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Business News/ Money / Paying high taxes? Here's how you can save up to 16% by paying with these credit cards

Paying high taxes? Here's how you can save up to 16% by paying with these credit cards

1 min read 13 Jul 2024, 02:26 PM IST

With the income tax paying season upon us, every taxpayer is busy figuring out the details of their tax filing. We bring you a simple and efficient way to save nearly 16% on your due tax amount. Read on to find out how

Tax payment has been among the favourite reward earning payment categories for most credit card holders. (Image: Pixabay)

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Every tax season brings with it a plethora of usually complicated tax calculations. Figuring out how much taxes to pay, and how many deductions you can claim can be a chore. But apart from that, you can also save some money by the means of how you pay your taxes.

This tax filing season, we bring to you a simple way of saving around 2-16.6% on your tax due. You can do that by paying your remaining tax due with a credit card.

For long, tax payment has been among the favourite reward earning payment categories for most credit card holders. It’s a non-discretionary expense, so you don’t have to spend extra, as is the case with shopping, to earn rewards. However, most banks have either completely removed or downgraded rewards on non-discretionary expenses, including tax payments.

HDFC Infinia, the most rewarding credit card in the premium category, stopped offering rewards on government spends in December 2022. Credit cards from Axis bank, which have been among the most sought-after cards in the past 2-3 years for their unmatchable high reward rates, were devalued of tax payments rewards in September 2023.

Also read: Income tax return filing: Requirements of disclosure of assets owned by you in ITR

Despite some of the high-rewarding credit cards exempted from offering rewards on tax payments, there are still some options left that can get you a sweet deal.

Mint has listed down three of the best rewarding cards for tax payments—Standard Chartered Ultimate, HDFC BizBlack and Standard Chartered Smart.

Apart from their reward rates, we also bring you the details of their other features, fees, the avenues where you can redeem the earned rewards, and the shortcomings of each of these cards that you need to keep in mind.

Also read: Income Tax Return: Why should you verify your ITR within 30 days of filing?

For instance, the HDFC BizBlack is the highest rewarding credit card currently that offers a reward rate of 16.6% on tax payments under certain conditions.

Take note that there are other credit cards that offer rewards on tax payments, but they are not as rewarding as the three listed below:

How can you save some money while paying your taxes? (Graphic: Mint)

Paying your taxes through some particular credit cards can earn you rewards of up to 16% of your total tax due. (Graphic: Mint)

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ABOUT THE AUTHOR

Shipra Singh

Shipra is part of Mint's personal finance team, covering tax, credit cards, insurance and investments. She has a keen interest in writing human centric features and deep dives on money trends that capture how people’s habits around saving, spending and wealth creation are evolving. Shipra hosts Monday episodes of Why Not Mint Money podcast. Before joining Mint in Sept 2021, she has worked as a finance journalist with Economic Times, Outlook and Entrepreneur India.