UPI Tax: Tax to be levied on digital payments above ₹2,000; government preparing new rules

UPI Payment: If you use UPI for payments, this news is relevant to you. The central government is considering reintroducing the Merchant Discount Rate (MDR) on UPI merchant transactions of ₹2,000 or more.

UPI Payment: Digital payments have simplified many tasks for people. There is no longer a need to carry cash around as before, since everyone now uses UPI payments. If you also use UPI, this news is important for you. Users making UPI payments might see a significant change in the near future.

What is the proposed change?

According to sources, the central government is considering reintroducing the Merchant Discount Rate (MDR) on UPI merchant transactions of ₹2,000 or more. The biggest question now is: who will this apply to?

Who will it apply to?

It is worth noting that merchants or business owners with an annual turnover of up to ₹1.5 crore may be exempted from this charge. In other words, it will primarily affect large merchants. The government could make a decision on this proposal within a month.

What is MDR?