New Delhi: The Union Finance Ministry has clarified that there will be no tax on sending money through UPI. There were reports that the central government is planning to tax UPI payments.
It is in this situation that the Ministry of Finance clarified its position.
The ministry also said it will discuss other ways for UPI platforms to charge their service charges. It is a method that is convenient for the public and gives great productivity to the economic sector. The government is not thinking of taxing it. The ministry clarified.
The ministry also said that it will try to resolve the concerns of the service providers about the service charges through other means. Such platforms are customer friendly. Last year too, the government provided financial support to the digital payment system. This time it continues. It is also to adopt more new ideas and technological systems.
Recently, the RBI sought feedback from the public regarding changes in digital payments. Comments were sought on factors including charging for payment transactions.