Are Credit Card Reward Points taxable ?
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Credit Card Reward Points
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Quick Summary
It like case covered under section 56 if some conditions fulfill then it might be taxable.
also depends on what you got from that reward points.
also depends on what you got from that reward points.
There are several problem with credit card rewards. For e.g.. they may not be convertible to cash. Some of the cards have fees, so in that case even fees should be accounted for. Some credit cards may offer only airmiles, while others have points that will have a different value for travel, different for shopping and a lower for cash. Also reward points can expire if not used. Also bank like YES BANK degraded the value of reward points significantly when it ran into problems. The rewards is also not constant and keeps on changing what you can do with them. So in that case how do we quantify the value.
If you not received benefits exceeding 50000 than not at all issue.
No, the problem is that it is more than 50K, for e.g. a lakh of airmiles, and so on.
Is in value it exceeds Rs.50000?
I think no
the problem is how to convert airmiles to rupees. Also lets say i get 2L of points that i can use for hotels, or that can be used for 1L of shopping or that can be used for 70K of cash, how do i account for this
Only cash and some specific properties are taxable as gift under section 56 which not cover that airmiles, hotel benefits etc.
How about shopping ? - Amazon, Flipkart, Croma, Shopper Stop, Restaurant Vouchers, Spa Vouchers, Jewellery Store Vouchers
Would more experts throw light on this ?
Can experts please throw more light on this
Jewellery, bullion etc are taxable if you received them in value excess of Rs.50000
Yep taxable
Can I reduce these from the expenses that occurred on my card ?
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