TDS

How to Pay TDS (Tax Deducted Source) By Credit Card?

In this article, we have to mention whether TDS can be paid through credit cards. Then mention that it is worth paying TDS via credit card. We have to mention the Tax benefits of Paying Income Tax through a Credit Card. Along with a complete step-wise process to pay through credit card.

The Government of India has been actively taking steps to curb the generation of black money in the economy. Starting from policy-level initiatives to robust administrative frameworks, the Indian Government has been taking all the possible measures to seize all the black money from the country. Hence, to eliminate all the black money and encourage non-cash transactions, the Government of India has come up with a new initiative of paying income tax or Tax Deducted Source (TDS) through a credit card.

How to Pay TDS (Tax Deducted Source) By Credit Card?:Can Credit Cards Pay TDS/ Income Tax?

Yes, paying TDS or income tax through a credit card is now possible. The Indian Government has announced several tax benefits if an individual pays TDS or income tax using a credit card. With the help of these non-cash transactions, the processing speed of the respective transaction will increase. As a result, the accounting process will be simple and precise. Hence, accessing the transaction history of every individual will become extremely easier.

Not only that, it will discourage tax avoidance among the people. Hence, it will result in the reduction of the flow of counterfeit or illegal currency. The overall process of paying the taxes through online mode will increase the presence of the individual in the entire financial system of the country. The payment of TDS or income taxes through credit cards is extremely simple and convenient for every individual.

Benefits of Paying TDS/ Income Tax by Credit Card

Non-cash transactions always come with a number of advantages. Similarly, paying TDS or income tax using a credit card also has a lot of advantages. 

Some of them are discussed below:

  • Making an online tax payment using a credit card will help the individual in filing a challan online. As a result, the individual will be able to acknowledge the remittance instantly.
  • The online challan comes with a Corporate Identity Number (CIN). It can be downloaded or printed anytime for future references and record purposes.
  • Credit cardholders enjoy a 1% to 2% VAT reduction on cashless transactions.
  • With this method, individuals can remit taxes from anywhere (only in case of the availability of a desktop).
  • When an individual pays taxes using a credit card, they will be able to avail of zero transaction charges at gas agencies, petrol pumps, or in case of railway tickets.
  • When an individual uses a credit card to pay their utility bills, they will receive tax rebates for the respective transaction.
  • The Indian Government has also announced an extra rebate if an individual has made up to 50% of their transactions through the online/ cashless modes.
  • For better adaptability and to encourage credit cards, the Indian Government has reduced the Merchant Discount Rate (MDR). MDR is a fee that the banks usually charge for using a credit card or debit card.
  • For paying income tax or TDS through online mode, the Government of India has set up an integrated payment gateway known as ‘PayGov India’. The option of using a credit card is also available at PayGov India. This method eliminates all the barriers and simplifies the tax payment process.
  • Suppose an individual pays TDS or income tax via credit card. In that case, both the Indian Government and the individual will have accurate transaction history and records of the respective payments.

A step-by-step guide to paying TDS through a credit card

  • First of all, go to the official NSDL-TIN website.
  • Sign up or log in to the website.
  • The next step is to click on the ‘e-payment: Pay Taxes Online’ tab.
  • Select the Challan Application Number under the TDS/ TCS’ tab.
  • The next step is to verify your PAN and TAN.
  • Once the verification is complete, the individual must fill in all the challan details (tax deduction number, tax applicable, assessment year, address, contact details, type, mode, and nature of payment).
  • Remember, you only have 30 minutes to fill in all the required details.
  • After successfully submitting all the required data, a confirmation screen will appear.
  • You can now click on ‘submit to the bank’ and pay your taxes by logging in to your internet banking.
  • After successful payment, a challan counterfoil is generated as proof of your online tax payment.

Filing TDS on the GST portal

As per the Good and Service Tax (GST), certain people must deduct TDS while making payments to the suppliers. The deduction of TDS is to be at the rate of 2% on payments where the total value of supply for an individual contract exceeds ₹2,50,000. In case the location of the supplier is different from the State of the registration of the recipient, no TDS deduction is required.

TDS: https://www.incometax.gov.in/iec/foportal/ under the GST portal is filled under the form GSTR -7. The steps to do the same are similar to that of the TDS/ income tax.

  • Visit the official website of the GST portal and log in with the website.
  • Select the financial year and return the filing period.
  • Fill in the required details, and then return to the TDS page.
  • Again fill details and make the payment using your credit card.
  • A message about the successful payment will be displayed on the screen.

In conclusion

Because of the increasing corruption and illegal transactions, the Government of India has been taking various initiatives to encourage the use of cashless transactions in the country. To eliminate all these illegal transactions and keep a historical record of all the available transactions, the Government has announced many benefits of using a cashless mode of payment for all the possible transactions.

Similar is in the case of online tax payments. The Indian Government has proposed many benefits and rebates by paying taxes via a credit card. This will encourage the citizens to pay income tax or TDS on time. Credit cards also save a lot of time for individuals. Hence, every individual should switch to using online payment modes and promote the objective of the Government.

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