Paytm has introduced a new rule that will cost us an arm and more: if an amount of money more than Rs. 10,000 is added into a Paytm account with a credit card, there will be a heavy tax levied on the amount.
This rule will come into effect starting January 1, 2020.
Paytm’s New Rule:
Paytm has introduced a new rule, wherein, if you add an amount of more than Rs. 10,000 in your Paytm wallet, Paytm will levy a charge of 1.75% + GST on the entire transaction. This is applicable if you add the money using a credit card.
Paytm, while answering a query, said, “Please note that charges of 1.75% + GST shall be applicable for money added through credit card once the limit of 10,000 is reached.”
For example :-
If you add an amount of Rs. 12000 to your Paytm wallet through your credit card, you will be charged 1.75% + GST on the entire amount, i.e., Rs. 12,240 will be deducted from your bank account, but the amount that will be added to your Paytm will be Rs. 12000 only.
If you add any amount of money that is less than Rs. 10,000, even if they are separate transactions, will not be charged. For example, if you add Rs. 2000 in one transaction and Rs. 3000 in another transaction, that will not be charged, nor will any amount be charged up to Rs. 10,000. However, if you carry out a transaction of Rs. 5001, the entire amount will be charged. All the following transactions will be charged as well.
How To Avoid Facing This Charge :-
Limit your Paytm wallet usage to Rs. 10000. Add only Rs. 10,000 to your Paytm wallet in one calendar month.
As per Paytm, you can avoid facing these charges if you recharge your Paytm wallet with any other mode except the credit card. You can use United Payments Interface (UPI) or debit cards and any other method to avoid facing the tax charges and GST. Paytm said, “To add money to your wallet without any charge, we recommend you to use other payment options such as UPI or Debit Card. Kindly refer the charges mentioned on our website.”
