Can I pay income tax with credit card?

Yes, income tax can be paid using a credit card, but it usually comes with extra charges.

It works. It’s allowed. It’s just not the cheapest option.

How paying income tax by credit card works

Income tax is paid through the official portal of the Income Tax Department.

The department itself does not take card payments directly.

A payment gateway sits in between:

• The credit card pays the gateway
• The gateway transfers money to the tax department

That middle step is where fees appear.

What types of income tax can be paid by credit card

Credit cards are usually allowed for:

• Self-assessment tax
• Advance tax
• Regular income tax dues

Availability depends on the payment gateway selected on the portal.

Some gateways allow cards. Some don’t.

What extra charges apply

This is the important part.

Paying income tax with a credit card usually includes:

• Convenience fee (percentage-based)
• GST on the convenience fee

These charges are taken by the payment gateway, not the tax department.

Net banking usually has zero extra cost.

Why people still use credit cards for tax payments

Despite fees, some still choose cards.

Common reasons:

• Short-term cash flow support
• Near-deadline tax payment
• Reward points or milestone benefits

Timing pressure changes decisions.

Does paying income tax by credit card earn rewards?

Sometimes yes. Often no.

Many credit cards exclude government payments from:

• Reward points
• Cashback offers

This depends on card terms. Always check first.

Impact on credit card bill

Income tax paid by credit card becomes part of the card bill.

That means:

• Full amount is due on the bill
• Interest applies if not paid on time

Tax payment does not get special treatment here.

Late payment still hurts.

Things to check before using a credit card

Quick tip. Before choosing a card for tax payment, check:

• Convenience fee percentage
• Reward eligibility
• Credit limit availability
• Ability to repay full bill

Fees plus interest can quietly stack up.

Better option in most cases

For most people, net banking is simpler and cheaper.

Credit cards make sense only when:

• Cash flow is tight
• Deadline is close
• Full repayment is planned

Without a plan, it backfires.

FAQ

Is it legal to pay income tax using a credit card?

Yes, if the payment gateway allows it.

Are there extra charges?

Yes, convenience fees usually apply.

Is net banking better than credit card for tax payment?

Usually yes, due to zero fees.

In short

Income tax can be paid using a credit card.

Extra charges usually apply.

Net banking remains the cheaper route.

Still deciding which payment method fits best for a tax deadline?