Updated Apr 18, 2021 | 11:57 IST Just as income from sources like Fixed Deposit (FD) or Mutual Funds are taxable; similarly, there is also Income Tax on UPI transactions. Income Tax rules on e-wallet or UPI transactions: All you need to know New Delhi: Transaction via e-wallets and UPI transactions have increased manifold especially during the last couple of months. In the current times when there are restrictions in respect of withdrawal from same bank ATM, cash transaction limit, withdrawal charges etc, people prefer to go cashless and use digital wallet or UPI transfers. There are some implications of these e-wallet or UPI transactions that you need to know. As per income tax rules, reporting of salary income, income from other sources, capital gains, etc. is mandatory in the income tax return (ITR) filing. Likewise, funds received via UPI or e-wallets are also required to be put forth while tax filing.