In a statement, NPCI has said that the increased limit will be applicable to entities under categories aligned to tax payments to Rs 5 lakh. After the increased limit comes into effect, the UPI limit for government e-market place, travel and business/merchant-related transactions will be Rs 5 lakh. Income Tax Implications of UPI Transactions and E-Wallets In the modern era of digital payments, the introduction of Unified Payments Interface ( UPI ) in India has marked a significant leap towards a cashless economy. UPI enables users to utilize their smartphones as virtual debit cards, eliminating the need for physical cash or cards for transactions . This system, introduced in 2016, allows individuals to link multiple bank accounts to a single smartphone app and conduct fund transfers ... The Income Tax Act imposes tax on e-wallet tranactions on the transfer on an amount exceeding certain limit . Find out the Income tax on UPI /eWallet tranactions. Understand income tax on UPI transactions in India for 2025. Get clarity on rules, limits , exemptions, and reporting requirements to avoid penalties & stay compliant.
