Under UPI Digital India, more than 70 percent of people in India nowadays transact with UPI. It is located that there is less crowd in banks. Nowadays transactions are being done through UPI and ATM. The digital payment system is becoming increasingly popular in India. The government will now tax UPI transactions to fill the treasury which will be implemented from 1 April 2025. However, it will apply to those who regularly use UPI.
Tax will be applicable on transactions
What will be the impact of this new rule made by the Central Government, tax will be applicable on which transactions, and how the customers will be affected by it. Also, we will also see what is the current status of the UPI payment system and how it can be kept safe.
Tax on UPI payment: Government’s new decision
The Modi government at the Center has announced that from 1 April 2025, UPI transactions will be taxed 1.1%. However, this transaction amount is more than 2,000. This decision will be mainly transacted through PPIS.
Digital transactions are increasing rapidly in India
Today, digital transactions in India have been caught by more digital transactions for the last decade. It has now become necessary to control the digital payment system. The Union Finance Minister said that “digital transactions are growing rapidly, now it has been ensured that proper tax is imposed on all transactions.”
UPI made 16.99 billion transactions
The situation today is that the UPI system has changed the method of financial transactions in India. This is not only convenient but also fast. In January 2025 last month, UPI has transacted 16.99 billion, while whose total value was 23.48 lakh crore. This number has increased considerably compared to the previous year.
Need to be careful
In today’s fraud, this new tax on UPI payment will definitely prove to be a big shock for customers. Although the government’s big purpose behind this is to increase tax revenue and control the digital payment system, but keeping in mind its effects, customers will now need to be more careful.
Pay attention to the amount and type of transaction
In increasing UPI transactions, customers should pay attention to the amount of their transactions and its type. So that they can avoid this new tax. At the same time, it should also be kept in mind that what kind of payment methods they are using. Explain that thus, this new rule will affect the digital payment system in our country and motivate customers to bring changes in their financial behavior.