You can now pay up to Rs 5 lakh in taxes using UPI, as the RBI has proposed to increase the UPI limit for tax payments from Rs 1 lakh to Rs 5 lakh.
The RBI Governor, Shaktikanta Das, mentioned that currently, the UPI payment limit is Rs 1 lakh, except for certain categories of payments with higher transaction limits. The RBI has decided to raise the UPI tax payment limit from Rs 1 lakh to Rs 5 lakh per transaction. This change aims to simplify the process of customers’ tax payments.
The current UPI limit set by NPCI for normal UPI payments is Rs 1 lakh. However, the UPI limit for specific categories of transactions such as capital market, collection, insurance, and foreign inward remittance is higher, with a cap of Rs 2 lakhs. Additionally, the limit for Initial Public Offering (IPO) and Retail Direct Scheme transactions is set at Rs 5 lakh per transaction.
Following the increase in the UPI limit, it will be easier for you to make tax payments. With UPI, you can make payments of up to Rs 5 lakh using just your phone. Unlike credit or debit card payments, UPI transactions require minimal information and can be completed within minutes, making tax payments more convenient.
