Paying taxes with a credit card is a very viable option for many, offering both flexibility and added benefits. Yes, it is possible to pay your income tax with a credit card in India, and several banks have introduced credit cards. The Indian government allows taxpayers to use credit cards to settle their dues, which opens up a world of convenience.
Paying taxes through credit cards can come with various perks, such as reward points, cashback, and the ability to earn loyalty benefits. The best credit cards for utility bill payments and rent payments often provide similar rewards, making them ideal for those looking to maximize their financial flexibility. Hence consider credit cards for tax payments, which may include small processing fees.
If you’re looking for the best credit cards for utility bill payments, rent payments, or tax payments, there are several options to explore. This blog will help you provide detailed information on credit cards, allowing users to manage their tax payments.
Credit Cards for Tax Payments
The table below outlines some of the top credit cards that offer the best benefits and rewards when used specifically for tax payments, ensuring you maximize savings, rewards, and convenience while handling your tax obligations:
| Bank | Credit Cards |
| HDFC Bank |
|
| SBI Credit Card |
|
| ICICI Bank |
|
| Axis Bank |
|
| American Express |
|
| Citibank |
|
| Standard Chartered Bank |
|
Top 7 Credit Cards for Tax Payments
1 – HDFC bank business card
HDFC Bank offers business credit cards that can be used to conveniently pay your Goods and Services Tax (GST) online. Here are the major offers provided by the bank
| Feature | BizBlack | BizPower | BizGrow |
| Annual Fee | ₹10,000 + GST | ₹2,500 | ₹1,500 |
| Reward Points | 5X accelerated reward points | 3X accelerated reward points | 2X accelerated reward points |
| Airport Lounge Access | Unlimited domestic and international | Domestic airport lounges | Domestic airport lounges |
| Fuel Surcharge Waiver | 100% waiver on fuel surcharge | 100% waiver on fuel surcharge | 100% waiver on fuel surcharge |
| Other Benefits | Complimentary hotel stays, travel insurance,
concierge services |
Complimentary hotel stays, travel insurance | Travel Insurance |
2 – SBI Credit Cards
When selecting the best SBI credit card for paying taxes, you’ll want to consider features such as reward points, cashback, or benefits specifically related to expense management. As of my last update, here are some of the SBI credit cards that could be beneficial for tax payments.
| Feature | SBI Vistara Credit Card | SBI Prime Credit Card | SBI SimplyCLICK Credit Card |
| Annual Fee | ₹3,000 | ₹4,500 | ₹499 |
| Reward Points | 3 Vistara points per ₹100 spent | 3 Vistara points per ₹100 spent | 3 Vistara points per ₹100 spent |
| Other Benefits | Lounge access, fuel surcharge waiver, travel insurance | Lounge access, fuel surcharge waiver, travel insurance | Fuel surcharge waiver, travel insurance |
3 – ICICI Credit Cards
ICICI Bank offers several credit cards that can be used for tax payments. These cards often provide benefits such as cashback, reward points, and complimentary airport lounge access.
| Feature | ICICI Bank Titanium Credit Card | ICICI Bank Coral Credit Card |
| Annual Fee | Varies | Varies |
| Reward Points (Fuel) | 0 | 2 |
| Reward Points (Other) | 2 per ₹100 spent | 2 per ₹100 spent (except fuel) |
| Reward Points (Bonus) | N/A | 2000 points on spending ₹2,00,000 & 1000 points for every additional ₹1,00,000 |
| Fuel Surcharge Waiver | Up to ₹4,000 at HPCL Pumps | N/A |
4 – Axis Bank:
Axis Bank Privilege Credit Card: Known for its cashback offers and travel benefits, this card can be used for tax payments.
| Feature | Axis Bank Privilege Credit Card | Axis Bank Enrich Credit Card | Axis Bank My Choice Credit Card |
| Annual Fee | ₹1,500 | ₹1,500 | ₹500 |
| Welcome Bonus | ₹5,000 travel or shopping voucher | ₹5,000 travel or shopping voucher | ₹1,000 welcome bonus |
| Reward Points | 10 points per ₹200 spent | 3 points per ₹100 spent | 1 point per ₹100 spent |
| Other Benefits | Airport lounge access, travel insurance, dining discounts | Travel-focused benefits, airport lounge access | Basic benefits, fuel surcharge waiver |
5 – American Express:
American Express Platinum Credit Card brings to you lots of travel benefits and rewards, this card is suitable for tax payments.
| Feature | American Express® Platinum Card | American Express® Gold Card | American Express® Green Card |
| Annual Fee | ₹60,000 plus taxes | ₹1,000 (First Year), ₹4,500 (Second Year onwards) | ₹1,000 (First Year), ₹4,500 (Second Year onwards) |
| Welcome Offer | ₹45,000 stay vouchers from Taj, SeleQtions and Vivanta | 4,000 Membership Rewards® Points | 40,000 Membership Rewards® Points after spending ₹2,50,000 |
| APR | N/A | N/A | 21.24% to 29.24% variable APR |
| Reward Earn Rate | N/A | N/A | 1 Membership Rewards Point for every ₹50 spent |
6 – Citibank:
This card offers reward points that can be redeemed for various benefits, including cashback and travel rewards.
| Feature | Citi Rewards+® Card | Citi Custom Cash® Card | Citi PremierMiles® Card |
| Annual Fee | No annual fee | No annual fee | ₹3,000 |
| Welcome Bonus | Up to 20,000 ThankYou® Points | 10,000 ThankYou® Points | 10,000 ThankYou® Points |
| Reward Points | 2 ThankYou® Points per
$1 spent (up to $6,000) |
5% cashback on one category
(up to $500) |
1.8 ThankYou® Points
per $1 spent |
| Travel Benefits | Airport lounge access, travel insurance | None | Airport lounge access, travel insurance |
| Redemption Options | Travel, shopping, gift cards | Cashback | Travel rewards (flights, hotels, etc.) |
7: Standard Chartered Bank:
This card provides a range of benefits, including travel insurance and lounge access.
| Feature | Standard Chartered Priority CC | Standard Chartered Mandiri CC | Standard Chartered Rewards+ CC |
| Annual Fee | Varies based on card variant | Varies based on card variant | Varies based on card variant |
| Welcome Bonus | May offer welcome offers or bonuses | May offer welcome offers or bonuses | May offer welcome offers or bonuses |
| Reward Points | Earn reward points for spending | Earn reward points for spending | Earn reward points for spending |
| Other Benefits | Lounge access, travel insurance, complimentary hotel stays. | May offer specific benefits tailored to Indonesia | May offer a range of benefits |
| Note: It’s always recommended to check the latest updates on the Income Tax Department’s website or consult with a tax professional to ensure there are no changes in the specific rules or procedures. |
Tips for Using Credit Cards for Tax Payments
Using credit cards to pay taxes can be a smart way to earn rewards and manage large payments effectively. However, to make the most out of this strategy, it’s important to be mindful of interest rates and repayment plans. Here are some key tips for using credit cards for tax payments:
Rewards: Choose a credit card that offers high rewards or cashback on government or utility payments to get the most value from your tax payment.
Welcome Bonuses: Consider using a new credit card to meet the spending requirement for a welcome bonus, especially for large tax payments.
Pay the Balance in Full: To avoid interest, always pay your credit card balance in full by the due date, ensuring the rewards outweigh any potential costs.
Consider 0% APR Cards: If you can’t pay the balance immediately, use a card with 0% APR to spread payments over time without incurring interest.
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Frequently Asked Questions
Q. Are there credit cards that offer rewards for tax payments?
A. Yes, several credit cards in India offer rewards for tax payments. These rewards can include cashback, reward points, or complimentary flight tickets.
Q. Can I earn points or cash back by using a credit card to pay taxes?
A. Many credit cards provide rewards or cashback on tax payments, allowing you to earn points or cash back that can be redeemed for various benefits.
Q. Which credit card has the lowest fees for tax payments?
A. When using a credit card for tax payments, compare cards for lower fees like annual fees or transaction charges.
Q. Are there 0% APR credit cards for paying taxes?
A. Some credit cards offer 0% APR for a limited period, which can be beneficial if you need time to pay off your tax liability. However, interest may be charged after the promotional period ends.
Q. Can I use a business credit card to pay my taxes?
A. Yes, you can generally use a business credit card to pay your business taxes. However, ensure that the card is authorized for tax payments.
Q. Do credit card companies offer bonuses for tax payments?
A. Check if your card issuer offers bonuses for tax payments.
Q. How do credit card tax payment fees compare across providers?
A. Using a credit card to pay taxes is usually fee-free, but some cards may have additional charges, so compare fees from different providers.
Q. What credit cards offer payment plans for taxes?
A. Credit cards may not have tax payment plans, but you can use them for installment payments, with possible interest accumulation.
Q. Is it worth using a credit card to pay taxes for the rewards?
A. When deciding on using a credit card for tax payments, consider rewards, fees, and benefits offered to maximize benefits.
