Now, pay income tax on cumulative cashbacks above Rs 50,000
Updated : June 27, 2019 11:06 AM IST
Cashbacks are discounts given against expenses made. These can either be immediate or deferred for after the transaction has been completed.
This is so because as per Section 56(2) of the Income Tax Act, an amount exceeding Rs 50,000 for individual taxpayers would be subject to gift tax and declared under ‘income from other sources’ or ‘profits and gains from business or profession’.
If one fails to declare such ‘income’ in the ITR, it could lead to reassessment under Section 147 of the Income Tax Act.