what is the right Credit Card for Employees to pay income tax?

[snune]

Hi Iam new to Technofino community.

I am a pvt employee, looking for right credit card for paying income tax. The plan is to pay advance tax monthly through income tax portal.
I am planning to do this by declaring additional investmentment declaration to avoid tax deduction from pay roll team. At the same time, I am planning to pay advance tax through income tax portal every month during salary deduction period to avoid interest on income tax at last moment. I pay good amount of tax every year and this thought came into mind to leverage the tax paid through some rewards or cashback or any other form. What is the right strategy to get return on tax payment considering the fact that income tax portal charges additional amount on credit card payment except for sbi cards

I want to know if my strategy can work in reality as payroll team usually dont consider the advance tax paid during salary credit.

 

[NAB]

Don't do this to save peanuts. Wrong declarations can backfire sometimes. Try to be ethical as much as you can.

Instead, invest your time and energy to earn more.

 

[sourpai]

As per law, employer / payroll team has to deduct Tax and deposit with Income tax authorities. You can't really escape that. So paying your own TDS for salary credit is not possible

You can however pay tax on other income apart from Salary, such as FD interest, LTGC, STCG etc.

 

[snune]

Don't do this to save peanuts. Wrong declarations can backfire sometimes. Try to be ethical as much as you can.

Instead, invest your time and energy to earn more.

@sourpai , Thanks for confirming that its a mandatory law. This makes it clear now.

@NAB , I understand and agree with you. Its not about escaping something or be-unethical. I am looking for options if I can optimise tax payments in a legal ethical way.

 

[NAB]

@sourpai , Thanks for confirming that its a mandatory law. This makes it clear now.

@NAB , I understand and agree with you. Its not about escaping something or be-unethical. I am looking for options if I can optimise tax payments in a legal ethical way.

Yes, bro. Declaring additional Investments, which you probably won't be having. That's unethical and illegal as well.
How much you will save by this? Even if TDS is 15K per month, at a 2% rate, you barely save Rs. 300. Not worth it bro.

 

[snune]

@NAB , I understand the definition of declaration. "Illegal" is too strong a word in this context. Even if you declare beyond your investments, you need to pay the interest amount at the end of the fiscal year or when you file returns, and you can't avoid this.

Anyway, I assume you understand my intent. I wouldn't have asked if it were a small amount. The example I gave was about declarations. I'm looking for a better way to manage this. For instance, for business people, the HDFC Biz Black offers a good reward rate. With the significant taxes I pay, it's natural to explore if there is a legitimate way to leverage credit cards.

 

[350modena]

@NAB , I understand the definition of declaration. "Illegal" is too strong a word in this context. Even if you declare beyond your investments, you need to pay the interest amount at the end of the fiscal year or when you file returns, and you can't avoid this.

Anyway, I assume you understand my intent. I wouldn't have asked if it were a small amount. The example I gave was about declarations. I'm looking for a better way to manage this. For instance, for business people, the HDFC Biz Black offers a good reward rate. With the significant taxes I pay, it's natural to explore if there is a legitimate way to leverage credit cards.

The income tax declaration given by you to your company's payroll team can be optimised to reduce TDS. However, most company come January will ask for investment proofs to ensure that they deduct the complete amount of TDS by March of 25.

If you have non salary income, such as interest from savings / FD, equity shares / MFs capital gains, rental income, etc - the advance tax payable every quarter can be optimised and paid via CC (0.80 % charges). Self assessment tax can also be paid this way.

Deciding between Old and New Regime in your tax declaration form can also decide amount of TDS deducted.