Want to Pay Income Tax Using Your Credit Card? Step-By-Step Guide, Best Credit Cards, and More!

Summary: 

• Income tax can be paid online through the Income Tax Department’s “e-Pay Tax” facility. 

• It allows payment through credit cards using authorised payment gateways. 

• Credit card payments may let you earn reward points, cashback, or reach milestone spending targets. 

• Taxpayers can also receive an interest-free credit period of around 40–45 days. 

• However, such payments usually involve a credit card surcharge between 0.70% to 1% + 18% GST. 

• In addition, if the card bill is not paid within the due date, the outstanding amount may attract high interest charges. 

• Credit cards for income tax payment can be explored and applied directly on the airpay money app 

There are several ways to pay income tax online. And one of them is payment through a credit card. Many taxpayers consider this option, as it allows them to earn reward points or reach spending milestones.  

In addition, credit card payments provide an interest-free credit period of around 40–45 days, during which the amount is not immediately debited from your bank account. 

But how to pay income tax using credit cards? Also, what are the best credit cards for this purpose? 

This article explains the step-by-step process of making an income tax payment using a credit card (through the Income Tax Department portal). 

You will also know about some of the best credit cards for income tax payment available on the airpay money app. 

How to Pay Income Tax Online Using a Credit Card? 

The Income Tax Department provides an online facility called “e-Pay Tax” on its official portal. This service allows taxpayers to make income tax payments without visiting a bank branch.  

You can pay using net banking, debit card, RTGS/NEFT, UPI, or a credit card through the “payment gateway” option. For a better understanding, let’s check out the step-by-step process to pay Income Tax online: 

Step 1: Visit the Income Tax Portal 

Open the official Income Tax website - https://www.incometax.gov.in/iec/foportal/ and select “e-Pay Tax”. This option opens the online tax payment system. 

Step 2: Enter PAN and Finish OTP Verification 

You will be asked to enter: 

• Your PAN (Permanent Account Number) 

• Your mobile number 

Next, an OTP will be sent to your mobile number. Enter the OTP and click “Continue”. 

Step 3: Confirm Taxpayer Details 

The system will display: 

• PAN/TAN number 

• Name of taxpayer 

Check whether the details are correct and click Continue. 

Step 4: Choose the Type of Payment 

You must now select the category of payment. Options include: 

• Income Tax 

• Equalisation Levy / STT / CTT 

• Fee or Other Payments 

Select “Income Tax” and click Proceed. 

Step 5: Select Assessment Year and Payment Type 

Next, choose “Assessment Year” and the type of payment, such as: 

• Self-Assessment Tax 

• Advance Tax 

• Demand Payment 

• Regular Assessment Tax 

After selection, click “Continue”. 

Step 6: Enter Tax Amount 

Fill in the payment details: 

• Tax amount 

• Surcharge (if applicable) 

• Health and Education Cess 

• Interest or penalty (if applicable) 

The system may “auto-calculate” totals once values are entered. Click Continue after entering the amount. 

Step 7: Choose Payment Method 

A new screen will show payment options such as: 

• Net banking 

• Debit card 

• Pay at the bank counter 

• RTGS/NEFT 

• Payment Gateway 

To pay using a credit card, select “Payment Gateway.” You will be redirected to an authorised payment processor. Here, choose Credit Card as the payment mode. 

Step 8: Verify Challan Details 

Before final payment, the system shows a challan summary containing: 

• PAN 

• Assessment Year 

• Payment type 

• Amount payable 

Review all the details and then proceed to pay. Enter your credit card details and make the income tax payment. Once successful, a challan receipt will appear, which acts as the proof of payment. 

Credit Cards for Income Tax Payment Available on airpay money 

Some of the credit cards for income tax payment can be explored and applied directly on the airpay money app. Here, you can check out multiple options offered by leading issuers like HDFC Bank and Yes Bank. Also, you can compare features, rewards, joining fees, and more.  

Want to know some cards? Below are three credit cards you may consider for your next income tax payment: 

Conclusion 

So now you know how to make an income tax payment online (using the Income Tax Department’s e-Pay Tax facility) and are aware of some of the best credit cards for this purpose.  

By using credit cards for income tax payment, you can earn reward points, receive cashback benefits, and achieve “milestone spending” targets. In addition, you may also get an interest-free credit period of around 40–45 days, since the amount is not immediately debited from your bank account.  

However, realise that such payments usually involve a credit card surcharge, which ranges between 0.70% and 1% plus 18% GST.  

Want to do tax planning for FY 2026-27? 

Visit the airpay money app and get tailored suggestions on how to reduce your taxes. We are a 360-degree financial wellness platform trusted by 1,00,000+ users. Download the airpay money mobile application today and start your tax planning for free.