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ARTICLE · 18 DECEMBER 2019

Are Transactions Made Through E-wallets Taxable?

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With the advent of demonetization, the use of online payments and e-wallets has significantly risen.

IndiaTax
Rupin Chopra
Rupin Chopra
Vikram Narula
Vikram Narula
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With the advent of demonetization, the use of online payments and e-wallets has significantly risen. Business owners have accustomed themselves to accepting payments through online modes. Even amongst peers, transfers through e-wallets have become more frequent than ever. The facilitation of cashbacks, online gift cards, rewards and vouchers have also lured users towards recurrent use of e-wallets. They have gained immense popularity because of the convenient, secure and hassle free nature of transaction provided by them.

However, such transactions are not immune to tax scan. Mandatory KYC compliance for continuing the use of these wallets verifies the user and links his authentic governmental identification. The records maintained by these platforms further provide the proof of all transactions.

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