Very Soon, You Can Pay Income Tax Via UPI, Mobile Wallets, Credit/Debit Card!
Income Tax Department and Govt of India is collaborating to make the process of paying income tax easier, and seamless.
Ushering a new wave of reforms for income tax payees, Govt will soon allow them to pay their income tax using mobile wallets, UPI and even just swipe using credit card or debit card of any bank.
Right now, income tax can only be paid via netbanking and debit cards of these 6 banks: Canara Bank, HDFC Bank, ICICI Bank, Indian Bank, Punjab National Bank (PNB) and State Bank of India (SBI).
New Reform For Paying Income Tax: The Digital Way
As far as UPI mode of paying income tax goes, Revenue Secretary Ajay Bhushan Pandey has confirmed this development.
Without stating a time frame, he said, “We are working on this. Today you can pay only through netbanking and debit cards. We would definitely like to use UPI. This may be allowed as soon as possible,”
UPI is managed and run by NPCI, and in case an arrangement for paying income tax via UPI is indeed made, then Finance Ministry and NPCI will have to collaborate, and work together.
Besides, once the linkage of UPI mode of payment and income tax is done, then it will become very easy for the Govt. to track the income tax generated, and find out who are not paying the tax.
Income Tax Collection Goes Down In October
Newer modes of making payment for income tax is now picking up steam, since Govt is concerned over low collection of taxes.
If we talk about GST, then the collection for October 2019 was below Rs 1 lakh crore at Rs 95,380 crore, which is not a good news.
Although this collection of GST is more than September, 2019, but compared to October 2018, it is less by 5.29%. In October, 2018, GST collection was Rs Rs 1,00,710 crore
It will be interesting to observe how Govt. is able to pull up income tax collection, and whether new digital modes of payments, such as UPI and eWallets will make any difference.
We will keep you updated, as more details come in.