Receipts in bank account by way of transfer from various persons via UPI

This query is : Resolved

Quick Summary

If you've received a significant amount, over 16 lakh, through various UPI transfers in a year, the Income Tax Department may inquire, especially if there's no declared business. Simply declaring a percentage of receipts as profit isn't advisable without a legitimate business. If you're acting as a collection agent or pooling donations, it's crucial to maintain proper records and be prepared to justify the source and use of funds to the ITD.

Jacob Abraham

Jacob Abraham (Querist)
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21 April 2025 One of my friend received receipts from various persons via google pay and other upi apps . Total receipts for the year 2024-25 is Rs. 16,10,000

Do we have to file income tax return by declaring it as receipts and declare @ 8%

If he is not filing the return, is they any problem from Income Tax Department ?
Kindly advise

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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21 April 2025 For what purpose he received these amounts? Whether he is doing any business?

Jacob Abraham

Jacob Abraham (Querist)
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21 April 2025 No business & No permanent job. But collection agent for private unregistered Chitty. And also social work to pooling donations from various persons to his bank account and lump sum payment to helping for medical treatments etc. Collection coming/ depositing to bank via various Google / UPI. Cash Withdrawing and giving cash to Chitty & medical helps. More than 1000 transactions in bank during the year

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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22 April 2025 The collection is reason for inquiry from ITD, when there is no business activity. You cannot declare 6/8% profit without having eligible business. Declaring him as collection agent on commission basis can justify it to some extent, but for that you have to maintain proper books of accounts and justify funds outflow.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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28 September 2025 Good luck.....

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