Income tax payment using credit cards

[Dragon_slayer]

No - Only 3X (per Rs 150) for Wealth - 0.75%

Need to add payment gateway charges as well.

Pay via Wealth Debit card, no gateway charges

 

[Lobogris]

Even GST allows payment by credit cards.... but why hold bull by its horns....
it's like opening your wallet to the already ever suspicious IT deptt
TOO MUCH GREED IS BAD FOR HEALTH

What's the worry or fear? As long as one is reporting income and paying tax, one can spend as much as one wants on any card. I routinely spend more than 10 lakhs on several cards, sometimes within a month and no one has ever questioned it. Nor am I concerned about it.

 

[Batman]

TDS is mandatory for the company to deduct, if you are in the tax bracket. If you have non salary sources such as bank or FD interest, rental income, dividend income, capital gains due to stock market/MFs etc, then advance tax is payable when such non TDS tax > 10000 a year. (TDS deducted includes TDS on salary, on interest/dividend etc as deducted by the payer).

In case you feel you have other than salary taxable income, you can use the IT calculator on IT site and calculate advance tax and then pay accordingly.

Thank you for this detailed information. I'll check with a CA, but I think LTCG and STCG might also fit this category. In that case, I think I might have a decent tax to pay in advance via CC.

 

[shash5252]

I'm attempting to make a payment on a website(govt website)using debit card(slice card), but a convenience fee is added when I do. However, when I use another card from banks like hdfc, Karnataka Bank there is no convenience fee. The slice card is not an credit card but still convience fee is added. What could be the issue?

 

[350modena]

Thank you for this detailed information. I'll check with a CA, but I think LTCG and STCG might also fit this category. In that case, I think I might have a decent tax to pay in advance via CC.

LTCG on equity / MFs is taxed at 10% plus cess (surcharge if income > 50 lakhs). STCG is at regular tax slab. So yes if you have these 2 sources than advance tax can be paid.

Any excess tax paid to income tax is refunded at the time of assessment along with interest!

 

[Lobogris]

I'm attempting to make a payment on a website(govt website)using debit card(slice card), but a convenience fee is added when I do. However, when I use another card from banks like hdfc, Karnataka Bank there is no convenience fee. The slice card is not an credit card but still convience fee is added. What could be the issue?

Generally, all CC charge a fee. Rather, the gateway charges it. I have paid via Axis Atlas earlier and the fee was shown upfront by the gateway. Recently, I paid via SC Smart Card and it showed no fee. I was happy but SC charged it a day later when the transaction posted.

 

[panu24]

Generally, all CC charge a fee. Rather, the gateway charges it. I have paid via Axis Atlas earlier and the fee was shown upfront by the gateway. Recently, I paid via SC Smart Card and it showed no fee. I was happy but SC charged it a day later when the transaction posted.

As I have SC smart card, I am interested to know what kind of transaction and on which platform you did that where you got charged later. Is it for paying tax on income tax website? But isn't charges already mentioned on that site?

 

[Lobogris]

As I have SC smart card, I am interested to know what kind of transaction and on which platform you did that where you got charged later. Is it for paying tax on income tax website? But isn't charges already mentioned on that site?

Yes, for paying advance tax on income tax website. Normally charges are mentioned but this time, no additional charge was shown and in fact initially, only the tax amount was charged on the card. However, a couple of days later, the additional charge was added along with cashback, just like what happens with fuel transactions

 

[brack]

LTCG on equity / MFs is taxed at 10% plus cess (surcharge if income > 50 lakhs). STCG is at regular tax slab. So yes if you have these 2 sources than advance tax can be paid.

Any excess tax paid to income tax is refunded at the time of assessment along with interest!

STCG on equity is at 15%. STCG for everything else is at tax slab rate.

 

[brack]

Thank you for this detailed information. I'll check with a CA, but I think LTCG and STCG might also fit this category. In that case, I think I might have a decent tax to pay in advance via CC.

Capital Gains do fit in this category. There will be transaction fees.
However, spouse and I put both our advance taxes on CG and OS in March on a HDFC Regalia card and thus exceeded the spend threshold required for Infinia.
Next day, we called up the RM and got a FYF Infinia within 2 weeks.
When we looked at the card statement, we were pleasantly surprised to see that the taxes paid were now in the Infinia statement.
So now, we have crossed more than half the spend criteria for the first year before we spent anything on the Infinia.
The tax payment fees were worth it for us.

(OS is Other Sources)

 

[sourpai]

Capital Gains do fit in this category. There will be transaction fees.
However, spouse and I put both our advance taxes on CG and OS in March on a HDFC Regalia card and thus exceeded the spend threshold required for Infinia.
Next day, we called up the RM and got a FYF Infinia within 2 weeks.
When we looked at the card statement, we were pleasantly surprised to see that the taxes paid were now in the Infinia statement.
So now, we have crossed more than half the spend criteria for the first year before we spent anything on the Infinia.
The tax payment fees were worth it for us.

(OS is Other Sources)

I don't think spends made on regalia will count on Infinia. That is generally not the case. Usually spends made post card set up date are counted for annual fee waiver

 

[Batman]

Capital Gains do fit in this category. There will be transaction fees.
However, spouse and I put both our advance taxes on CG and OS in March on a HDFC Regalia card and thus exceeded the spend threshold required for Infinia.
Next day, we called up the RM and got a FYF Infinia within 2 weeks.
When we looked at the card statement, we were pleasantly surprised to see that the taxes paid were now in the Infinia statement.
So now, we have crossed more than half the spend criteria for the first year before we spent anything on the Infinia.
The tax payment fees were worth it for us.

(OS is Other Sources)

This is possible the best outcome that you could have hoped from this situation (barring an LTF Infinia, of course).

Brilliant, brilliant stuff. I'll check if my gains in STCG/LTCG are sufficient to suck up a major share of annual fees. If yes, I'll try for Infinia.

 

[350modena]

STCG on equity is at 15%. STCG for everything else is at tax slab rate.

Yes missed the clarify that.

 

[350modena]

Capital Gains do fit in this category. There will be transaction fees.
However, spouse and I put both our advance taxes on CG and OS in March on a HDFC Regalia card and thus exceeded the spend threshold required for Infinia.
Next day, we called up the RM and got a FYF Infinia within 2 weeks.
When we looked at the card statement, we were pleasantly surprised to see that the taxes paid were now in the Infinia statement.
So now, we have crossed more than half the spend criteria for the first year before we spent anything on the Infinia.
The tax payment fees were worth it for us.

(OS is Other Sources)

good strategy. I really barely use my LTF regalia - I try and put most of my spends on my Amex. Does amex work for advance taxes ?

 

[drmsiva]

As I have SC smart card, I am interested to know what kind of transaction and on which platform you did that where you got charged later. Is it for paying tax on income tax website? But isn't charges already mentioned on that site?

Does SC smart card gives rewards for tax payments? Thanks.

 

[panu24]

Does SC smart card gives rewards for tax payments? Thanks.

I have not tried it and no plans for it to use yet.

 

[Wealth is my birth right!]

Does SC smart card gives rewards for tax payments? Thanks.

I have not tried it and no plans for it to use yet.

I used idfc cards and got points try it if you’re holding idfc

 

[drmsiva]

I used idfc cards and got points try it if you’re holding idfc

I have IDFC wealth CC and used it for advance tax till last month.

As you may know, IDFC has reduced the rewards for Govt transactions recently - only 3 points per Rs 150 now - 0.75%.

Once you add the Payment Gateway charges, there's no benefit apart from interest free period till due date.

 

[Wealth is my birth right!]

I have IDFC wealth CC and used it for advance tax till last month.

As you may know, IDFC has reduced the rewards for Govt transactions recently - only 3 points per Rs 150 now - 0.75%.

Once you add the Payment Gateway charges, there's no benefit apart from interest free period till due date.

Thats sad i used my wealth card last year and got good rewards
Yes recent devaluation hit almost all cards a lot

 

[Dragon_slayer]

I have IDFC wealth CC and used it for advance tax till last month.

As you may know, IDFC has reduced the rewards for Govt transactions recently - only 3 points per Rs 150 now - 0.75%.

Once you add the Payment Gateway charges, there's no benefit apart from interest free period till due date.

I think Wealth DC would have no gateway charges, but same reward rate.