Income tax payment using credit cards

[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?
View attachment 59225

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.

 

[drmsiva]

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

I don't have savings account with IDFC.

Is there a cap on the reward rate per month for Wealth DC? I am not able to find the details from IDFC website.

Wealth Debit Card - Apply for Visa Wealth Debit Card Online | IDFC FIRST Bank

Wealth Debit Card: Enjoy special privileges such as airport lounge access, food & beverage benefits, Insurance Coverage & more. Click to Apply!

www.idfcfirstbank.com

 

[jack333]

I don't have savings account with IDFC.

Is there a cap on the reward rate per month for Wealth DC? I am not able to find the details from IDFC website.

Wealth Debit Card - Apply for Visa Wealth Debit Card Online | IDFC FIRST Bank

Wealth Debit Card: Enjoy special privileges such as airport lounge access, food & beverage benefits, Insurance Coverage & more. Click to Apply!

www.idfcfirstbank.com

Yes 50k points or 12.5k AGV

 

[brack]

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

That is what we assumed, as well.
However, since the taxes went onto the Infinia statement rather than the Regalia statement, we are expecting the taxes to count.

@sourpai, did you have the same situation when you upgraded cards?

 

[sourpai]

That is what we assumed, as well.
However, since the taxes went onto the Infinia statement rather than the Regalia statement, we are expecting the taxes to count.

@sourpai, did you have the same situation when you upgraded cards?

Yes. Transactions of old card statement will be visible in the new card statement. But I haven't experienced taxes part being charged.

However based on my interactions with customer care couple of times to check on total annual spends, they mentioned that spends from card set up date are counted

 

[brack]

Yes. Transactions of old card statement will be visible in the new card statement. But I haven't experienced taxes part being charged.

However based on my interactions with customer care couple of times to check on total annual spends, they mentioned that spends from card set up date are counted

Thanks for clarifying. Seems like we were a little carried away.