Soon, you may be able to pay income tax through credit cards, UPI and mobile wallets

So far, e-paying of taxes has been limited to only net banking and the debit cards of a handful of banks.
Soon, you may be able to pay income tax through credit cards, UPI and mobile wallets
Soon, you may be able to pay income tax through credit cards, UPI and mobile wallets
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The government of India is expanding the ways in which individuals can remit their personal income tax. You may now be allowed to pay income tax through your mobile wallet, any of the digital payment apps, using the Unified Payments Interface (UPI) as the platform or even your credit cards. This has been disclosed by Revenue Secretary, Ajay Bhushan Pandey, as per a report in Business Standard. The government is considering these payment options to be added to the existing ones and a decision may be made soon.

There was a time when you had to stand in a queue in some bank or at the Income Tax office with your cheque to pay income tax. Then the government allowed you to pay through net banking and added debit cards issued by banks to make online payments. This facility too, was limited to only debit cards of six banks: Canara Bank, HDFC Bank, ICICI Bank, Punjab National Bank, Indian Bank and State Bank of India.

It might prove useful to people making payment of income tax in smaller amounts. Those having only income from salary may not have any need since the tax is deducted by their employers and remitted directly. It would be the individuals with additional income or small business owners who may have taxable income.

It is possible the government wants to encourage UPI, which is run by the National Payments Corporation of India (NPCI). UPI has reportedly crossed one billion transactions in the month of October. The top digital payments apps, such as Google Pay and PhonePe route payments on their platforms through UPI. Amazon Pay is also tied to UPI. There are moves to take the facility overseas as well.

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