Considering the millions of taxpayers across the country of India, NPCI has enhanced the transaction limit on tax payments through UPI. Now, taxpayers will be allowed to use UPI to pay up to ₹5 lakh which makes it easier to manage large amounts of transactions. The idea is to encourage and make it easier to make larger payments by Unified Payment Interface (UPI), primarily for taxes.
As per the circular of NPCI dated August 24, UPI has emerged as one of the most preferred modes of payment in the country. Due to this reason, NPCI realized that there was a need to expand the transaction threshold for certain sectors such as taxes. Hence, to pay taxes to the concerned department, the per-transaction value has now been increased to ₹5 lakh for such entities. This decision comes after the Reserve Bank of India (RBI) announced the limit increase on August 8, 2024, to raise it from ₹1 lakh to ₹5 lakh.
From September 16th, the changed limit will be for tax purposes and other segments such as hospitals, educational institutions, IPOs, and RBI’s retail direct schemes. However, they must be done through genuine merchants, and the user must confirm that both the bank and the UPI app support these new limits.
Furthermore, NPCI has asked every bank, payments system participant, and UPI app to integrate this higher transaction threshold by September 15, 2024. Moreover, they must adhere to the stringent Merchant Category Code (MCC) 9311, particularly on tax payments, and transition easily to the next higher limit across various fields.
All in all, paying taxes is just a piece of cake now, with the increased limit you can now pay taxes up to Rs. 5 lakh from sitting on your sofa.
UPI now allows payments up to ₹5 lakh for taxes, making larger transactions easier and more convenient for taxpayers. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
