Now pay convenience charges, GST on income tax payments if you choose this payment mode
Next time if you pay your income tax via the new income tax portal website, then be aware that you will be liable to pay for convenience charges and Goods and Services Tax (GST) for using certain payment methods. For example, you can get charged Rs 300 for paying income tax of Rs 30,000 using some of the payment modes.
The convenience charges and GST will be applicable if income tax is paid using the ‘payment gateway’ on the e-filing income tax website. If you pay using ‘Payment Gateway’ -which is one of the five payment options as shown below then transaction charges will be applicable for certain modes of payment.
When you click on ‘transaction charges’ then the following table shows up. The table specifies the charges applicable on certain modes of payment done via the payment gateway.
|
Mode of Payment |
Transaction charges |
| Net banking |
Convenience fee |
|
HDFC Bank: Rs 12 |
|
|
ICICI Bank: Rs 9 |
|
|
SBI Bank: Rs 7 |
|
|
Axis Bank: Rs 7 |
|
|
Other banks (including Federal Bank): Rs 5 |
|
|
Plus, GST @ 18% |
|
|
Credit card |
0.85% + GST @ 18% |
| Debit card |
NIL |
| UPI |
NIL |
Source: Income tax e-filing portal on 3.9.2022
To explain how much extra you will be paying on the income tax, here is an example. Suppose you have to pay income tax of Rs 30,000 and you opt to pay it using credit card. A convenience fee of 0.85% will be levied on Rs 30,000. The amount will be Rs 255. The GST will be applicable to convenience fee (Rs 255) as well, i.e., Rs 45.9. Thus, an individual paying income tax via credit card will end up paying Rs 30,000+ Rs 255+ Rs 45.9 = 30,300.9, almost Rs 301 extra. The charges will increase in proportion to the increase in income tax paid using the credit card. However, a flat charge will be applicable on the payment gateway method if income tax is paid using the Net banking option along with GST.
As per the e-filing income tax portal, if an individual pays taxes using the Net Banking option of the authorised banks, then no transaction charge/fee is applicable. However, currently, the authorised banks are only three–Federal Bank, Kotak Mahindra Bank and Bank of India. Thus, if an individual pays income tax using net banking option of these banks, then no transaction fee will be applicable.
Apart from Net banking, the e-filing income tax portal allows an individual to pay income tax using NEFT, RTGS and over-the-counter (physically at a bank branch) options as well. Making payment via Debit card is yet to be enabled on the e-filing portal.
Paying at the bank counter via cheque does not normally attract charges. NEFT/RTGS are applicable as per the bank.
