the card details like card number, expiry date, card pin or CVV number, and name on the card. Once you enter the necessary details, click on the pay now button. You may be redirected to a different page where you must enter the OTP you receive on your registered mobile number to authenticate the transaction. Enter the OTP and complete the payment.

If you choose the payment gateway/UPI option, you may have to enter the UPI details. And proceed to make the payment.

Step 9

After successfully paying your income tax, the IT department will send you a challan on your registered email. You also get a confirmation of the tax receipt on your registered mobile number.

Now that you know the steps to pay income tax using a credit card and UPI payments, make sure to file your taxes diligently to avoid legal issues. Also, while paying your income tax, make sure that you take advantage of the various tax deductions available to you under different sections of the Indian Income Tax Act. This is important to get income tax savings and reduce your annual tax liability.

Fees for paying taxes through the income tax portal

Unlike paying taxes through the NSDL website, which does not levy fees, there may be fees for depositing taxes through the e-filing income tax portal. However, the fees will be levied based on the payment option you select.

You need not pay additional fees if you choose to pay taxes through net banking or the debit card option. However, if you choose to pay taxes through UPI or payment gateway and credit card, you have to pay a fee of 0.85% of the payment plus Rs. 12 GST.

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