New tax on UPI payments: Transactions above Rs 2000 to face hefty charges from 2025
A viral post claims UPI transactions above Rs 2000 will be taxed from April 2025. This article clarifies the facts about the new tax rules for online payments in India.
From April 2025, UPI transactions exceeding Rs 2000 will be taxed. Consumers will have to pay a substantial tax to the government.
With the advent of UPI, most people transact online. But will transactions above Rs 2000 be taxed now? A recent viral social media post claims a 1.1% tax on UPI transactions from April.
A netizen on X (formerly Twitter) claims transactions above Rs 2000 via Google Pay, PhonePe, or UPI will be taxed from April 1. This means a Rs 110 tax on a Rs 10,000 payment.
This news was later confirmed as fake. The tax applies only to PPI merchant transactions above Rs 2000. The tax applies to card and wallet payments. The National Payments Corporation of India clarified it applies only to PPI merchant transactions.
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