Income Tax Notice on UPI?

[Thor]

I have multiple bank accounts and multiple UPI apps so in order to get cashbacks, I generally transfer the money from my one account to another account to comply with cashback offers. Sometimes, I make monthly transactions of even more than 50k but it is just transfer from my own account to my own another account.

Is there any possibility that I can receive income tax notice if this transactions go beyond 10 lakh or 20 lakh on annual basis?

 

[arjungoyal12]

If you’re just transferring money between your own bank accounts, even through multiple UPI apps, then there’s no income tax issue. The Income Tax Department only cares about income, not movement of your own existing money. So if the source of funds is already taxed or declared (like your salary or savings), then these transfers won’t trigger any notice.

Now, where people get into trouble is when:

• The account receives money from other people frequently, especially large sums.
• There’s no clear source of income (like salary, business, or investment returns).
• Or if cash deposits or suspicious patterns are detected by the bank (like circular transfers with many accounts).

Even if your total transfer volume goes beyond ₹10–20 lakh in a year, as long as it’s your own money and you can explain the trail (same name accounts), it’s fine. The system might flag it for review internally, but it usually doesn’t result in a notice, you just need to keep records in case they ever ask.

If you’re using these transfers mainly for cashback offers, maybe just make sure:

• The accounts are all clearly in your own name.
• You’re not routing other people’s money.
• You can show the transactions are self-to-self (same PAN).

So overall, you’re safe, just keep things transparent and documented.