UPI, NEFT, RTGS, IMPS payments don't trigger tax notices on their own. CA Abhishek Soni says the key is whether your transactions match your reported income.
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The mode of payment does not determine whether a taxpayer receives an income tax notice. Chartered accountant Abhishek Soni, CEO of Tax2win, said simply using UPI, NEFT, RTGS, or IMPS does not trigger a notice. What matters is whether the transactions match the income reported in a person's tax return.
Soni explained that the Income Tax Department looks at consistency. A person who reports a low income has a bank account showing large or frequent transactions could face questions. The same applies if an account receives regular UPI payments that appear to be business income and the taxpayer does not report those earnings.
Banks report certain high-value transactions to the tax department. That reporting does not automatically lead to a notice. Soni said that if the transactions are genuine, properly documented, and consistent with the income in the tax return, there is generally no cause for concern.
The payment method itself is irrelevant. The department looks at the underlying financial picture.
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