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.
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.
Abhishek Soni, CEO, Tax2win.in – an ITR filing firm says, “The transaction charges are applicable if payment gateway method is used to make income tax payment on the new income tax portal. The payment gateway method is applicable for paying income tax using the Net banking of unauthorised banks, credit card and UPI. However, if the income tax is paid on the NSDL website then no transaction charges are applicable. The NSDL website allows an individual to pay income tax via the Net banking option without any charges. Whereas if e-filing portal is used to pay income tax via HDFC net banking, then convenience fee of Rs 12 with GST will be applicable.”
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.