New Delhi: India’s digital journey has seen a major boost with the rise of UPI. It has made transferring of money simpler than ever. Whether it’s splitting a bill, paying for groceries, or transferring funds to family, UPI allows users to complete transactions in seconds using just a smartphone. It eliminates the need for cash or cards, offers secure and traceable payments and comes with zero hidden charges.
Know the Tax Rules for UPI Transactions
If you’re using UPI or digital wallets in India, it’s important to know that these transactions can be taxable—just like earnings from mutual funds or fixed deposits. Under section 56(2) of the Income Tax Act, money received through UPI or e-wallets can be treated as income from other sources. That means you must report such transactions while filing your Income Tax Return (ITR). The Income Tax Department keeps a close watch on digital payments, so make sure you’re disclosing all your income, including anything received through UPI or wallets, to stay compliant and avoid trouble later.
No Extra Charges for Using UPI
One of the biggest advantages of using UPI is that it doesn’t come with any extra fees. You can send or receive money without worrying about hidden charges. All you need is a UPI ID or a PIN to get started, which makes transactions quick and easy—no need to enter your details every time you pay.
