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Shall I have to pay income tax for UPi Transaction?

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Everyone has some doubts in many aspects in terms of upi transaction. One the burning question is do we have to pay Income tax for Upi transaction?
 
     Now first off all we should about some basic things about upi. Then you can easily understand what is upi and your doubts will hopefully be cleared.

What is UPI?

        Upi is known as Unified Payments Interface. This is an revolutionary change in India. Using this you can transfer money very easily from anywhere in India and any time to another bank account. This doesn't matter if your bank and receiver bank is different.

        In Upi you need need to wait for Payments. Here you need not to add any beneficiary details to pay. The person you wanted to pay you have to just collect his or her upi id which us known as VPA (Virtual Payment Address). When you pay using this address the amount will be transferred immediately. This service was launched to grow India digitally. In an UPi id your all details have been stored that's why you need not to do anything. You just need to generate a id and mPin for your security.

What is the benefits of using UPi?
     Using this you can pay from anywhere and anytime and instantly your transfer will be successful. That's a great thing. If anyone in trouble and needs money you can just transfer in this way very easily.It will save your time as you can use it using your phone you need not to go to bank or anywhere .Now a days to promote this app many platforms are launching interesting offers regarding Upi. You will get cash backs also when you transfer using this.

Benefits for bank
  1. Universal Application for transaction
  2. Leveraging existing infrastructure
  3. Safer, Secured and Innovative
  4. Payment basis Single/ Unique Identifier
  5. Enable seamless merchant transactions

Benefits for end Customers:
  1. Round the clock availability
  2. Single Application for accessing different bank accounts
  3. Use of Virtual ID is more secure, no credential sharing
  4. Single click authentication
  5. Raise Complaint from Mobile App directly

Benefits for Merchants:
  1. Seamless fund collection from customers - single identifiers
  2. No risk of storing customer’s virtual address like in Cards
  3. Tap customers not having credit/debit cards.
  4. Suitable for e-Com & m-Com transaction
  5. Resolves the COD collection problem
  6. Single click 2FA facility to the customer - seamless Pull
  7. In-App Payments (IAP)


        Now come to the point do we have to pay income tax for UPI transaction?
   
         If you go to the NPCI's website then you will never find any data regarding this. No clear mention is there. If you go to Income tax service's official website then you also never find this. But they have mentioned that if you withdraw any cash of Rs 10 lakh per year or deposit Rs 10 lakh per year by cash then you need to pay income tax. But online transactions are not mentioned there. So it is too much doubtful. So better to limit your upi transaction. Unnecessarily don't use upi. But their is no confirmation again I say. You can check it if you know any income tax officer who can say you better.


Does Any extra charges apply on UPI?

     Yes some of the banks are providing free cost upi transaction. Where as some of them take charges for upi transactions. They have set limit. According to them first 30 transactions per month is free afyer this limit you have to pay according to their standard rate. Different banks have different rate of charges. So confirm with your bank do you need to pay any or not.

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