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Income tax calculation on gift cards

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rajesh

23 Points Posted on 24 July 2023

hello everyone i have a question

I work on a website
which gives me amazon USD gift cards. I am selling them on a website.
Where Indian buyers transfer money to me. i am little confused on how to calculate tax on that income.

the income is started from may 2023.

Replies (3)

Quick Summary

This discussion addresses the complexities of calculating income tax on Amazon USD gift cards received as payment for work on a website. The user is selling these gift cards to Indian buyers and receiving payment, leading to confusion about how to correctly declare and pay tax on this income. The query focuses on future tax implications, with potential annual earnings estimated between £300,000 and £500,000.

sabyasachi mukherjee

Profession

19978 Points Posted on 24 July 2023

Value of gift. where do u encase it??

rajesh

23 Points Posted on 24 July 2023

hi the value can be over 3-5 lakh per year currently there is no income for previous financial year i am just asking for future reference.

Aashok Kumar Sharma

Finance/Compliance Consultant

75642 Points Posted on 08 November 2026

Earnings in gift cards are income:

• If you earn Amazon USD gift cards from a website (for tasks, surveys, freelance work), that's income (business or professional income, or other sources), valued at the INR equivalent when received.

• When you sell the gift cards for INR, any gain or loss on sale (over the value at receipt) is incidental. Gift cards are excluded from the VDA definition (CBDT notification excludes gift cards and vouchers), so Sec 115BBH (30%) doesn't apply.

• Report the income in the ITR (Other Sources, or business under 44AD/44ADA if regular work). If receipts exceed Rs 20 lakh, GST registration (export of services, if foreign clients) may be needed.