Tax Rules on CASH💔BACKs
A must read Thread 🧵
Received any kind of monetary benefit as Cashback on personal spends via either of Credit Card, Debit Card, UPI, Mobile Wallets and combined value exceeds 50K in an FY !
P.S.- This thread is for personal spends & not business 🧐

U/S 56(2)(X) of Income Tax act 1961, it will be taxable under the head "Income from other sources"
Discounts are not subjected to taxation, because they don't generate any income.
This 50K cashback limit is inclusive of Gift money received from non-relatives too in an FY.

Keep the above IT rule in mind to avoid the Reassessment notice u/s 147 for under reporting of income.
Cashback offers are very tempting to redeem 😉
Make sure you keep track of the Cashback amount being credited in order to avoid a tax burden 😅

IT rules can be interpreted in different ways. It's difficult to cover in a thread entirely.
As such if Cashback amount earned is very high, you might wanna check the Income Tax rule in detail or better consult an IT expert.
S-B-I Cashback CC owners be careful 🫢

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