INCOME TAX16 Sept 2026
End of free era for UPI: Here's what changes, what doesn't | Mint
From 15 October, the Unified Payments Interface (UPI) will charge merchants a small fee on person-to-merchant payments above ₹2,000. The standard fee is 0.4%, capped at ₹300. Consumers still pay nothing, and small vendors earning up to ₹1 lakh a month stay exempt. Most daily payments remain unaffected. If you run a larger business, review how this fee hits your higher-value collections.
Key Statutory Highlights
- From 15 October, UPI person-to-merchant payments above ₹2,000 carry a standard fee of 0.4%, capped at ₹300.
- Consumers pay nothing, person-to-person transfers stay free, and merchants receiving up to ₹1 lakh a month through UPI QR codes remain exempt.
- Merchants cannot pass this fee on to customers, and payment apps cannot add platform charges of their own.
Actionable Advice for Taxpayers / Founders:If you accept higher-value UPI payments, factor this fee into your costing for the coming months and watch your margins. Before changing any prices, check with your CA on how it applies to your business.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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