Lakhs of taxpayers in the country will be helped in paying taxes through UPI, The National Payments Corporation of India (NPCI) has increased the transaction limit. If you also use the Unified Payment Interface (UPI), then a big change is going to happen soon. The government had said in a circular that taxpayers can soon pay taxes up to Rs 5 lakh through UPI. Earlier this limit was very low. Lakhs of taxpayers will get great relief from this change
On August 24, 2024, the circular was issued by NPCI. As a preferred payment method, UPI is emerging. For this reason, there is a need to increase each transaction limit in UPI for specific categories. It was further said that the per transaction limit in UPI for institutions for tax payment has been increased to Rs 5 lakh.
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NPCI has asked banks, payment service providers, and UPI apps to implement the increased tax payment limit by September 15. This means that till September 16, you can use UPI to make tax payments of Rs 5 lakh. Additionally, individuals can now make UPI payments up to Rs 5 lakh per transaction for other categories as well.
UPI payments of up to Rs 5 lakh can also be made for hospitals and education institutions, IPOs, and RBI Retail Direct schemes. But the thing to note is that this will be applicable only on some transactions. Also, you need to check with your bank and UPI to see what limits they allow.
UPI limit of up to Rs 1 lakh is given for most peer-to-peer transactions. However, these banks decide what their UPI limit will be. For example, Allahabad Bank allows a limit of making UPI payments up to Rs 25000. Whereas HDFC Bank and ICICI Bank have set a limit of Rs 1 lakh. Whereas for capital markets, savings, insurance, and foreign transactions, the UPI limit is up to Rs 2 lakh.
