Is cashback earned in online wallets considered...

Is cashback earned in online wallets considered as your income?

Score: 1 Votes: 1
Dd
Budding Star
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Does cashback earned in online wallets like PayTM, Payzapp, etc. considered as your income? Is it chargeable to tax?

6 Comments  |  
5 Dimers
Missing
Deal Cadet
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lol – kehdo ki yea jhoot hai

Black
Analyst
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No it is in the nature of discount on your purchases and not income on your investments

Missing
Deal Subedar
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As of now, there is no clear definition of treatment of cashback. Logically, it is reduction in expense. But the way it is becoming popular, the IT dept may soon want to tax it.

Black
Analyst
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@panchabhut wrote:

As of now, there is no clear definition of treatment of cashback. Logically, it is reduction in expense. But the way it is becoming popular, the IT dept may soon want to tax it.


I don’t think they can tax it. If they do it will require amendment. Most of the items purchased online are either personal expenditure or movable personal effects which are not even assets as per Income Tax Act. So anything earned on it cannot be taxed

Missing
Deal Subedar
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The problem with Income Tax is that anything can be brought into it by way of an amendment.

Missing