Doubts : Advance Tax Using Credit Card

Axis and HDFC dont give you reward points for government transactions this year onwards. So ICICI is the only option. 0.8% fee so if you get 1% cashback, you're still ahead.

sharpen wrote:

Axis and HDFC dont give you reward points for government transactions this year onwards. So ICICI is the only option. 0.8% fee so if you get 1% cashback, you're still ahead.

Shown upfront when you select payment portal. Canara bank was the lowest in April.

akki.akki wrote:
charges are shown upfront or added later like fuel payments ?

Added later in statement for me on axis cc

sharpen wrote:

Shown upfront when you select payment portal. Canara bank was the lowest in April.

legend101 wrote:
wasnt HDFC charging 0 fee this year?

No, never. I paid via their portal and was charged the fee as stated during checkout but in a separate transaction 3 days later.

sharpen wrote:

Shown upfront when you select payment portal. Canara bank was the lowest in April.

Kotak and HDFC are both 0.8% + GST 18% = ~0.944%

canara has increased rates to 0.9%+GST now

You can check rates on the payments page before proceeding.

@akki.akki there's no problems paying taxes via CC. However, if it's a big payment, it may increase your annual spend beyond threshold limits of 10L and then the card spends will reflect in AIS. This is not a problem unless your income declared is less than your spends - you may have to explain the taxan souce of income.

Damn! Thanks for reminding. I was under the wrong impression of Mid Oct!

Can we pay any other person advance tax using own cc?

Gauravmittal49589 wrote:

Can we pay any other person advance tax using own cc?

Gauravmittal49589 wrote:

Can we pay any other person advance tax using own cc?

You can, it doesn't matter honestly. But it's preferable that you can justify it. For friends and family you will probably be able to, for strangers, not so easily unless you can prove you're a money lender and are following regulations for money lenders

You should be able to explain what you're doing and why. Your expenses and income and bank balance should tally with what story you come up with.

If it's a small amount it won't matter, but large tax payments may require your card issuer to upload transaction data to AIS when what I've stated above comes into picture

Alex15 wrote:

Kotak and HDFC are both 0.8% + GST 18% = ~0.944%

canara has increased rates to 0.9%+GST now

You can check rates on the payments page before proceeding.

@akki.akki there's no problems paying taxes via CC. However, if it's a big payment, it may increase your annual spend beyond threshold limits of 10L and then the card spends will reflect in AIS. This is not a problem unless your income declared is less than your spends - you may have to explain the taxan souce of income.

InvestPotato wrote:
Is the threshold limit per card, per bank or overall across all the banks?

It's on a per Bank basis I believe. More than one card with a bank will add up irrespective of you having separate or joint limits.

In the future you should assume govt will wisen up and get a system to track across banks, so be prepared for it

Alex15 wrote:

It's on a per Bank basis I believe. More than one card with a bank will add up irrespective of you having separate or joint limits.

In the future you should assume govt will wisen up and get a system to track across banks, so be prepared for it

@Seinfeld

Usually though, in case of govt payments like tax it is clearly mentioned on payment gateway itself if there are any extra charges.

You can skip paying the Advance Tax, they will charge only 1% simple interest, who gives loans at that cheap rate 😜

guest_999 wrote:
Nit in future, it is already here. Try spending more than 10 lakh+ across multiple banks cards in a year while not filing itr/filing 2 lakh itr & good chance you will get a notice in next 2-3 years.
@investpotato

sharpen wrote:

Axis and HDFC dont give you reward points for government transactions this year onwards. So ICICI is the only option. 0.8% fee so if you get 1% cashback, you're still ahead.

InvestPotato wrote:


Though I file ITR with a good amount. I don't want to explain the authorities

akki.akki wrote:
charges are shown upfront or added later like fuel payments ?

I have been using Kotak PG lately as they clearly show charges beforehand and I believe most others pg in the list do too. Just check the transaction charges list while selecting the payment gateway. However I have heard some users complaining about HDFC pg adding charges latter on, so it would be wise to stay away from it even if you have a hdfc cc. + @guest_999

Previously Canara bank was charging lowest, no longer so.
and No extra charges are added latter on.
For genuine self advance tax payments using own cc will not cause any issues. However please do not pay other’s adv tax.

As per your credit cards, sadly none of them will give any reward points on government spends. Axis and hdfc have stopped rewarding on government spends and Axis have even excluded it for milestones on Magnus. Even icici has been recently reported to not give the rewards on amazon pay cc for adv tax. I guess you should use the card which might take you closer to any milestone (millennia) or payment waiver (fk axis).  Since you are short of money you are just buying some time. The charges should be negated while you pay the cc bill using hdfc platinum / cheq or any other  means you know of.

Rajkotian wrote:

You can skip paying the Advance Tax, they will charge only 1% simple interest, who gives loans at that cheap rate 😜

Per month

Seinfeld wrote:

I have been using Kotak PG lately as they clearly show charges beforehand and I believe most others pg in the list do too. Just check the transaction charges list while selecting the payment gateway. However I have heard some users complaining about HDFC pg adding charges latter on, so it would be wise to stay away from it even if you have a hdfc cc. + @guest_999

Previously Canara bank was charging lowest, no longer so.
and No extra charges are added latter on.
For genuine self advance tax payments using own cc will not cause any issues. However please do not pay other’s adv tax.

As per your credit cards, sadly none of them will give any reward points on government spends. Axis and hdfc have stopped rewarding on government spends and Axis have even excluded it for milestones on Magnus. Even icici has been recently reported to not give the rewards on amazon pay cc for adv tax. I guess you should use the card which might take you closer to any milestone (millennia) or payment waiver (fk axis).  Since you are short of money you are just buying some time. The charges should be negated while you pay the cc bill using hdfc platinum / cheq or any other  means you know of.

Yes hdfc was showing 0 then in statement had charges.

mojo_jojo123 wrote:
which ICICI card is giving 1% ? Amazon pay ?

Yes apay 1%

Sachin9811 wrote:

Yes apay 1%

You paid and saw reflection in statement recently? Have been reading negative about 1% for icici amazon pay cc for users expecting and receiving statement this month.

Seinfeld wrote:

You paid and saw reflection in statement recently? Have been reading negative about 1% for icici amazon pay cc for users expecting and receiving statement this month.

I did long back, so dont know if changed. Use idfc cc now. 

Apay ICICI seems to be blocking txns with random security reasons, gets unblocked only when calling them

Sachin9811 wrote:

Yes hdfc was showing 0 then in statement had charges.

Sachin9811 wrote:

Per month

Rajkotian wrote:
Watch this for the detailed explanation:

Sorry, don't have that much time.