Govt to Soon Implement Tax Payments via Credit Cards & UPI

As the Indian Government is enthusiastic about bringing in more and more digital modes for tax filing and payment, it may soon consider tax payment valid via credit card, Unified Payment Interface (UPI) or even prepaid wallet declared a government official. The government is determined to shift towards more digital modes of tax payment apart from debit cards and bank account transactions that are currently in use.

This step by the government is both way service as it is inclined towards giving facilities to the taxpayer who can now pay tax digitally via various online modes from the comforts of their homes and on the other hand, the government’s aim of digitizing every bit of tax filing and payment is turning into reality.

The option of paying income tax via credit card is a new wave in India but is already adopted by some of the developed nations says Amarpal S. Chadha partner EY India.
“Given the journey of digitalization of tax administration in India, extending the option of using a credit card for online payment of taxes Know about the Income-tax challan 280 form for online and offline payment of self-assessment on the official income tax department website., without additional charges, would definitely enhance the taxpayer experience and convenience.”

The nations like the UK, Canada and China have long ago adopted the policy of tax payment by credit card. Canada even initiated a pilot project in 2017 allowing all the resident taxpayers to pay tax using the Quick Response (QR) code that can be scanned at the time of payment.

With the emergence of this third party service, Canada is now able to grant more options to the dwellers who are unresourced with proper internet access and also those who stay away from the premises of financial institutions.

With the government stressing upon implementation of more and more online tax payment methods there are chances of timely tax compliances as taxpayers now can easily pay taxes. Simply introducing the provisions is not enough, therefore, the Income Tax Department PAN cards will now be issued online and instantly in India by the Income Tax Department. This is a good move towards digitalization of services by the Income Tax Department. is consistently active on social media with various tax-related tutorials as well as started the system of taxpayer’s grievance redressal on Twitter.

The report from the Tax Administration Reform Commission submitted to the government in 2014 says that tax Payment is one of the core reasons for interaction between taxpayers and tax officials.

Tax Administration around the world is giving the facility of electronic tax payment to individual taxpayers as well as business units on all types of taxes for making tax payment a quick and hassle-free accomplishment.

As stated by the experts, the cost involved in getting the tax payment digitized will reduce significantly if the tax system is made completely electronic.