What are the UPI limits for personal use in a financial year?

[ArinMandal]

Hello, my name is Arin, and I am new to this community. I have a significant concern regarding UPI transactions. I have conducted transactions exceeding 6.2 lakh through UPI on my savings account, some for credit card bills and others for general UPI transactions. Currently, I am between jobs and not paying taxes. Could you assist me in understanding how much I can transact with my savings account to avoid reaching the income tax notification limit?

 

[zacobite]

Hello, my name is Arin, and I am new to this community. I have a significant concern regarding UPI transactions. I have conducted transactions exceeding 6.2 lakh through UPI on my savings account, some for credit card bills and others for general UPI transactions. Currently, I am between jobs and not paying taxes. Could you assist me in understanding how much I can transact with my savings account to avoid reaching the income tax notification limit?

6L is a lot on upi and not normal for a general citizen... banks themselves nowadays block accounts as suspicious.... it doesn't have to be the tax dept.. so there is no limit as such.. just too many high value / same type / same merchant etx will flag off internal risk controls.. then. they will ask u to explain each transaction.

UPI is meant for small transactions and not big ones.. NEFT / IMPS are for the big ones.. once in a while is ok.
regular high value UPI means trouble

 

[Yahiya]

Hi Arin

Make sure each of the accounts have less than 10L deposits. Banks send reports to Income Tax departments regarding those bank accounts which are having deposit together in 10 lakhs under SFT reporting. So since you’re not crossed that nothing to worry.

But if there are any transactions that can be captured by AIS ( annual information statement) like dividend, sale of shares, TDS etc . The respective of the UPI transactions, you need to file the income tax.

 

[_rohitsoni]

Hey,
Don't worry bro there is no defined limit for UPI which is set by govt or IT dept. As long as you are spending what you've legally (after paying taxes) gained, govt. will not bother you. A very minute chance of getting a IT notice or getting a bank account blocked can be dealt with very easily by sending them the source of income.
Contradicting the fellow KF members, suppose you earn some 30-40 lakhs a year, then spending 6L is minuscule and banks will never question that.

Another misconception is that if we keep less than 10L deposit in each bank then IT dept or banks wont report it. First, IT dept has nothing to do with your number of bank accounts, if per PAN you have deposited a cash of more than 10L, then they might send a notice to explain (this is not the IT-raid wala notice, just a simple notice asking how you've gained this cash and where exactly have you mentioned it in your ITR. If its a genuine case, then it'll be dealt pretty easily. Second, again if you earn 30L then why will your bank or IT dept will have any problem with it.